Upcoming Strata reforms
As the strata industry evolves across Australia, several legislative and regulatory changes are set to impact strata insurance and operations. Below is an overview of key reforms by state, highlighting broker and strata manager disclosures, building codes, and other pertinent regulations.
We’re also here to help you make sure you’re ready for these changes. Contact us on 1300 361 263 or info@chu.com.au if you’d like to discuss how new changes may affect you.
New South Wales (NSW)
Several significant changes to strata laws are set to take effect in New South Wales (NSW) in 2025, aiming to enhance transparency and accountability within the strata management sector.
Starting from 3 February 2025, NSW will implement expanded disclosure requirements for strata managers. These reforms mandate strata managers to provide detailed information about their connections with suppliers and developers, as well as any commissions and training services they receive. The aim is to enhance transparency and ensure strata managers act in the best interests of owners' corporations. Additionally, from 8 November 2024, NSW Fair Trading's enforcement and regulatory powers have been strengthened to support these disclosure obligations. Further reforms introduced to NSW Parliament on 20 November 2024 include:
- Strengthening developers’ accountability for initial maintenance schedules and levy estimates in new strata developments.
- Improving oversight of strata management agreements and introducing a statutory duty on building managers.
- Protecting owner’s corporations from unfair contract terms in standard form contracts.
- Enhancing owner’s corporation obligations to maintain and repair common property.
- Supporting the adoption of sustainability infrastructure by requiring consideration at each annual general meeting.
These measures aim to bolster governance within strata schemes and promote sustainable practices.
Australian Capital Territory (ACT)
The ACT Government is actively engaging in national policy and regulatory reforms impacting the building regulatory system. Key initiatives include:
- Implementing a registration scheme for engineers to ensure accountability and high-quality design.
- Strengthening building certification services through various initiatives.
- Finalising and implementing developer licensing and regulation to improve property developer accountability.
- Establishing a 10-year pathway towards climate-ready and environmentally sustainable buildings.
These reforms are designed to enhance the effectiveness of the ACT’s building regulatory system and ensure the safety and well-being of the community.
Western Australia (WA)
WA is conducting a five-year review of its strata laws, focusing on the obligations of strata managers. The review addresses requirements for strata managers to act in the best interests of the strata company, including:
- Disclosure of any conflicts of interest.
- Transparency regarding commissions received.
- Ensuring compliance with the Strata Titles Act.
These measures aim to enhance transparency and accountability within the strata management sector.
Want to know more about how these changes may affect you?
If you have questions around how CHU can help support you to ensure your practices relating to placement of insurance comply with these changes across Australia, we’re here to help.
1300 361 263 or info@chu.com.au
