NSW Strata Law Changes: What Took Effect on 1 April 2026

The last set of NSW strata law changes took effect on 1 April 2026. These follow earlier waves in July and October 2025 and complete the reform package that started with the Strata Schemes Legislation Amendment Act 2025.

Forum questions have shifted from what is changing to what to actually do now. This post covers the four changes that matter most for committees and buyers, and what each one means in practice.

The Four Changes Now in Effect

1. Capital Works Fund Plans Must Use a Standard Form

From 1 April 2026, any 10-year capital works fund plan that is adopted, revised, or replaced must use the prescribed standard form. The standard form requires more granular cost categories than previous practice, including costs for sustainability infrastructure such as EV charging, solar, and energy upgrades.

Existing plans do not need to be immediately replaced. The requirement applies when the plan is next revised or a new one is prepared.

What this means in practice: committees preparing or reviewing their capital works plan now need a template that complies with the new form. Some strata managers have updated their templates; others have not yet. If your building is due for a plan review, ask your manager which version they are using.

When committees go through this exercise properly, many are finding their plan needs higher contributions than before. That is why some levy increases this quarter look large. The form is not causing the increase; it is making the real number visible.

2. Independent Verification for New Multi-Storey Buildings

For new multi-storey strata schemes, the original owner (developer) must now engage an independent, accredited quantity surveyor to certify that the Initial Maintenance Schedule (IMS) meets the standard form requirements and to verify that the initial levy estimates are sufficient to cover expected year-one expenditure.

Penalties for non-compliance are up to $11,000 for individuals and $55,000 for corporations.

What this means for buyers: if you are purchasing in a new building, the developer is now required to back the levy estimates with independent verification. Levy figures in a new-building strata report should be grounded in a certified calculation, not set low to make the building look affordable at time of sale.

This does not eliminate the risk of special levies in new buildings, but it does create accountability at the point where estimates are set.

3. Strata Information Certificates Must Disclose Embedded Networks

From 1 April 2026, the Section 184 strata information certificate, which must be provided to buyers before settlement, must now disclose whether the building has an exclusive supply network, including embedded electricity, gas, or telecommunications networks.

The certificate must also now include details of any Fair Trading orders or compliance actions against the scheme, and a list of past-year and upcoming meetings.

What this means for buyers: if a building has an embedded electricity network that charges above-market rates, you will be told before you sign, not after. Some embedded arrangements are competitive; others lock residents into rates that cannot be negotiated. Knowing before settlement is the point.

Buyers receiving a Section 184 certificate should now look for a section covering utilities and exclusive supply networks. If it is absent, ask the vendor's solicitor to confirm compliance with the updated requirements.

4. The Hardship Payment Plan Framework (October 2025)

This change is included here because forum questions about it have spiked since April, even though the standardised payment plan form and the Financial Hardship Information Statement requirement for levy notices commenced 27 October 2025.

Under the framework, when an owner submits a payment plan request using the standard form:

- The owners corporation must respond in writing within 28 days - The OC cannot adopt a blanket policy of refusing all payment plans - Plans are capped at a maximum of 12 months - No fees can be charged to the owner for requesting, starting, or continuing a plan - Refusals must be in writing with stated reasons, and can only be made on reasonable grounds (such as the plan causing a fund deficiency) - No recovery action can proceed while a compliant payment plan is being followed

What this means for committees: if you are treasurer, you need a process for receiving and responding to payment plan requests within 28 days. If you do not have one, ask your strata manager to document it before the next levy quarter.

What this means for owners: if you are struggling to pay levies, you have a formal process to request a payment plan before the OC commences debt recovery. The request must be made using the standard form. Fair Trading mediation and NCAT review are available if the OC refuses unreasonably.

What the Reforms Do Not Change

Two things are worth clarifying, because they come up often.

The officer removal threshold (simple majority, down from 75 percent) took effect on 2 March 2025, not 1 April 2026. If your committee has been acting on the assumption that this is a new change, it has actually been in place for over a year.

The sustainability infrastructure protections, AGM sustainability consideration requirements, and the ban on unfair terms in standard form supplier contracts all took effect 1 July 2025. These are also already in effect.

What to Do Now

For committee treasurers: confirm your strata manager has a documented process for receiving hardship payment plan requests. If a levy notice goes out without a Financial Hardship Information Statement attached, that is now non-compliant.

For committees reviewing their capital works plan: ask your manager whether their template uses the new prescribed standard form. If not, push for an updated version before the plan is adopted.

For buyers looking at new buildings: check the strata report for evidence of independent quantity surveyor certification on the IMS. If the building is multi-storey and registered after 1 April 2026, this should be present.

For buyers looking at any existing building: the Section 184 certificate now includes embedded network disclosure. Read it. If the building has an embedded electricity arrangement, ask the vendor for the current rate schedule and compare it to the market rate.

This is informational only. Not financial, legal, or investment advice. These changes apply to NSW strata schemes under the Strata Schemes Management Act 2015, as amended. Other states have different legislation. If you need advice specific to your scheme, consult a specialist strata lawyer or licensed strata manager.