After years of consultation, the long-awaited NSW strata law reforms have been pushed back yet again. The delay, driven by political turnover and practical concerns, has frustrated many in the industry—but it may also be a blessing in disguise.

A Long Road to Reform

Strata reform discussions first began in 2011, with feedback sought from owners, tenants, agents, and industry groups. By 2013, round table meetings and a position paper had been released, covering common pain points like:

• By-law enforcement
• Smoking
• Pets
• Parking
• Anti-social behaviour

In 2014, the Hon. Matthew Mason-Cox MLC, then NSW Fair Trading Minister, announced that community title reforms would be fast-tracked, while strata reforms were put on hold to align both Bills. That means the earliest the legislation could be introduced would be post-election 2016.

Why the Delay Might Be a Good Thing

A draft Bill was accidentally released to the public in early 2014. The draft contained measures that attracted widespread criticism for being impractical or poorly thought through.

One example was the proposal to allow tenants to attend AGMs and elect a non-voting representative for the strata committee. While well-intentioned, the details were unworkable:

• Most owners corporations don’t receive complete tenancy records
• The Bill didn’t clarify how tenants would be notified of meetings
• Issuing notices to both owners and tenants would have doubled administrative costs
• No clear process was set for electing or rejecting tenant representatives

Draft Bill Proposals on Building Defects

The leaked Bill also introduced tough new measures around building maintenance and defects, such as:

• Original owners to provide a detailed maintenance schedule at the first AGM
• Mandatory provision of plans, certificates, and building diagrams
• A defects bond equivalent to 2% of construction costs for schemes without home warranty insurance
• A building defects report required within a narrow 12–18 month window
• Developers restricted from voting on defect-related motions

While many of these measures would have helped owners, the timelines and processes were seen as unworkable in practice.

The Road Ahead

The government now faces the complex task of balancing the needs of all stakeholders—owners, tenants, developers, builders, suppliers, and managers—while addressing the realities of modern multi-residential developments.

For now, the delay may allow for better consultation and more workable legislation. With multi-residential construction outpacing single dwellings, it’s critical that reforms are thorough, not rushed.