New legislative changes have come into effect for the 87,000+ Strata Schemes in NSW, as the latest stage of reforms under the Strata Schemes Legislation Amendment Act 2025 (NSW) commences on 1 April 2026.
From this date, NSW will commence the process of a significant multi-phase legislative overhaul of its strata laws, with the aim of enhancing accountability and consumer confidence across the strata sector.
The most recent reforms from October 2025 targeted financial fairness for owners and stronger compliance powers, with changes including:
- mandatory financial hardship statements in levy notices;
- new investigative and enforcement powers for NSW Fair Trading to ensure Owners Corporations uphold their duty to repair and maintain common property;
- new standardised forms for payment plans entered into by owners with Owners Corporations or Strata Committees for overdue levies (including new rules for the steps of consideration in an owners’ request for a payment plan);
- clarification as to which service providers can be classified as building managers (e.g. service providers such as electricians, gardeners, cleaners or plumbers are not building managers); and
- new duties for building managers, including:
- acting in the best interests of the Owners Corporation;
- acting promptly and with due diligence regarding the maintenance, repair or safety issues relating to common property;
- the provision of written notice of benefits and connections when suggesting a contract for goods or services; and
- disclosure of any relationships and financial interests.
The 2026 reforms build upon this need for greater transparency, with the changes ensuring stricter standardisation regarding documentation and improved professional accountability for the benefit of owners and investors.
This article details the changes for April 2026 and beyond, as well as their direct impact on owners, Strata Committees and other stakeholders involved in Strata Schemes.
Standardisation of Capital Works Fund Plan
All Strata Schemes are required to prepare a 10-year capital works fund plan. This is a fundamental tool used to anticipate and meet major expenditures regarding the repair and maintenance of common property in a Strata Scheme. A well-prepared plan is key to preventing financial instability and any resultant emergency levies in order to cover costs in the wake of unexpected major works.
From 1 April 2026, Owners Corporations must update their plan to a new prescribed standard form when reviewing or replacing an existing 10 year plan, aligning all NSW Strata Schemes to a consistent format.
By promoting greater uniformity in the plan’s structure, it provides buyers with an easier comparison of the financial health between different buildings while ensuring improved transparency regarding any upcoming major expenses.
Strengthening Developer Accountability – Initial Maintenance Schedule (IMS)
A new standard form will also apply to the preparation of an initial maintenance schedule (IMS) which outlines all the required maintenance for common property. This schedule must be provided to the Owners Corporation at least 14 days ahead of the first General Meeting of the Owners Corporation. Under the reform, from 1 April 2026, original owners of a Scheme must ensure the IMS is prepared using the new standard form.
Additional requirements apply for the original owners of new multi-story schemes (e.g. apartment blocks), who must engage an independent qualified surveyor to review and certify the IMS. The surveyor must also review initial levy estimates prepared by the original owner and certify they are realistic for the year following the first Annual General Meeting and based on actual projected expenses.
Like the capital works fund plan, this new standard format will ensure greater consistency and transparency in the provision of information included in schedules. It also helps to promote initial levies which are realistic and not artificially low, preventing any bill shock due to future unforeseen maintenance costs.
Updating Strata Information Certificates
The 2026 reforms also bring about a critical change to the Strata Information Certificate (also known as a “Section 184 certificate”), which provides information about the financial and administrate health of a specific lot in a Strata Scheme.
From 1 April 2026, the Strata Information Certificate must include information about exclusive supply networks (embedded networks) and the nature of such networks. Embedded networks refer to privately owned networks which supply multiple homes within a site with utilities (water, gas, electricity etc.).
This improved transparency is beneficial during the due diligence phase for buyers, as details about embedded networks have historically been buried in strata records and often discovered only after settlement.
Further Reforms Expected Later in 2026
Additional changes are expected to be implemented in mid-to-late 2026. Most notably, section 37(2) of the amended Strata Schemes Management Act 2015 (NSW) now prescribes a compulsory educational requirement for all members of a Strata Committee.
All members will be required to undergo mandatory prescribed training to ensure a sufficient understanding of their duties and obligations, plus their legal responsibilities as a committee member. Failure to undergo training will result in the cessation of one’s committee membership.
This reform is key to improving strata governance, ensuring all committee members have the required knowledge to protect and uphold the interests of owners in a scheme. It will promote better decision-making and reduce strata disputes as members are adequately informed and trained to make operational and financial decisions.
Furthermore, like the Section 184 certificate, another major reform later in 2026 will be the required disclosure of exclusive supply network information in off-the-plan contracts for sale.
What Does This Mean for You?
For developers, Owners Corporations and Strata Committees, the 2026 reforms create a series of new obligations where compliance failures may bring about financial penalties, member removals and unnecessary legal disputes.
It is crucial that relevant scheme stakeholders familiarise themselves with the changes to capital works fund plans, the IMS and Section 184 certifications for reviews and changes made from 1 April 2026.
If you have any questions and/or require any assistance relating to the reforms, please contact Coleman Greig’s Property Law Team today.
