With more than 85,000 strata schemes across NSW, including apartments, townhouses, and mixed-use complexes, strata living is central to Sydney’s property market.

On 27 October 2025, important changes to NSW strata laws come into effect. These reforms are designed to strengthen governance, provide protections for owners in hardship, and improve the transparency of building management.

Whether you already own in a strata scheme or you’re considering buying into one, understanding these changes is vital. This blog explains what’s new, why it matters, and how it affects both strata owners and prospective purchasers in Sydney.

NSW Strata Laws: The Key Changes from October 2025

The reforms are significant and wide-reaching. Here are the key updates:

Stronger Powers for NSW Fair Trading

Fair Trading now has expanded authority to issue binding orders in strata disputes. This should lead to quicker resolutions and less reliance on lengthy tribunal hearings.

Support for Owners in Financial Hardship

A new framework provides greater support for owners under financial stress, including options for deferred levy payments. This ensures temporary hardship doesn’t spiral into broader scheme instability.

Stricter Oversight of Building Managers

Building managers play a vital role in running strata schemes, but concerns about conflicts of interest have been ongoing. The reforms impose clearer boundaries on their roles and contracts, boosting transparency for owners and buyers alike.

Streamlined Meetings and Voting

The reforms introduce more straightforward rules for meetings and electronic voting, designed to increase participation and make decision-making more efficient.

What the NSW Strata Laws Mean for Strata Owners

For existing owners, the reforms provide:

• Improved protection in disputes – Fair Trading can step in earlier, saving time and legal costs.
  
• Financial relief in hardship – Clearer hardship provisions reduce the risk of default or arrears.
  
• More accountability from managers – Greater oversight helps protect owners from unfair contracts.
  
• Simpler engagement in decisions – Online voting and streamlined meetings mean more owners can participate.

For owners, this creates a more transparent, fair, and inclusive environment for managing their schemes.

What the NSW Strata Laws Mean for Prospective Purchasers

For buyers considering an apartment or townhouse in Sydney, the reforms reshape what to look for during due diligence.

• Confidence in governance: Stronger oversight from Fair Trading reduces risks of mismanagement.
  
• Transparency in contracts: Building manager agreements are clearer, with less room for hidden conflicts.
  
• Fair treatment on levies: New hardship provisions reduce the chance of levy arrears destabilising a scheme.
  
• Simpler information access: Prospective buyers can more easily verify compliance with the new rules.

Overall, the reforms give buyers greater peace of mind when purchasing into Sydney’s many strata schemes.

Investor, First-Home Buyer, and Expat Considerations

Investors in Sydney Strata Properties

Investors benefit from stronger governance, which can protect rental returns by keeping schemes financially stable and disputes under control.

First-Home Buyers in Strata Schemes

For first-home buyers, especially in the Inner West, Western Sydney, and city-fringe suburbs, the laws provide greater protection against unfair levies and poor management.

Returning Expats and SMSF Purchasers

Expats and SMSF buyers often value the lower-maintenance appeal of strata properties. With these reforms, they gain added assurance that schemes are run fairly, even if they’re not actively involved on a day-to-day basis.

Practical Tips for Strata Owners and Purchasers

To get the most from the reforms, both owners and buyers should:

1. Review strata records closely – Owners should verify that committees are complying with the new rules, and buyers should look for evidence of good governance.
   
2. Assess financial health – Examine levies, capital works funds, and any history of special levies.
   
3. Understand manager contracts – Ensure building manager agreements align with the updated laws.
   
4. Engage in decision-making – Take advantage of streamlined voting and participation rights.

👉 See also: How to assess strata reports when buying in Sydney.

Why the NSW Strata Law Changes Matter

Strata ownership is now the dominant form of housing in many Sydney suburbs. From Parramatta and Green Square to Chatswood and the Eastern Suburbs, buyers and owners alike depend on well-run strata schemes.

The October 2025 reforms aim to:

• Strengthen consumer protection.
• Improve fairness in financial management.
• Enhance transparency in building manager roles.
• Simplify participation in decision-making.

For both current owners and prospective purchasers, these changes create a more reliable foundation for strata living in NSW.

The new NSW strata laws, effective 27 October 2025, are a significant update to the way strata schemes are managed.

For owners, the reforms mean fairer processes, stronger protections, and greater transparency. For prospective purchasers, they provide added confidence when considering an apartment or townhouse in Sydney.

While the reforms reduce risks, due diligence remains essential. Reviewing strata reports, assessing financial records, and understanding management contracts are still critical steps for anyone involved in a strata scheme.

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Paul Mulligan

Paul Mulligan is the Principal Buyers Agent & Expert Negotiator at MULLIGAN Buyers Agents, Sydney. One of only two buyer’s agents in Australia to complete Negotiation Mastery at Harvard Business School, Paul combines advanced negotiation skills with over 30 years of market expertise to achieve outstanding results for property buyers. Passionate about helping clients avoid costly mistakes, he provides expert guidance throughout the buying process from search to settlement.

www.paulmulligan.com.au