The NSW Government has now introduced the fourth reform bill in its comprehensive overhaul of strata legislation, marking one of the most significant updates to strata law in decades in New South Wales.

Following staged amendments throughout 2024 and 2025 to the Strata Schemes Management Act 2015 and the Community Land Management Act 2021, further reforms will take effect from April 2026 and later in the year.

These legislative changes are aimed at delivering structural reform.

For owners corporations, committees, and developers, the implications are real — particularly around governance accountability, Section 106 repairs compliance, capital works planning, embedded networks, EV infrastructure, and building manager oversight.

At McCormacks, we see this moment as pivotal. Because in a more regulated environment, the quality of your strata management partner matters more than ever.

Section 106 enforcement: repair & maintenance now under real scrutiny

Under strengthened powers, NSW Fair Trading can now investigate, enter premises, require documents, and issue compliance notices where an owners corporation fails to meet its duty to repair and maintain common property.

The limitation period for owners seeking damages has extended from 2 to 6 years. This fundamentally shifts risk exposure for poorly managed schemes.

Professional maintenance tracking, documented decision-making, and proactive capital planning are no longer best practice — they are risk mitigation necessities.

Levy recovery reform: fairness, but with financial implications

From April 2026:

  • Owners corporations must offer structured payment plans for financial hardship.
  • Debt recovery costs can no longer be automatically on-charged without Tribunal or Court orders.

Schemes must now budget for potential recovery costs — impacting financial forecasting and cash flow management.

This is an area where disciplined financial governance separates well-managed schemes from reactive ones.

Standardised 10-year Capital Works Fund Plans (from 1 April 2026)

New mandatory forms under Section 80 will require enhanced disclosure and consideration of sustainability infrastructure, including:

  • Solar
  • EV charging
  • Water efficiency measures

Capital works planning is no longer just about paint and roofs. It now requires environmental foresight and long-term asset strategy.

For developers, this signals a shift toward lifecycle thinking from day one. For existing schemes, it means greater scrutiny of forecasting quality.

Enhanced developer accountability 

For new multi-storey developments:

  • Independent surveyor certification of initial maintenance schedules and first-year levy estimates is mandatory.
  • Documentation must be provided before the first AGM.
  • Significant penalties apply for non-compliance.

Developers who want smooth first AGMs and confident purchasers need experienced strata advisors involved early — not post-registration.

Embedded networks, EV charging and public compliance records

The newly introduced 2026 bill proposes further modernisation:

  • Public compliance records allowing buyers to check unresolved repair issues.
  • Clearer rights for lot owners to install EV charging infrastructure.
  • Protections against unfair embedded network exit fees.
  • Expanded powers for NCAT to terminate non-compliant building manager agreements.

Transparency is increasing, as is reputational exposure.

Mandatory strata committee training commencing October 1, 2026

From October 1, 2026, NSW Fair Trading launches mandatory annual training for strata committee members. This introductory training is designed to support committee members and strata managers in the significant role they play to support the operation of strata schemes across the state.

Committee members elected to a strata committee at their annual general meeting (AGM) on or after October 1, 2026, must complete the mandatory training within three months of being elected or appointed, via StrataHub or risk automatic removal.

This signals a broader trend: strata governance is becoming more professionalised. In the process, well-supported committees will thrive.

What this means for Sydney strata schemes

The era of passive strata administration is over.

The reforms favour:

  • Proactive maintenance systems
  • Transparent financial governance
  • Clear conflict-of-interest management
  • Early developer engagement
  • Professional documentation discipline

For strata committees considering a management change, these reforms provide a natural inflection point to review whether your current manager is equipped for the regulatory environment ahead.

For developers, it reinforces the importance of selecting a strata partner who understands governance risk, disclosure obligations, and long-term asset strategy — not just AGM facilitation.

Our position

At McCormacks, we are ready because reform is not reactive, it is something we prepare for:

  • Implemented enhanced Section 106 maintenance tracking systems.
  • Our systems have been upgraded to ensure full embedded network disclosure compliance.
  • Updated levy recovery and hardship processes.
  • Reviewed building manager agreements for compliance.
  • Audited 10-year capital works plans across our portfolio.
  • Investing heavily in team training to ensure advisory capability.

We believe that in a more transparent, accountable strata landscape, best practice-driven leadership defines strata success.