Artboard 1Icon/UI/CalendarIcons/Ionic/Social/social-pinterestIcon/UI/Video-outline

Residential Focus: Latest stage of strata amendments drop

28 November 2025

21 min read

#Property & Development

Published by:

Brandon Thai, Nupur Garg

Residential Focus: Latest stage of strata amendments drop

In our previous article, we covered the Strata Schemes Legislation Amendment Act 2025, which introduced a wide range of reforms to the Strata Schemes Management Act 2015 and its equivalent for community associations, the Community Land Management Act 2021.

The amending legislation is being implemented in multiple stages, with some changes having come into force on the day of assent in March 2025, followed by a second set of changes on 1 July 2025.

The third and most recent changes, commenced on 27 October 2025, and include:

  • requiring owners corporations to offer a payment plan to owners who are falling behind on strata levy repayments prior to commencing debt recovery actions
  • requiring owners corporations to provide a Financial Hardship Information Statement to owners alongside each strata levy notice
  • introducing obligations and penalties for building managers to ensure that they act in the best interests of their clients, including disclosure requirements for any conflicts of interest or benefits received
  • broadening NSW Fair Trading’s powers, to allow it to issue compliance notices and enter enforceable undertakings with owners corporations that fail to repair and maintain common property. This is particularly significant, as it provides an alternative pathway to owners litigating at their own cost to compel an OC to repair serious defects.

The strata reform is broadly intended to give owners in strata schemes across NSW greater trust and confidence in how strata is regulated. Strengthening regulation supports the significant role played by strata in the NSW property landscape, particularly in the area of affordable housing.

Two more sets of changes from the Act are still anticipated to come into force in 2026, with the first scheduled to commence on 1 April 2026. These concern:

  • increasing long-term planning requirements for owners corporations
  • strengthening developer accountability for new strata schemes, including an obligation to prepare handover documents such as an initial maintenance schedule and estimates of expected contributions of administrative fund and capital works funds for the owners corporation
  • introducing mandatory training requirements for strata committee members
  • requiring exclusive supply networks (embedded networks) to be disclosed in off-the-plan contracts of sale.

A copy of the ministerial release can be found here.

Authors: Christine Jones & Brandon Thai

In the media

Multi-generational housing could be a solution to housing shortage, NSW inquiry hears.
Farmers and town planners say allowing more homes to be built on rurally zoned land could be one solution to help ease the housing crisis in New South Wales. A parliamentary committee has been tasked with investigating potential changes to planning laws to make it easier for landowners to build a second dwelling on their property. There are no uniform rules in regional areas regarding the development of secondary dwellings, which some councils allow. The committee is due to deliver its report on the planning reforms in February next year, but at a public hearing in Sydney this week, Hawkesbury-based town planner Troy Myers said demand for this type of housing was huge. Read more here.

 Muswellbrook bans dongas at renewable energy and construction project sites.
The council in a coal town facing an uncertain future is determined to force the developers of renewable energy and large-scale construction projects to leave behind a legacy of affordable housing. Muswellbrook Shire Council's temporary workforce accommodation policy bans donga-style worker camps in favour of permanent accommodation that can be reused once a project ends. The council is expecting almost 4,000 temporary workers to pass through in the next decade to work on renewable energy projects and the demolition of the retired Liddell Power Station. Mayor Jeff Drayton said integrating temporary workers into local life would be critical, so the policy also included a ban on any "wet mess" facilities for alcohol consumption. Read more here.

Dangerous flammable cladding still not removed from dozens of NSW high-rise apartment buildings.
Hundreds of families are still sleeping in dangerous apartment buildings, eight years after the Grenfell Tower fire prompted governments worldwide to crack down on flammable cladding. Data obtained under freedom of information reveals an NSW government-run scheme, which was meant to see combustible cladding removed from hundreds of apartment buildings by 2024, has only completed 30.In 2021 a statewide audit identified 338 "high-risk" apartment buildings and Building Commission NSW launched a scheme called Project Remediate. Read more here.

Builders face daunting mission to boost housing supply despite 'green shoots'
Builders say there are "green shoots" appearing in the rate of homes being built across Australia, but current construction remains well short of the target. As the industry chases the government target of 1.2 million new homes over five years, planning reforms, falling interest rates and the expansion of the federal 5 per cent Deposit Scheme are all boosting business for builders. But industry insiders and experts have told ABC News a combination of planning delays, skilled labour shortages and land prices stands in the way of solving Australia's housing crisis. The federal government has said its effort to build more homes is "bearing fruit", with the Bureau of Statistics reporting a 12 per cent rise in dwelling approvals in September, up close to 30 per cent from a low point in February 2024. Read more here.

In practice and courts

Have your say - Plan for the future of the Central Coast

The draft Central Coast Strategic Conservation Plan aims to support housing development while safeguarding the region's unique plants and animals. The plan will directly support around 14,000 new homes and 30,000 new jobs over the next 30 years, while protecting the Central Coast’s unique environment. It will identify which areas can be developed, and which areas must be protected. The plan will: provide upfront biodiversity approvals for development on certified urban capable land, make it easier and faster to build new homes and infrastructure, provide planning and investment certainty for developers and help protect the Central Coast’s unique environment into the future. The consultation period is open until 11 November 2025. Read more here.

Publication

HIA’s Plan to house Australia’s Growing population

The Housing Industry Association (HIA) strongly contends that the voice of regional Australia needs to come to the fore. They need to get a seat at the table on key decision making on the issues that matter to Australians going forward and not just assume that the ‘bush’ will follow along with decisions made on their behalf. There are 8.5 million Australians now living in regional Australia. This cohort is often underrepresented in the debate on population, migration, housing, GST distribution, infrastructure investment, the climate change debate and broader societal matters. Read HIA’s submission here.

 Revised methodology for the Australian Apprenticeship Priority List

 Housing Industry Association (HIA) provided a comment on the revised methodology for the Australian Apprenticeship Priority List.

 HIA acknowledges the Australian Apprenticeship Priority List (AAPL) is an important tool to enable government and industry to focus and prioritise those industries most in need of assistance. It is well established that Australia is in a national housing crisis and current housing forecasts showing that Australia is expected to fall at least 200,000 homes short of the Australian Government’s target to build 1.2 million new homes by 2029. To enable this level of home building, HIA estimates that the residential building industry trades workforce needs to increase by at least 30%. This means the industry needs over 83,000 additional trades workers to achieve the Governments home building target. Read more here.

Growing pipeline of housing approvals in NSW

New South Wales has recorded more than 50,000 new housing approvals in the past year – the first time since 2023 the state has reached this milestone – showing momentum growing in the NSW housing pipeline. According to the latest ABS data, housing approvals in NSW rose 23 per cent year-on-year, underpinned by a strong increase in low and medium density developments. This includes a 49.2 per cent increase in new apartment buildings. In September alone, seasonally adjusted construction approvals in NSW jumped 30.4%, from 3,680 dwellings in August to 4,800 dwellings – one of the largest monthly increases in the country. Read more here.

Good practice guide for implementing AS 1851-2012

This guide has been prepared by the New South Wales Fire Safety Industry Reference Group (FSIRG). The guide assists owners, regulators and contractors in implementing AS 1851-2012, the routine service of fire protection systems and equipment in the most effective way, and in accordance with the NSW fire safety regulatory framework. Access the guide here.

Inquiry into workers compensation legislation amendment bill 2025 and the provisions of the workers compensation legislation amendment (reform and modernisation) bill 2025

These submissions relate to the Workers Compensation Legislation Amendment (Reform and Modernisation) Bill 2025 (Reform and Modernisation Bill) tabled on 6 August 2025 and which became publicly available on 7 August 2025. Specifically, the Master Builders Association of NSW (MBA) wishes to raise a number of concerns with respect to various elements of the Reform and Modernisation Bill. Read more here.

Cases

Ace Homes & Construction Pty Ltd v Su [2025] NSWCATAP 283
APPEALS – adequacy of reasons

Civil and Administrative Tribunal Act 2013 (NSW), 22 78, 80; cl 12 of Sch 4; Civil and Administrative Tribunal Rules 2014 (NSW), r 25; Home Building Act 1989 (NSW), ss 18B, 18 BA

Kapila v Monument Building Group Pty Ltd [2025] NSWSC 130
BUILDING AND CONSTRUCTION – Contract – Implied terms – Statutory warranties under s 18B of Home Building Act 1989 (NSW) – Whether building work complied with Building Code of Australia (BCA) – Where under BCA different standards relating to waterproofing exists depending on correct classification of given room as ‘habitable’ or ‘non-habitable’ – Meaning of ‘habitable’ under the BCA

NEGLIGENCE – Duty of care – Non-delegable duty – Whether claim for breach of statutory duty under s 37 of Design and Building Practitioners Act 2020 (NSW) (DBPA) is apportionable under Part 4 of Civil Liability Act 2002 (NSW) where there has been no delegation of works to third parties – Consideration of Pafburn Pty Ltd v Owners – Strata Plan No 84674 (2024) 99 ALJR 148; [2024] HCA 49 and The Owners – Strata Plan No 84674 v Pafburn Pty Ltd (2023) 113 NSWLR 105; [2023] NSWCA 301

NEGLIGENCE – Defences – Contributory negligence – Whether defence of contributory negligence applicable to breach of statutory duty under s 37 DPBA – Whether defence made out on the facts

Civil Liability Act 2002 (NSW); Design and Building Practitioners Act 2020 (NSW); Environmental Planning and Assessment Act 1979 (NSW); Environmental Planning and Assessment Regulation 2000 (NSW); Home Building Act 1989 (NSW); Law Reform (Miscellaneous Provisions) Act 1965 (NSW)

Reeves v Icon Group Constructions Pty Ltd and Bazzi [2025] NSWCATCD 129
HOME BUILDING – meaning of “if it is constructed for use in conjunction with a dwelling” in Schedule 1 clause 3(2) of the Home Building Act – breach of statutory warranty – major defect – Design and Building Practitioners Act 2020 – section 37 duty to exercise reasonable care

Home Building Act 1989 (NSW); Design and Building Practitioners Act 2020 (NSW); Civil and Administrative Tribunal Act 2013 (NSW)

Ceerose Pty Ltd v The Owners – Strata Plan No 89074 [2025] NSWCA 235
CONTRACTS – remedies – damages – mitigation of loss – whether conduct was unreasonable in the circumstances such that some or all of the claimed loss should be disregarded – legal and evidentiary onus on the party asserting a failure to mitigate – no “positive obligation” to provide builder an opportunity to rectify damage – invocation of a “shifting” or “tactical onus” misconceived and should be avoided

CIVIL PROCEDURE – alternative dispute resolution – court referral to referee – claimed denial of procedural fairness – no procedural unfairness established

Home Building Act 1989 (NSW), ss 18B, 18BA; Uniform Civil Procedure Rules 2005 (NSW), r 20.24

Hawach v A & A Building Services Pty Ltd [2025] NSWSC 1174
BUILDING AND CONSTRUCTION – leave to appeal from determination of the New South Wales Civil and Administrative Tribunal Appeal Panel – alleged contract with defendant to carry out or to arrange to carry out a range of building works – where defendant assisted the plaintiffs by recommending subcontractors to them and allowed the plaintiffs to use the defendant’s trade account to order materials – whether the Appeal Panel constructively failed to exercise jurisdiction in finding there was no evidence that there was a term of a contract that the defendant would provide a waterproofing certificate – whether Appeal Panel erred in law in finding that the Home Building Act 1989 (NSW) did not preclude the defendant’s entitlement to set off – principles applicable to partly oral contracts

APPEAL – leave to appeal from determination of the New South Wales Civil and Administrative Tribunal Appeal Panel – scope and construction of contract – post-contractual conduct – whether the Appeal Panel erred in law by failing to correctly apply the principles in relation to post-contractual conduct

Civil and Administrative Tribunal Act 2013 (NSW), s 83; Design and Building Practitioners Act 2020 (NSW), s 36; Home Building Act 1989 (NSW), ss 7, 10, 18B, 92

The Owners Strata Plan No 87881 v Frasers Broadway Pty Ltd [2025] NSWSC 1073
SUMMARY DISPOSAL – owners of high-rise development bring four proceedings against developers, builder and others for building defects – building work rectification order issued to developers under Residential Apartment Buildings (Compliance and Enforcement Powers) Act 2020 (NSW) – owners commence fifth proceedings against developers only seeking declaratory relief in respect of rectification method to comply with order – cost of rectification may be $37M – whether declaration ‘purely hypothetical’ – principles at [79]-[81] – multiplicity of proceedings – multiplicity of legal representation – principles at [93]-[99] – potential inconsistent findings and affected parties not bound by any declaration – whether an abuse of process – whether proceedings should be dismissed, stayed or case managed with related proceedings – proceedings dismissed.

Civil Procedure Act 2005 (NSW), ss 56, 67, 91; Design and Building Practitioners Act 2020 (NSW), s 22; Environmental Planning and Assessment Act 1979 (NSW), s 9.34; Residential Apartment Buildings (Compliance and Enforcement Powers) Act 2020 (NSW), ss 28, 33, 34, 39, 43; Uniform Civil Procedure Rules 2005 (NSW), r 13.4(1)

KASE INDUSTRIES PTY LTD v REVILL (Appeal) [2025] ACAT 78
APPEAL – Civil dispute – where Original Tribunal awarded damages for breach of contract for supplying and installing concrete driveway to property in New South Wales – where company supplying and installing concrete was registered in the ACT and had its principal place of business in the ACT – whether Original Tribunal erred in assuming that tribunal has jurisdiction to determine claim – whether Original Tribunal denied the appellant procedural fairness – whether contractual term, “colour to be matched as best possible,” is void for uncertainty – whether leave should be granted to appellant to raise new arguments on appeal – whether Original Tribunal erred in measure of damages awarded

ACT Civil and Administrative Tribunal Act 2008, ss 15, 16, 17, 22, 82;Home Building Act 1989 (NSW), Schedule 1, cl 2 and 3;Magistrates Court Act 1930, s 262

Reed v Brown [2025] NSWCATAP 250
BUILDING and CONSTRUCTION – HOME BUILDING – COSTS – Calderbank offers – reasonableness of rejection – APPEALS – challenge to discretionary decision – question of law – errors of law and of fact – re-exercise of discretion

Civil and Administrative Tribunal Act 2013 (NSW);Civil and Administrative Tribunal Rules 2014 (NSW);Home Building Act 1989 (NSW);Supreme Court Act 1970 (NSW) s 101(2)(c);Uniform Civil Procedure Rules (UCPR) r 20.26(2)(c), Pt 42 Div 3

Berhan v Westacres Property Consultants Pty Ltd t/as Divine Homes [2025] NSWCATCD 103
BUILDING AND CONSTRUCTION – Home Building Act 1989 (NSW) – building dispute

BUILDING AND CONSTRUCTION – contract – termination

Home Building Act 1989 (NSW);Corporations Act 2001 (Cth)

Sharma v Premutico [2025] NSWCATCD 101
BUILDING and CONSTRUCTION – HOME BUILDING – identity of builder – correct revision of contract - refund of alleged overpayment – alleged defective works – work or money order

Home Building Act 1989 (NSW);Home Building Regulation 2014 (NSW)

Gordon v We Build Australia Pty Ltd [2025] NSWCATCD 93
BUILDING and CONSTRUCTION

Home Building Act 1989

Miles v Buildfix Group Pty Ltd [2025] NSWCATAP 260
BUILDING AND CONSTRUCTION – meaning of the implied warranties under ss 18B(1)(e) and (f) of the Home Building Act 1989 (NSW) – whether expanded scope or application by reason of giving the Home Building Act 1989 (NSW) a purposeful or beneficial interpretation

Civil and Administrative Tribunal Act 2013 (NSW), ss 60, 80; cl 12 of Sch 4;Civil and Administrative Tribunal Rules 2024 (NSW), rr 38, 38A;Civil Procedure Act 2005 (NSW);Home Building Act 1989 (NSW), ss 18B, 18F;Interpretation Act 1984 (WA), s 18

Saad v The Owners - Strata Plan No 75928 [2025] NSWCATCD 108
REAL PROPERTY – STRATA MANAGEMENT – removal of strata committee and appointment of compulsory strata manager – Strata Schemes Management Act 2015 (NSW) ss 37, 102, 237, 238

Strata Schemes Management Act 2015 (NSW);Strata Schemes Management Regulation 2016 (NSW)

The Owners – Strata Plan No 63517 v Titles Strata Management Pty Ltd [2025] NSWCATCD 112
LAND LAW – strata title – strata managing agent – effect of s 50 term of appointment expiring – agent continued to provide services – reasonableness of fees

CONTRACTS – formation – implied contract – expired strata managing agent agreement

ESTOPPEL – estoppel by convention – mutual assumption

Civil and Administrative Tribunal Act 2013 (NSW);Civil and Administrative Tribunal Rules 2014 (NSW);Home Building Act 1989 (NSW);Strata Schemes Management Act 2015 (NSW)

Bergman v Hobbs Plumbing and Drainage Company Pty Ltd [2025] NSWCATCD 106
BUILDING AND CONSTRUCTION – contract – defects – work order

Home Building Act 1989 (NSW)

Civil and Administrative Tribunal Act 2013 (NSW);Community Land Management Act 1989 (NSW)

Akdogan v The Owners - Strata Plan No 55665 [2025] NSWCATCD 114
CIVIL PROCEDURE – summons to produce – application to set aside and amend – legitimate forensic purpose – privilege – whether divergent interests

Civil and Administrative Tribunal Act 2013 (NSW);Civil Liability Act 2002 (NSW);Home Building Act 1989 (NSW);Strata Schemes Management Act 2015 (NSW)

AGC Roof Maintenance Pty Limited v The Owners Corporation of Strata Plan 7704 [2025] NSWCATCD 116
BUILDING CLAIM – non-payment of invoice – breach of contract

Home Building Act 1989 (NSW)

The Owners - Strata Plan 69205 v Community Association DP 270244 (No. 3) [2025] NSWCATCD 105
COSTS – Party/Party – where the applicant applied to the Tribunal for the exercise of jurisdiction under both a referral from an Adjudicator pursuant to s 71B of the Community Land Management Act 1989 (NSW) and in the original jurisdiction conferred on the Tribunal by the Civil and Administrative Tribunal Act 2013 (NSW) – where the Tribunal made a decision and gave orders in both jurisdictions – where the Tribunal at first instance made a single costs order without distinguishing the jurisdictions in which the cost order was made – where on appeal the Appeal Panel determined that the Tribunal did not have power to make a costs order in connection with the referred jurisdiction – where the Appeal Panel remitted the decision on costs for re-consideration by the Tribunal in its original jurisdiction only – order made for the dismissal of the application for costs.

Civil and Administrative Tribunal Act 2013 (NSW);Community Land Management Act 1989 (NSW)

Abdallah v Paco Nominees Pty Ltd [2025] NSWSC 1267
APPEALS – appeal from a decision of the NCAT Appeal Panel from a decision of NCAT where the plaintiff became self-represented after a failed adjournment application – whether the plaintiff’s self-represented status was given sufficient consideration – whether a constructive failure to exercise jurisdiction where fresh evidence was not admitted by the Appeal Panel – whether the correct test for the admissibility of fresh evidence was considered by the Appeal Panel

Australian Constitution, s 75(v);Civil and Administrative Tribunal Act 2013 (NSW), ss 36, 38, 80, 83, cl 12 Schedule 4;Home Building Act 1989 (NSW), s 18B, s 48MA;Uniform Civil Procedure Rules 2005 (NSW), r 50.16A

Huang v Champion Homes Sales Pty Ltd [2025] NSWCATAP 271
APPEAL – Home Building – Australian Consumer Law claims – claims about unconscionable conduct and unfair contract terms – whether Amended Grounds of Appeal raise questions of law – grounds not established – appeal seeks to raise new claims

Australian Consumer Law (NSW);Civil and Administrative Tribunal Act 2013 (NSW);Civil and Administrative Tribunal Rules 2014 (NSW);Competition and Consumer Act 2010 (Commonwealth);Contracts Review Act 1980 (NSW);Environmental Planning and Assessment Act 1979 (NSW);Environmental Planning and Assessment Regulations 2000;Fair Trading Act 1997 (NSW);Government Information (Public Access) Act 2009 (NSW);Home Building Act 1989 (NSW);Legal Professional Uniform Law 2014 (NSW);NCAT Procedural Direction 7 – Use of Generative Artificial Intelligence (Gen AI).

Murray v Insurance and Care NSW t/as iCare [2025] NSWCATCD 131
BUILDING AND CONSTRUCTION – Home Building Act 1989 (NSW) – building dispute – jurisdiction – NSW Civil and Administrative Tribunal Consumer and Commercial Division – jurisdiction and powers – whether a claim by a building owner for a refund of insurance premium paid by a builder for compulsory home building compensation insurance is a “building claim”

Civil and Administrative Tribunal Act 2013 (NSW);Fair Trading Act 1987 (NSW);Home Building Act 1989 (NSW);NSW Self Insurance Corporation Act 2004 (NSW);Home Building Regulation 2014 (NSW)

Legislation

Regulations and other miscellaneous instruments

Environmental Planning and Assessment Amendment (Planning Proposal Authority) Regulation 2025 (2025-556) – published LW 17 October 2025

Strata Schemes Legislation Amendment (Commencement) Regulation 2025 (2025-558) – published LW 17 October 2025

Environmental Planning and Assessment (Development Certification and Fire Safety) Amendment (Building Sustainability Index Certificates) Regulation 2025 (2025-587) – published LW 31 October 2025

Fair Trading Amendment (Penalty Notice Publications) Regulation 2025 (2025-581) – published LW 29 October 2025

Environmental Planning Instruments

Bega Valley Local Environmental Plan 2013 (Amendment No 49) (2025-559) – published LW 17 October 2025

Canterbury-Bankstown Local Environmental Plan 2023 (Amendment No 10) (2025-560) – published LW 17 October 2025

Hornsby Local Environmental Plan 2013 (Map Amendment No 6) (2025-561) – published LW 17 October 2025

Mid-Western Regional Local Environmental Plan 2012 (Map Amendment No 16) (2025-562) – published LW 17 October 2025

Parkes Local Environmental Plan 2012 (Amendment No 10) (2025-564) – published LW 17 October 2025

Parkes Local Environmental Plan 2012 (Amendment No 9) (2025-563) – published LW 17 October 2025

State Environmental Planning Policy (Planning Systems) Amendment (Independent Planning Commission Referral Criteria) 2025 (2025-565) – published LW 17 October 2025

State Environmental Planning Policy Amendment (Explorer Street Eveleigh) 2025 (2025-566) – published LW 17 October 2025

State Environmental Planning Policy Amendment (Macarthur Gardens North Affordable Housing Area) 2025 (2025-567) – published LW 17 October 2025

Sydney Local Environmental Plan Amendment (Eastern Harbour City) 2025 (2025-568) – published LW 17 October 2025

Upper Lachlan Local Environmental Plan 2010 (Map Amendment No 3) (2025-569) – published LW 17 October 2025

Wollongong Local Environmental Plan 2009 (Map Amendment No 10) (2025-570) – published LW 17 October 2025

Yass Valley Local Environmental Plan 2013 (Amendment No 19) (2025-571) – published LW 17 October 2025

Ballina Local Environmental Plan 2012 (Map Amendment No 10) (2025-572) – published LW 24 October 2025

Bellingen Local Environmental Plan 2010 (Map Amendment No 5) (2025-573) – published LW 24 October 2025

Blacktown Local Environmental Plan 2015 (Map Amendment No 5) (2025-574) – published LW 24 October 2025

Blue Mountains Local Environmental Plan 2015 (Amendment No 21) (2025-575) – published LW 24 October 2025

Campbelltown Local Environmental Plan 2015 (Amendment No 44) (2025-576) – published LW 24 October 2025

Ku-ring-gai Local Environmental Plan 2015 (Amendment No 40) (2025-577) – published LW 24 October 2025

Port Stephens Local Environmental Plan 2013 (Amendment No 45) (2025-578) – published LW 24 October 2025

Richmond Valley Local Environmental Plan 2012 (Map Amendment No 3) (2025-579) – published LW 24 October 2025

Tweed Local Environmental Plan 2014 (Map Amendment No 3) (2025-580) – published LW 24 October 2025

Disclaimer
The information in this article is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, we do not guarantee that the information in this article is accurate at the date it is received or that it will continue to be accurate in the future.

Published by:

Brandon Thai, Nupur Garg

Share this