How Collective Strata Renewal Works in NSW: The 75% Threshold Explained

Collective renewal of a NSW strata scheme does not require every owner to agree. Under Part 10 of the Strata Schemes Development Act 2015, the owners corporation puts a strata renewal plan to owners by special resolution (s 172), the plan needs the support of the owners of at least 75% of the lots in the scheme, and the plan must then be approved by the Land and Environment Court (ss 178-183).

Two details matter. The 75% is counted by number of lots, not unit entitlement, and utility lots (car spaces, storage and the like) are excluded from the count. Both come from the definition of “required level of support” in section 154 of the Act: “the support … of the owner or owners of at least 75% of the lots, other than utility lots, in the scheme.”

This is long-settled law, not a proposal. Part 10 commenced on 30 November 2016. It applies automatically to schemes registered on or after that date, and older schemes may resolve to opt in (Schedule 8, Part 2, clause 8). Dissenting owners can be required to sell, with compensation determined by the Land and Environment Court.

Sources: Strata Schemes Development Act 2015 (NSW), Part 10; NSW Registrar General, strata renewal process. Reviewed 17 August 2026.

The Government argues that complete consensus is a barrier to renewal, citing the need for urban consolidation. Transforming low-density strata schemes has been identified as a method to accommodate Sydney’s growing population and meet housing targets. Modern building practices and environmentally friendly innovations are also difficult—or too costly—to retrofit into older buildings.

Why the Change?

Fair Trading outlined its intentions in a discussion paper titled Making NSW No. 1 Again: Shaping Future Communities. It argued that:

“There is a strong argument for the ongoing renewal of some existing housing stock. Where land is held in single ownership an owner can renovate and update a building to ensure it meets environmental and aesthetic standards. Once a building has been strata subdivided this becomes much more difficult to achieve.”

The paper also noted that owners seeking renewal can currently be blocked by a single individual, preventing both residents and the wider community from benefiting from a modern redevelopment.

How Will Majority Rules Work?

Internationally, most legislation requires around 80% support to terminate a strata scheme. In NSW, discussions have focused on lowering that threshold to 75%.

The Sydney Morning Herald reported that if the laws take effect, the threshold will indeed be set at 75%. While this represents a clear majority, it also means that up to 25% of owners could be compelled to sell their homes as part of the process.

Safeguards for Owners

It is anticipated that safeguards will be introduced, such as:

• Independent valuations to ensure fair compensation
• An ‘extinguishment commissioner’ to hear appeals against unfair payments
• Options for affected owners to buy into the new scheme
• Assistance with temporary or permanent relocation

What This Means for Owners

If adopted, these reforms could make it easier for older strata schemes to be redeveloped, but they will also raise concerns about fairness and security for minority owners who may be forced to sell.