Strata living is an integral part of modern communities, providing a structured way for people to own and share property within a strata scheme. Whether it’s an apartment, townhouse, or mixed-use development, these properties bring together diverse residents and businesses under a common framework. However, successful strata management requires clear regulations to ensure harmonious living, fair governance, and efficient decision-making.

The Strata Schemes Management Act 2015 was introduced to provide a legal foundation for the management of strata schemes, outlining the rights and responsibilities of owners, tenants, and strata managers. This guide will break down the Act’s key provisions, including the latest 2025 reforms, to help you navigate the complexities of strata living.

What is a Strata Scheme?

A strata scheme is a building or group of buildings divided into individual lots, such as apartments, townhouses, or villas. Each owner holds exclusive ownership of their lot while also sharing responsibility for common property. This includes gardens, stairwells, external walls, driveways, and other communal spaces—areas that everyone benefits from and must maintain collectively.

Strata living offers convenience, shared amenities, and a structured way to manage property. But it also requires clear governance to keep things running smoothly. That’s where strata management services come in, ensuring that day-to-day operations, maintenance, and by-laws are properly handled. A strata committee, chosen by lot owners, helps guide decisions, often collaborating with professional strata managers to maintain a well-organised community.

What is the Strata Schemes Management Act of 2015?

The Strata Schemes Management Act 2015 governs the management of strata schemes, setting out clear guidelines for property owners, residents, and strata managers. It provides a structured legal framework for the operation, administration, and dispute resolution within strata communities.

Introduced by the NSW Government, this strata management act replaced the 1996 legislation, addressing modern challenges in strata management. It focuses on financial transparency, committee governance, by-law enforcement, and building maintenance, ensuring that community management associates, building management teams, and strata committees work together to maintain fair and efficient strata operations.

For full details, visit the NSW Strata Schemes Management Act 2015.

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Recent Updates to the Strata Schemes Management Act

The government has rolled out substantial reforms to address today’s challenges in strata living. These carefully crafted changes strengthen the foundations of transparency, governance, and accountability across all strata schemes. Here are the key updates that will reshape strata management when they take effect in 2025:

Stricter Disclosure Obligations for Strata Managers

As of 3 February 2025, strata managers must provide more frequent and comprehensive disclosures regarding their relationships with suppliers, developers, and any commissions they receive. This measure aims to enhance strata management transparency and ensure fair decision-making.

Increased Enforcement Powers for NSW Fair Trading

From 8 November 2024, NSW Fair Trading has been granted expanded regulatory powers to monitor compliance with the Strata Schemes Management Act and enforce new disclosure requirements.

Proposed Legislative Reforms

Introduced to NSW Parliament on 20 November 2024, these reforms seek to:

  • Strengthen developers’ accountability for maintenance schedules and levy estimates.
  • Improve oversight of strata management agreements and introduce statutory duties for building management teams.
  • Protect owners corporations from unfair contract terms.
  • Enhance governance within strata committees and improve decision-making processes.
  • Encourage sustainability initiatives, requiring discussions on infrastructure improvements at annual general meetings.
  • Introduce measures to assist owners facing financial hardship.
  • Support infrastructure upgrades for owners with special accessibility needs.

These updates reflect the NSW Government’s commitment to ensuring fair, transparent, and effective strata management services that support thriving communities.

For a full breakdown, visit the NSW Strata Schemes Management Act 2015.

Why is the Strata Schemes Management Act Important?

The Strata Schemes Management Act 2015 is the bedrock of successful strata living. It establishes the ground rules for everything from owner rights and responsibilities to resolving disputes.

Establishes By-Laws on the Behaviours of Owners

By-laws define what is permitted within a strata scheme, covering pet ownership, noise restrictions, and renovation guidelines. The Act ensures that by-laws are clear, enforceable, and fair for all residents.

Facilitates Dispute Resolution

Strata communities can experience disputes over levy payments, noise complaints, and maintenance issues. The Act provides structured pathways for resolution, including mediation and tribunal hearings if necessary.

Sets Guidelines for the Use of Common Areas

Shared spaces—including hallways, pools, and gardens—are regulated under the Act to prevent misuse and ensure proper upkeep. Building management companies usually oversee these areas for long-term sustainability.

Financial Management & Levy Transparency

The Act requires strata schemes to maintain clear financial records, ensuring budgets, levies, and sinking funds are managed transparently and efficiently.

Regulates Strata Committees and Voting Rights

The Act sets rules for electing committee members, detailing their decision-making responsibilities to promote democratic governance within strata schemes.

Ensures Transparency in Building Defects & Repairs

Developers must submit formal defect reports, ensuring major repairs are addressed promptly and improving building management accountability.

Ensure Harmonious Living With Professional Strata Management

Strata communities thrive when well-structured management frameworks are in place. The Strata Schemes Management Act 2015 provides the legal foundation, but having an expert strata management team ensures smooth execution.

At Netstrata, we offer comprehensive strata management services, including:

  • By-law compliance and enforcement.
  • Dispute resolution and committee support.
  • Financial transparency and levy management. 
  • Long-term property planning and maintenance.

Your strata scheme deserves expert care. Contact Netstrata today and let’s build a stronger, more harmonious community together.