Strata Legislation Changes in 2025

The Strata Schemes Legislation Amendment Act 2025 introduces significant reforms to the Strata Schemes Management Act 2015 (SSMA), with key provisions coming into effect in at least 3 stages throughout this year. Some have been effective since 2 March 2025, some started on 1 July 2025, some will start on 27 October 2025 and others come in later in 2026. The changes affect the owners corporation (OC), strata committee (SC), strata manager (SM) and building manager (BM).

This document does not constitute legal advice.

1. Changes that started on 2nd of March 2025
  1. Section 45 – Vacation of an SC Officer (chairperson, secretary or treasurer) can be resolved by ordinary resolution at a general meeting, rather than a special resolution.  This already applied to the vacation of SC Members.
  2. Schedule 1 clause 25A – Application to company nominees removed – it previously restricted company nominee votes to 5% of owners (not 5% of lots, as it is for proxies), but even that restriction on company nominees is now removed.  People can now vote as company nominee for an unlimited number of lot owners/lots.
2. Changes which commenced on 1 July 2025
  1. Section 5 – An Accessibility Infrastructure special resolution is passed when <50% are against
  2. Sections 14 & 16 – Increased maximum penalty for failure to convene First AGM within 2 months of end of initial period (from $1,100 to $11,100, plus $220 per day) and failure to deliver certain documents to OC at least 14 days before First AGM (stays at $11,000, but add $220 per day)
  3. Section 37 – Expands the duties of SC members on issues of disclosure, ethics and behaviour affecting others
  4. Section 42 – Better defines the function of the chairperson
  5. Section 55 – Requires SMs to provide a copy of their exercise of functions to the OC every 6 months (instead of 12 months, so not solely at the AGM)
  6. Section 57 – Introduces a defence to a prosecution of a SM where there is a breach of the OC’s duty, where the breach was caused by the OC and the SM took all reasonable steps to avoid it
  7. Section 66 – Brief clarification on definition of BM, so it excludes someone doing it on a voluntary basis or SC members doing it
  8. Section 72 – NCAT may end or change a SM’s agreement if the SM unlawfully carries on a business supplying services to the OC
  9. Section 79 – The budget estimates must include estimates for the repair of sustainability infrastructure
  10. Section 80 – The OC must consider the initial maintenance schedule prepared by the original owner when preparing its first 10-year plan.
  11. Section 103 – Where a general meeting approves engaging lawyers for the OC, the motion must either specify the monetary limit or approve unlimited costs
  12. Section 106(4) – Clarifies when an OC can defer compliance with the s 106 duty to maintain and repair common property
  13. Section 106(5)-(6) – Owners now have 6 years to bring an action for damages due to a failure to maintain, up from 2 years. This only applies to claims lodged after 1/7/25
  14. Section 108 – A special resolution approving changes to common property must (previously said may) state whether maintenance is owner or OC responsibility. Even motions prepared by lawyers often lack this
  15. Section 110 – An OC must give written reasons for refusing minor renovations, and an application is deemed approved without a decision or reasons within those 3 months
  16. Section 115 – Initial maintenance schedule must be in prescribed form
  17. Section 139A – Clarifies what evidence of training of an assistance animal is needed
  18. Section 183 – Inspections of records must be “secure”, and the fee has increased
  19. Uncollected Goods Act 1995 – includes powers for items left on lot property.
3. Changes which will commence on 27 October 2025
  1. Section 70A – Places ethical obligations on BMs, and penalties for breach
  2. Section 83 – Levy notices must be accompanied by any information approved by the (Government) Secretary
  3. Section 85 – An OC cannot pass a blanket resolution refusing payment plans, but can refuse payment plans in particular cases – and the refusal must be reasonable.  Section 85(9) – the Tribunal can order the OC to agree to a payment plan if a refusal was unreasonable
  4. Section 85(6) – Includes specific requirements for payment plans and requests for payment plans
  5. Sections 85(7) and 86(6) – An OC cannot sue for contributions while a payment plan is in place and adhered to (currently it can though likely would not)
  6. Section 86(4) – The statutory letter of demand has to give 30 days’ notice of proceedings, increased from 21 days’ notice
  7. Sections 86(7)-(8) – Unless otherwise ordered by a Court/Tribunal or directed by an owner, payments by owners must be applied to (1) contributions, oldest first, (2) interest, and (3) recovery expenses.
4. Other provisions that start later in 2026 (no confirmed date yet)
  1. Section 37(2) – Mandatory training for SC members (details to follow)
  2. Section 86(2AA) – s 86(2A) Already says an OC can recover levies, plus interest and recovery expenses in the same proceedings.  Current case law says if the levies are paid before proceedings commence, an OC cannot then sue just for interest and recovery costs relating to those levies, which is a gap in the legislation.  Section 86(2AA) now adds that an OC can recover expenses only (if the levies are paid), but only if it offered a payment plan and the Court/Tribunal allows it.
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