NSW Strata Law Changes 2026: What South Coast Owners Need to Know

Key legal and compliance changes for owners corporations from Nowra to Eden

NSW strata laws have been changing in stages, and 2026 brings important new requirements for owners corporations, strata committees, strata managers, building managers and developers. For South Coast schemes, these reforms are particularly relevant because many buildings are older, exposed to demanding coastal conditions, managed by volunteer committees and supported by contractors who may travel long distances between towns.

The most significant changes that commenced on 1 April 2026 affect 10-year capital works fund plans, developer maintenance documents and Section 184 strata information certificates. Earlier reforms that commenced during 2025 are also now part of everyday strata management, including stronger repair enforcement, payment-plan rules, contract protections, sustainability requirements and greater transparency from strata professionals.

This guide explains the NSW strata law changes affecting South Coast owners in 2026 and outlines practical steps for schemes from Nowra and Ulladulla through Batemans Bay, Moruya, Narooma, Bega, Tathra, Merimbula and Eden.

The 2026 strata reforms at a glance

From 1 April 2026, schemes must use the prescribed standard form when revising or replacing their 10-year capital works fund plan.

Developers must use a standard initial maintenance schedule and, for new multi-storey schemes, obtain independent quantity surveyor certification of the schedule and initial levy estimates.

Section 184 certificates must now disclose more information, including embedded networks, certain compliance action and recent or upcoming meetings.

Repair and maintenance duties are subject to stronger NSW Fair Trading investigation and enforcement powers introduced in October 2025.

Owners seeking help with overdue levies have clearer rights and a standard payment-plan process.

Strata managers and building managers face stronger disclosure, reporting and conflict-of-interest obligations.

Mandatory strata committee training and further embedded-network disclosure reforms are scheduled for later in 2026, with commencement details to be confirmed by the NSW Government.

1. A standard form for 10-year capital works fund plans

From 1 April 2026, an owners corporation must use the NSW Government's standard form when it revises an existing 10-year capital works fund plan or prepares a new plan to replace one that has reached the end of its 10-year period.

A scheme with an existing plan does not need to recreate it immediately merely because the law changed. The standard form becomes mandatory when the owners corporation next revises or replaces that plan. This distinction is important for committees planning their AGM agenda and budget.

A 10-year plan should identify major common-property assets, expected maintenance or replacement timing, estimated costs and the contributions required to fund that work. For a South Coast building, it should reflect the actual condition and exposure of the property, including roofs, gutters, stormwater systems, balconies, waterproofing, concrete, external metalwork, retaining walls, pools, private roads, fire systems and other shared infrastructure.

Coastal salt, wind-driven rain, vegetation, storm activity and limited specialist availability can accelerate deterioration or increase project costs. A generic city-based plan may not adequately reflect these regional conditions. The new standard form creates a more consistent framework, but the quality of the forecasts still depends on current inspections, reliable cost estimates and regular review.

What South Coast committees should do

Confirm when the current 10-year plan was prepared and when it was last reviewed.

Check whether a revision or replacement is planned for the next AGM.

Ensure the prescribed form is used where the new requirement applies.

Compare the plan with recent repair history, inspection reports and current contractor pricing.

Review funding each year so foreseeable work does not automatically become an urgent special levy.

2. Stronger developer accountability for new strata schemes

The original owner, usually the developer, must prepare an initial maintenance schedule using the new standard form and provide it to the owners corporation at least 14 days before the first AGM.

For new multi-storey schemes, additional safeguards apply. The developer must engage an independent quantity surveyor to review and certify that the initial maintenance schedule was prepared using the required form. The surveyor must also review the initial estimates for the administrative fund and capital works fund and certify that they are adequate for the expected expenditure in the year following the first AGM, based on the expenses supplied by the original owner.

Evidence of the surveyor's independence and certification must also be supplied at least 14 days before the first AGM. NSW Government guidance states that penalties of up to $11,000 for an individual and $55,000 for a corporation may apply where the original owner does not comply.

These reforms are intended to reduce the risk that owners in a new development inherit unrealistically low levies or incomplete maintenance information. Buyers and first committees should still read the documents carefully, ask how the figures were calculated and compare the budget with the building's actual services and maintenance needs.

3. Updated Section 184 strata information certificates

A Section 184 certificate provides financial and other information about a lot and its strata scheme, often during a sale. From 1 April 2026, the approved certificate includes additional information that can help prospective purchasers better understand the scheme.

The certificate must now address:

Any exclusive supply network or embedded network supplying services such as electricity, gas, water, internet or other utilities.

Orders and certain compliance action against the owners corporation, including action connected with the duty to repair and maintain common property.

Meetings held during the previous year and any upcoming meetings.

This increased disclosure matters in coastal and regional markets where buyers may live outside the area and rely heavily on formal records. It also reinforces the need for committees and strata managers to maintain accurate meeting, contract, utility and compliance records throughout the year, not only when a property is listed for sale.

4. Stronger enforcement of common-property repair duties

The owners corporation's duty to maintain and repair common property is not new. What changed from 27 October 2025 is the level of regulatory oversight available when a scheme does not meet that duty.

NSW Fair Trading can investigate suspected failures, require documents and answers, enter premises in appropriate circumstances and take enforcement action. Available responses include enforceable undertakings, compliance notices, penalty infringement notices and applications to the NSW Civil and Administrative Tribunal. A Tribunal order may require rectification or, in serious cases, the compulsory appointment of a strata managing agent.

For South Coast schemes, this is a timely reminder that recurring roof leaks, unsafe balconies, concrete deterioration, stormwater failures, corrosion and other common-property problems should not remain indefinitely on a meeting agenda without a documented plan. Regional contractor shortages can affect timing, but the committee should still record the issue, obtain appropriate advice, manage immediate risks, identify funding and demonstrate reasonable progress.

The law also prevents an owners corporation from delaying a repair that creates a safety risk or affects access or use merely because it is pursuing another person for the damage. Owners now have six years, increased from two, to bring certain damages claims against an owners corporation for failure to maintain and repair common property.

5. New support and payment-plan rules for overdue levies

The 27 October 2025 reforms also introduced clearer protections for owners experiencing financial hardship. Levy notices must include, or be accompanied by, the prescribed Financial Hardship Information Statement.

An owner requesting a payment plan for overdue contributions must use the standard form. A plan may run for up to 12 months and cannot cover future levies. The owners corporation or strata committee must genuinely consider the request, cannot adopt a blanket policy refusing all payment plans and cannot charge the owner a fee for requesting or maintaining a plan.

A written response must be given within 28 days. If the request is refused, the response must provide reasons explaining how the refusal applies to that owner's circumstances. A refusal may be reasonable where the plan would leave the administrative fund or capital works fund unable to meet the scheme's expenses or repair obligations.

Debt recovery cannot proceed for the levies covered by a payment plan while the owner is complying with it. If recovery action is to be taken, at least 30 days' notice must be given. For committees, the practical balance is to support owners fairly while protecting the cash flow needed for insurance, utilities, maintenance and urgent work.

6. Greater strata manager transparency and accountability

Reforms introduced from February and July 2025 remain highly relevant in 2026. Strata managing agents must provide more information about connections with suppliers and developers, commissions, training services and other interests before appointment and during the agency term.

Insurance quotations must clearly itemise the base premium, GST, broker fees, commissions and who ultimately receives those amounts. A strata manager cannot receive an insurance commission where the owners corporation independently obtained and paid for the policy without the agent's assistance.

Agents must also report every six months on the functions they have exercised for the owners corporation. Certain management agreement terms are prohibited, including clauses requiring an owners corporation to indemnify the agent for professional indemnity liabilities, or limiting the agent's liability to a set amount unless an approved professional standards scheme applies.

Standard-form service contracts entered into, renewed or varied from 1 July 2025 are also subject to unfair contract term protections. This can apply to strata management, building management, cleaning, gardening and other service agreements. Committees should read the complete fee schedule, termination provisions, liability clauses, renewal mechanism and related-party disclosures before signing.

Essential Strata Management is independently owned and operated and does not accept commissions from insurers, contractors or tradespeople. This provides a clear, transparent foundation when recommendations and quotations are presented to an owners corporation.

7. New duties for strata committees and chairpersons

Committee membership carries real responsibilities. Reforms commencing on 1 July 2025 require committee members to act honestly and fairly, comply with their obligations and avoid conduct that unreasonably interferes with another person's use or enjoyment of their lot or common property. Information obtained through the committee role must only be used or disclosed where permitted by law or required to perform committee duties.

For volunteer committees, good governance does not need to be complicated. Decisions should be supported by proper agendas, clear motions, accurate minutes, declared conflicts and complete records. Instructions to the strata manager should come from authorised decision-makers, not individual owners acting without committee authority.

The NSW Government has also announced mandatory training for strata committee members during 2026. Its latest published guide, updated 10 June 2026, states that further commencement information will be provided before the requirement begins. Committees should monitor official updates rather than assuming the training is already compulsory.

8. Minor renovations, accessibility and sustainability

Several reforms change how schemes consider improvements to individual lots and common property.

If a committee refuses a minor renovation request, it must give written reasons within three months. If it does not, the request is automatically approved.

Accessibility infrastructure can generally be approved by a majority vote rather than a special resolution, making it easier to improve access for a person with disability.

By-laws that prohibit sustainability infrastructure because of external appearance are generally banned, except for heritage-listed buildings or schemes within a heritage conservation area.

Each AGM must consider environmental sustainability, including common-property energy and water consumption and expenditure.

Capital works estimates must consider the installation, replacement or repair of sustainability infrastructure such as solar panels, meters and other fixtures or fittings.

These requirements create opportunities for South Coast schemes to consider solar, efficient common-area lighting, water-saving measures and electric vehicle infrastructure. Committees should still assess structural capacity, electrical supply, insurance, maintenance responsibility, metering, cost allocation and any required by-law before approving work.

9. Fire-safety maintenance requirements from February 2026

Separate from the staged strata reform package, an important building-safety requirement commenced on 13 February 2026. NSW Government guidance states that apartment buildings must have applicable essential fire-safety systems inspected, tested and serviced in accordance with AS 1851-2012, unless a performance solution requires a different approach.

Committees should confirm that their fire contractor is working to the correct standard, that a physical logbook is maintained on site and that any follow-up rectification is completed by appropriately licensed practitioners. Most relevant buildings also require an annual fire safety statement, although exemptions can apply to some building classes, including many townhouses and villas.

This is particularly important for regional schemes because fire contractors may operate across large territories. Service bookings, access, logbooks and rectification should be planned early rather than left until the annual statement is due.

10. Changes still expected later in 2026

The NSW Government's published guide identifies two further measures expected during 2026:

Mandatory training for strata committee members.

Disclosure of exclusive supply networks in off-the-plan contracts for sale.

Until formal commencement details and supporting guidance are published, committees should treat these as upcoming requirements. A good strata manager should monitor official announcements, explain what applies to the scheme and update procedures and meeting papers when the law begins.

Why the changes matter on the NSW South Coast

The legislation applies across NSW, but regional schemes face distinct practical conditions. Many South Coast properties combine permanent residents, holiday homes, short-term accommodation and non-resident owners. Buildings can be exposed to salt, wind, heavy rainfall, vegetation and seasonal occupancy, while specialist builders, engineers, fire contractors and lift technicians may service several towns from one base.

These realities make planning and records especially important. A compliant capital works plan is most useful when it reflects local building condition and regional costs. A repair resolution is only effective when the contractor can access the site. A committee decision is easier to defend when the quotations, conflicts, authority and reasons are recorded. The reforms increase accountability, but they also give well-managed schemes a clearer framework for making sensible decisions.

A practical 2026 compliance checklist

Check whether the scheme's 10-year capital works fund plan is being revised or replaced and use the prescribed form where required.

For a new scheme, confirm the initial maintenance schedule and supporting documents were supplied on time and in the approved form.

Use the updated Section 184 certificate and maintain accurate embedded-network, meeting and compliance records.

Review outstanding common-property repairs, record priorities and document progress toward rectification.

Ensure levy notices and payment-plan procedures comply with the financial-hardship reforms.

Review the strata management agreement and major service contracts for disclosure, liability, renewal and unfair-term issues.

Confirm the strata manager's six-monthly reports and AGM disclosures are being provided.

Update committee procedures for conflicts, privacy, authorised instructions and written decisions.

Check fire-system servicing arrangements against AS 1851-2012 and confirm physical logbook requirements.

Monitor NSW Government announcements about committee training and further 2026 commencement dates.

How Essential Strata Management can help

Essential Strata Management provides local, responsive and independent strata management across the NSW South Coast and Far South Coast. Our local managers are backed by administration, accounting and senior strata support, helping committees understand their responsibilities and put decisions into action.

Cohen supports schemes across Batemans Bay, Moruya, Narooma and Bermagui, while Pauline and Karen support Merimbula, Bega and surrounding Far South Coast communities. Essential also assists owners corporations from Nowra, Jervis Bay, Milton, Mollymook and Ulladulla through to Tathra, Tura Beach, Pambula and Eden, with office and meeting capability in Batemans Bay and Merimbula.

Our support can include preparing compliant meeting papers, maintaining scheme records, coordinating capital works planning, arranging repair quotations, tracking contractor actions, issuing levy notices, administering approved payment plans and keeping committees informed about legislative changes. Owners also have access to an online portal, and our complimentary annual 30-minute building visit with photographs can provide valuable visibility for committees and non-resident owners.

If your owners corporation would like help reviewing its current management arrangements or preparing for the NSW strata law changes in 2026, contact Essential Strata Management to arrange an introductory discussion, local building visit or tailored strata management proposal.

Frequently asked questions

When did the main 2026 NSW strata law changes begin?

The current stage began on 1 April 2026. It introduced standard forms for revised or replacement 10-year capital works fund plans and initial maintenance schedules, as well as expanded Section 184 certificate information. Other reforms began in 2025 and continue to affect schemes in 2026.

Does every owners corporation need to replace its capital works plan immediately?

No. A scheme with an existing plan does not have to recreate it immediately. The standard form is required when the plan is revised or when a new plan replaces an existing plan that has been in place for 10 years.

What changed on Section 184 certificates?

The updated certificate includes information about embedded or exclusive supply networks, certain orders and compliance action involving the owners corporation, meetings held during the past year and upcoming meetings.

Can NSW Fair Trading force an owners corporation to carry out repairs?

Fair Trading now has stronger investigation and enforcement powers. Depending on the circumstances, it may seek an enforceable undertaking, issue a compliance notice or penalty, or apply to the Tribunal for orders.

Must an owners corporation accept every levy payment-plan request?

No, but it must genuinely consider the request, respond in writing within 28 days and give reasons for any refusal. A blanket policy refusing all payment plans is not permitted.

Is strata committee training already compulsory?

The NSW Government has announced mandatory training during 2026, but its guide updated 10 June 2026 stated that further commencement information would be provided before the requirement starts. Committees should monitor official updates.

What must strata managers now disclose?

Disclosure obligations include connections with suppliers and developers, commissions, training services, related interests and itemised insurance pricing. Agents must also provide six-monthly reports on the functions exercised for the owners corporation.

Do the fire-safety changes apply to every strata property?

The AS 1851-2012 servicing requirement applies to relevant essential fire-safety systems in apartment buildings, subject to any applicable performance solution. Some building classes, including many townhouses and villas, may not require an annual fire safety statement. The scheme should confirm its obligations with its practitioner or local council.

Authoritative references

The following official resources support the legislative and regulatory information in this article:

NSW Government - Guide to strata law changes for strata committees and owners

NSW Government - Section 184 certificate for strata schemes

NSW Government - Strata repairs and maintenance

NSW Government - Strata building repairs health check

NSW Government - Safety rules for strata common property

NSW Legislation - Strata Schemes Management Act 2015

General information only. This article is current to 19 August 2026 and is not legal advice. Strata legislation, commencement dates, official forms and individual scheme circumstances can change. Owners corporations should check current NSW Government guidance and obtain professional advice relevant to their circumstances.