The NSW government has published a comprehensive guide for strata residents, incorporating new legal requirements effective February 2024 to enhance transparency around disclosure obligations.
The guide includes practical advice on key strata matters such as:
– Conducting meetings
– Managing emergency repairs
– Securing renovation approvals
– Resolving disputes
– Navigating relationships with the owners’ corporation and strata managers
Separately, NSW Fair Trading has released information for owners struggling with levy payments, detailing options that protect the financial health of strata schemes.
New legislation to be introduced in parliament will focus on clarifying strata management practices, particularly regarding levy notices and payment plan terms, ensuring fairness.
In recent updates, the government mandated improved disclosure of strata insurance costs and commissions, granted expanded regulatory powers to NSW Fair Trading, and increased penalties for non-compliance. Ongoing consultations aim to explore additional reforms.
An ABC investigation highlighted contentious clauses in strata management contracts, notably around commission levels, which have been criticized for restricting owners’ ability to secure competitive insurance. Tyrone Shandiman, Chair of the Australian Consumers Insurance Lobby, noted these clauses often appear buried in lengthy agreements, misleading owners into believing they are standard and fair. He emphasized the challenges posed by three-year strata contracts contrasting with annually renewed insurance policies, which limit flexibility.
Click here for the NSW Government’s Strata Living Guide website