Published on: February 2025
Record: HANSARD-1323879322-149073
Strata Schemes Legislation Amendment Bill 2024
Second Reading Debate
Debate resumed from 20 November 2024.
Mr TIM JAMES (Willoughby) (14:57:12):
I rise to lead for the Opposition on the Strata Schemes Legislation Amendment Bill 2024. This bill amends the Strata Schemes Management Act 2015, the Community Land Management Act 2021 and related legislation to implement, we understand, 37 recommendations from the 2021 statutory review of the Strata Schemes Development Act 2015 and the Strata Schemes Management Act 2015—a report gone about, I might say, in very thorough fashion during the life of the then Coalition Government. The purpose and intent, no doubt—which we broadly share, by the way, on this side of the House—of this bill is to increase owner corporation protection, uplift developer and strata managing agent professionalism, ensure owners properly maintain their building, strengthen the governance of strata committees and, overall, make community living better and easier for residents. It is the second tranche of reforms that we have seen in recent times.
There are, of course, a great many stakeholders involved in strata communities. There are over 1.2 million residents of the great State of New South Wales who live in strata. I understand that that could indeed, as a proportion, reach half the State's residents by about 2040. It is an important area for policymakers and for reform. With all due respect, I point out that the report of the statutory review of 2021 had been on the table for some time. In so many ways, the work had been done. There had been thorough consultation. In a sense, the homework was done. This Government has taken almost two years to get to this point but here we are, and the Coalition is in broad agreement with the bill. But, as a matter of process, it need not have taken two years to get to this point.
What does the bill implement? In short, the bill implements a number of measures to strengthen developer accountability by requiring an initial maintenance schedule and initial levy estimates to the administrative fund and capital works to be certified. It increases penalties for developers who fail to meet these obligations and who fail to hold a first annual general meeting. It supports sustainability infrastructure and accessibility infrastructure uptake by prohibiting by-laws that prevent the installation of sustainability infrastructure solely on appearance. It requires owners' corporations to consider sustainability at each annual general meeting and when preparing estimates for capital works funds, making it easier for an owners' corporation to pass accessibility infrastructure resolutions.
Among other elements are lowering the voting threshold for sustainability infrastructure to make it easier for strata communities to install solar panels, battery storage and electric vehicle charging stations. It strengthens accountability for strata managers by requiring disclosure of commissions and financial benefits received from third parties, increasing transparency and reducing potential conflicts of interest. It introduces a statutory duty for strata committee members to act in the best interests of an owners' corporation, bringing governance standards closer to those in the corporate sector. It improves consumer protections by prohibiting unfair contract terms and increasing disclosure requirements in strata agreements, ensuring owners are not locked into one-sided contracts. It also enhances the role of the NSW Civil and Administrative Tribunal in resolving strata disputes in seeking to make the process fairer for all involved.
I take a moment to recognise and express appreciation to the many stakeholders who over many years have contributed and sought to advocate for strata reform, including, perhaps most notably, the Owners Corporation Network that, on behalf of strata residents, has consistently pushed for stronger consumer protections and fairer governance for all apartment owners and indeed residents. I acknowledge the role of the Strata Community Australia in representing strata managers and wish to recognise its engagement in this process and that of many other stakeholders. It is a long list, and I will not go through them all. Those stakeholders have broadly welcomed the changes in the bill, and the Coalition in turn welcomes them.
It should be said that there is more to do. We have not yet seen a complete resolution of all the recommendations of the late 2021 statutory review. As strata keeps growing, moving and evolving, there is a need for a greater future focus and bigger and more significant reform. It is now the job of the Government to get on with strata reform to deliver for communities and residents across New South Wales. Having said that, I acknowledge the Minister and his team for their work on this bill. Whilst I have certainly expressed concern about the pace and to some degree the scope of reform, the Coalition certainly appreciates the consultation undertaken with industry and community stakeholders. I again thank the many strata residents, owners and professionals who continue to engage for improvements. The Coalition looks forward to continuing to engage in that process as we strive forward together for better strata communities across New South Wales. I commend the bill to the House.
Mr GREG WARREN (Campbelltown) (15:03:11):
I am delighted to make a brief contribution to debate of the Strata Schemes Legislation Amendment Bill 2024. The object of the bill is to amend the Strata Management Act 2015, the Community Land Management Act 2021 and related legislation to implement 37 recommendations from the 2021 report of the statutory review of the Strata Schemes Development Act 2015 and the Strata Schemes Management Act 2015, to increase owners' corporation protections, uplift developer and strata managing agent professionalism, ensure owners properly maintain their building, strengthen the governance of strata committees and overall make community living better and easier for residents.
At the outset, I acknowledge the relevant Ministers, Anoulack Chanthivong and Jihad Dib, and their teams for their conscientious work in bringing the bill to the House to ensure we adopt a progressive approach with regard to strata legislation more broadly, and as the Government's second tranche of reforms from the 2021 report. The bill will implement reforms to strengthen developer accountability by requiring an initial maintenance schedule and the initial levy estimates of the administrative fund and capital works fund to be independently certified, and by increasing penalties for developers who fail to meet their new obligations and failing to hold a first annual general meeting in the required time.
Members of this House know that I commonly do not read from notes. However, this legislation is very specific. I think it is important for interpretation that, when the legislation comes before the judiciary, judges are able to refer very specifically to its provisions. Firstly, I note that the Minister was very specific in the bill's many and varied reforms because the intention of this legislation is outlined in the content of the bill. It supports the sustainability infrastructure and accessibility infrastructure uptake will be by prohibiting by-laws that prevent the installation of sustainability infrastructure solely on appearance, except where heritage listed or within a heritage conservation area, requiring owners' corporations to consider sustainability at each annual general meeting and when preparing estimates for the capital works funds to make it easier for an owners' corporation to pass accessibility infrastructure resolutions. That point is particularly relevant because it has been a flaw within the industry and in legislation for some time. The bill is an indication that this Government and the relevant Ministers, particularly Minister Chanthivong, have taken a very progressive and enthusiastic approach to fill the current legislation's voids.
The bill is important but, as the Minister said, it introduces just a tranche of the work that needs to be done to respond to the report. Government members are happy to say that we are working progressively, productively and pragmatically while recognising that there is so much more to do. The Minister and the Government have been very clear about that. The bill provides for uplift strata professional services to improve owners' confidence by prohibiting certain unfair terms in strata management agreements. It requires strata managing agents to report every six months to the owners' corporation on the functions they exercise, adding a new statutory duty for building managers to act in owners' corporations best interests, and adding a new ground to terminate strata managing agents and building manager agreements if they carry on a business in a way that is contrary to law. It will improve the governance of strata committees by imposing additional duties on strata committee members and prescribing training requirements for committees that require strata committees to provide written reasons for refusing minor renovation requests within three months of the application, and by providing deemed approval if they fail to do so.
This legislation is very much about tightening laws; it is not just about legislative reform. It is about making strata committees more accountable and about adding a fairer balance in the committees. This will put the interests of the tenants at the level of attention that they not only need but also deserve. This legislation is a positive step in that direction. The bill will require owners' corporations to maintain and repair common property by enabling NSW Fair Trading to enter into enforceable undertakings with owners' corporations, or to issue compliance notices when owners' corporations have not met their duties under the Act of maintaining the building, and by restricting the ability of an owners' corporation to defer building works if safety or amenity is affected.
The bill prescribes requirements for a 10-year capital works fund plan and requires the initial plan to consider the initial maintenance schedule. The bill also extends the two‑year limit on damages claims by lot owners to six years and implements reforms to protect owners' corporations against unfair contract terms by prohibiting them in line with Australian Consumer Law. It also improves protections for owners and prospective owners around embedded networks by removing the exemption for embedded electricity supply contracts so that three‑year term limits apply, clarifies the definition of "utility" to apply to a range of communication and domestic services, and adds new conveyancing disclosure requirements around embedded networks—which is an important process, particularly when it comes to interpreting the Act and the intention of the legislation. The conveyancing process clearly strikes the right balance as to what is required to ensure that all parties are aware of their obligations and requirements.
The bill assists owners in financial hardship by requiring levy notices to be accompanied by information approved by NSW Fair Trading, such as contact details for the National Debt Helpline and encouraging early action by lot owners in financial hardship. It introduces safeguards for owners who are experiencing financial hardship, such as requirements around payment plans and applying arrears payments to levies first, followed by interest and debt recovery expenses, and increasing the notice of debt recovery action from 21 days to 30 days. That is a particularly important part of the legislation because I believe many people continue to navigate their way through financial hardship brought about by the cost of living in today's economy. We need to be very prudent. Whilst people need to pay their bills, we can amend legislation to ensure that there is fairness in times of hardship. This provision is a positive step in that direction. Finally, the bill introduces other minor changes to improve its operation.
In conclusion, considerable stakeholder consultation was undertaken in November 2022 and February 2024 on options to help inform drafting of the bill, and an additional four-week consultation from September to October 2024 informed the final bill. A number of external stakeholders provided submissions on the bill, but I particularly note the Australian Resident Accommodation Managers Association, the Financial Rights Legal Centre and the Law Society of New South Wales, amongst many others. The Minister and his team had extensive internal consultation with all members across the aisle, receiving feedback to ensure that we put good legislation in place that finds the right balance and helps those living in strata accommodation. I thank all my colleagues who were involved, particularly the relevant Ministers and their staff, for their hard work on this detailed and complex bill over an extended period. I give them credit for bringing this bill to the House. I hope the bill passes quickly so that the required improvements can be implemented for those who operate within the strata process. I commend the bill to the House.
Mr ALEX GREENWICH (Sydney) (15:13:12):
I support the Strata Schemes Legislation Amendment Bill 2024. Strata is the fastest growing form of housing in the State and the laws that govern how strata communities are managed need continual review and reform. Over 80 per cent of my constituents, my husband and I and all my staff live in apartments. Living in an apartment has significant benefits. Apartments can provide supportive communities within buildings and within densely populated neighbourhoods like Potts Point, Elizabeth Bay and Pyrmont. Apartment buildings are often located close to jobs, facilities and services and can provide a low‑maintenance form of living. While apartments can have less upkeep, there are many challenges that need to be addressed before they can deliver affordable and sustainable homes. The complexity of managing common property among multiple owners can create significant demands, particularly on volunteer committee boards.
Owners' corporations are experiencing a big rise in their obligations and costs, creating major burdens for committee members. Defects remain a major drain. The Building Commissioner has improved the building industry but there is still a long way to go. Strata communities continue to struggle to get builders to comply with rectification orders and are having to spend thousands on legal action to protect themselves. For older buildings, repairs and maintenance have become more complex, with the need to submit a regulated design. Where once buildings could engage remedial builders and contractors directly, they now need an engineer or architect to oversee the project and submit a regulated design. There are reports that the added oversight is both improving remedial outcomes and adding unnecessary red tape and costs. When buildings have defects or need major repairs and maintenance, a building will struggle to get affordable insurance. The massive increase in insurance premiums makes it even harder for buildings to raise enough funds to get buildings fixed whether for lawyers and experts to pursue builders and developers, or for engineers, architects, builders and contractors to undertake repairs and maintenance.
Rising strata costs are now putting large numbers of owner‑occupiers at risk of homelessness, and the problem is set to get worse. Assessment by Financial Counselling Australia shows that unpaid strata levies are the greatest cause of forced bankruptcy in the State, making up 16 per cent to 20 per cent of all cases in court. It is untenable that the fastest growing form of housing can be the biggest risk of forced bankruptcy and potential homelessness. The bill takes some steps to address the problem by introducing requirements for levy notices to include approved information such as debt helplines and delegating the consideration of payment plans to the strata committee so that a general meeting does not need to be called. However, these changes are not enough. Owners may not even have the option for a payment plan and, if they do, payment plans can be unreasonably refused. Some strata managers engage in very predatory tactics with owners experiencing debt, engaging lawyers and debt collectors, and quickly adding their charges and interest to the owner's ledger.
I understand from Financial Counselling Australia, the Financial Rights Legal Centre and the Marrickville Legal Centre that forced bankruptcies are often the result of small debts that grow as a result of escalating fees. I foreshadow that I will move amendments to strengthen protections in the bill around payment plans and debt charges. The bill empowers the secretary to enter a building to investigate defects, repairs and maintenance on common property that an owners' corporation has failed to fix. Owners' corporations have an obligation to maintain common property and I acknowledge that there are circumstances when the secretary will need powers to enforce that obligation. The Owners Corporation Network has raised concerns that the powers in the bill exclude natural justice and include fines that could deplete owners' corporations of funds that could be spent on fixing the problem.
I share its view that owners' corporations should be given the opportunity to respond before the secretary enters common property and does investigative work such as demolishing walls. Where powers include entry into a home, residents should be given the opportunity to be present with a support person and the owners' corporation should have the opportunity to be present for access to common property. Fines for not providing documents or answering questions are too high and do not recognise that technical information is not always easily accessible and that it is stored with the strata managers who, due to competing demands, may not be able to meet the secretary's request—which is something owners should not be penalised for. The reasons that owners' corporations are not doing repairs and maintenance are complex and not simply refusable. Reforms need to be sensitive to barriers like significant and rising costs, and I will monitor how the new powers are used.
I support the introduction of mandatory training for committee members. Committees make decisions on expenditure, services, works, contracts and how to deal with day-to-day and long‑term problems. A competent strata manager can help them navigate the complexities but that is not always the case. Committees will function better if all members understand their roles and responsibilities and the rights of owners. I understand that the regulations will determine the training provided. It is important that it does not become a barrier to committee membership and is free, accessible and not unnecessarily demanding. Access through electronic courses is preferable. The Government should work with the Owners Corporation Network to develop modules because it has the expertise and a large network of owners to draw feedback from. I am concerned that the laws may result in committee members being thrown off committees, causing disruption and roadblocks to decisions, just because they were unable to do the training in time. I will move amendments at another stage to ensure members are not subject to dismissal without warnings and flexibility.
Passing motions to get outcomes can be a challenge in some buildings, with competing priorities among owners. I welcome the provisions in the bill that facilitate the installation of accessibility infrastructure by lowering the approval threshold. The State urgently needs more accessible homes. People who can live independently with modest upgrades are being forced into facilities for assisted living because of barriers to making changes to their homes and the lack of available accessible homes. This bill will enable approval for accessibility infrastructure with majority support, rather than by special resolution, making approval much more likely. Much more action is needed to make more homes accessible so more people can live independently. I urge the Government to adopt the National Construction Code Silver Liveable Housing Design Standard.
To encourage the uptake of sustainability infrastructure, the bill will require owners' corporations to consider sustainability measures as part of capital works plans and prohibit bans on sustainability infrastructure based purely on the external appearance of the building. These are good reforms. However, they do not address the real barriers to adopting sustainability infrastructure. Many strata communities want to electrify their buildings. However, the process can be complex, especially in larger buildings. For example, heat pumps for hot water systems can be approved with majority support. However, additional infrastructure is needed if a building has metered hot water for each apartment. The meters measuring hot water use are owned by the individual apartment owners, and it remains unclear whether an owners' corporation can resolve to have them all replaced. If one owner objects, the whole project is doomed. We urgently need reform to ensure buildings can take the steps needed to become sustainable with government support.
Extension of time
Clarifications that building managers have a duty of care towards the owners' corporation are welcome. However, the provisions fail to capture the possible harm that building managers can cause if they work to benefit themselves. Building managers are responsible for large sums of money. They engage contractors and service providers and facilitate defect maintenance and repair. They can work contrary to the owners' corporation through, for example, commissions or by working with developers to prevent action on defects. []
Building managers need the same oversight and obligations as strata managers. I ask the Minister to confirm in his reply that the Government will strengthen the laws governing building managers to protect owners. Strata contracts with strata managers and building managers are usually based on industry samples, which favour managers, not builders. The Government should develop model contracts that are used as a basis for negotiations and that support a better deal for owners. I will move an amendment at a later stage to empower the secretary to issue model contracts. I share the concern of the Owners Corporation Network that people are accessing contact details for owners when they inspect documents. I understand that there have been instances when contact details have been inappropriately used to contact all owners. No-one but a strata manager, building manager or committee member should have access to an owner's contact details without their permission.
There are many other reforms in this bill that I support that will make the day-to-day running of an apartment building much easier. We need to widen the scope of strata reform to create protections for owners and residents of mixed-use buildings, which represent the future of construction and strategic planning. Over-station development is a big part of metro planning, but those properties will have additional complexities to manage. Building management committees should be made up of representatives of the residential strata and other strata to manage property common to each stratum. Disputes in building management committees go to the Supreme Court, which prolongs outcomes and significantly raises costs. The current situation is unsustainable and needs urgent reform. I thank the Minister and his office—particularly his policy advisor, Alicia Sylvester—and the department for their hard work and commitment to strata. I look forward to working with the Government on continuing reform. I commend the bill to the House.
Ms DONNA DAVIS (Parramatta) (15:24:15):Report on the statutory review of the Strata Schemes Development Act 2015 and Strata Schemes Management Act 2015
I speak in support of the Strata Schemes Legislation Amendment Bill 2024. As our urban landscape continues to evolve, an increasing number of people are experiencing strata living in our cities, suburbs and regions. Accompanying this fast-changing housing landscape is the rise of strata. A strata scheme is a building or group of buildings that is divided into lots, such as an apartment, villa or townhouse. Those buying a lot in a strata become a member of the owners' corporation, which holds the common property of the scheme on behalf of the lot owners. Common property can include shared stairwells, driveways, gardens and roofs. Across New South Wales, there are more than 86,000 strata schemes, housing more than 1.2 million residents. The Minns Labor Government is taking action to implement the 37 recommendations of the 2021 . By implementing these reforms, the Government is ensuring that strata schemes continue to be an ideal living option for New South Wales residents.
Amongst the important reforms in this bill, I will focus on those that relate to the repair and maintenance of strata schemes. The reforms that I will discuss also apply to community land schemes. Investing in proper, regular maintenance of strata buildings is critical for the safety and amenity of buildings. It safeguards the value of buildings, reduces insurance premiums, helps ensure owners are not caught off guard by unexpected costs, enhances the quality of life of residents and ultimately contributes to the future sustainability of the scheme. Overseeing the maintenance of a scheme starts at the very beginning, when the original owner, who is usually the developer, hands over the scheme to the new owners' corporation.
In the Parramatta electorate, housing is big business. Right now, there are thousands of new strata homes at various stages of development, with many more thousands to come. Due to the success of the Minns Labor Government's first home buyers' scheme, right across the Parramatta electorate new home owners are choosing to buy their first home in the form of an apartment. For many, this is a positive experience, but some have had bad experiences due to poor building construction and poor strata management. I will provide a couple of examples of letters written to me by constituents in my electorate about some of the challenges they have faced. One gentleman, who wrote to me last year, said:
I am investigating all avenues before I make a decision to sell my apartment at a huge loss.
I am one of the unlucky people that bought a unit off the plan in Parramatta and later found out it has combustible cladding.
I purchased my unit off the plan at the age of 22 thinking I was doing the right thing for my future.
When the unit block was embroiled in issues I have powered through paying extra strata fees, insurance fees and legal fees to try and get the cladding issue rectified.
Now the developer has gone and owners are left to try and work this all out.
The unit is now worth less than I paid for it (I am now 32) and have now received an option of a $100,000 cost to rectify my tiny portion of the total building.
I am already trying to pay the $350K loan that I have.
I am now 32 and cannot hold out any longer to try and get my life back on track. The stress in unbelievable, I thought I was doing the right thing by entering the real estate market at a young age.
A second correspondence, from the chair of a strata management committee, states:
With the continued focus on increasing housing through large developments, I believe it is vital that there are significant statutory improvements made by the State government to protect strata owners from:
1. The actions of developers in locking in owners to long term service contracts and embedded service networks and;
2. in overhauling the strata management industry.
…
… no doubt you are aware of the appointed strata manager and you are aware of some of the concerns that have been raised against that firm. After discussions with the investigator I am not convinced the terms of reference for that investigation will extend to cover some of the easy fixes that could be put in place.
Our experience in what appears to be "generally accepted industry wide practice" suggests that there will be continuing challenges that owners experience and end up end accepting as it requires significant investment in time and money to resolve.
They are two examples of the many letters my office has received from people who are struggling with the challenges of strata, combustible cladding and poorly built buildings across the electorate. There are challenges with strata, as borne out in the statutory review. The Minns Labor Government is committed to addressing the concerns of those constituents and to making changes via the bill.
Currently, developers must provide the new owners' corporation with information about the obligations and costs associated with maintaining the common property. This information is in the form of an initial maintenance schedule which is prepared by the developer ahead of the first annual general meeting. The schedule is critical in estimating the initial levies for the new home owners' corporation. The bill implements several changes in relation to the initial maintenance schedule and the initial levies to ensure they are not understated. First, the bill will mandate that the schedule be in the form prescribed by the regulation and adhere to minimum requirements. Second, the original owner of a multi-storey scheme will be required to engage an independent surveyor to review the schedule and certify that it has been prepared in accordance with the prescribed form. The surveyor cannot be connected to the original owner.
An independent surveyor or other expert prescribed by the regulations must also review the estimates of the initial levies and certify that they meet the scheme's expected expenditure for the year, based on the expenses provided by the original owner. Third, the original owner must give evidence of the certification at least 14 days before the first annual general meeting. To ensure the quality and accuracy of the schedule and initial levy estimates, the new requirements will be enforced with a maximum court-imposed penalty on developers of $55,000. Collectively, the reforms improve developer accountability and equip owners' corporations with the information they need to adequately plan for future maintenance and repairs. Once the strata scheme has been handed over to the new owners' corporation, it is the legal duty of the owners' corporation to maintain and repair common property.
Feedback to the review found that there is widespread frustration about owners' corporations failing to properly maintain and repair common property. That can lead to rising insurance costs and special levies being imposed, which could have been avoided if the owners' corporation had been proactive about the problem or carried out the necessary maintenance in the first place. Failure to repair and maintain common property can also impact lot owners who face damage and loss of amenity of their lot. Impacted owners must then attempt mediation and go to the tribunal to help resolve disputes over repairs to common property. Sometimes tribunal orders are ignored. One way that the bill encourages owners' corporations to comply with their duty is by enabling NSW Fair Trading to enter into enforceable undertakings with owners' corporations, or issue compliance notices to owners' corporations to take action to remedy a breach of duty. Penalties may apply for non-compliance.
Extension of time
The new enforcement powers will be complemented with associated powers to help investigate compliance, such as applying for search warrants to enter a strata lot if the owner does not consent. The consequences of not carrying out repairs and maintenance can be costly, and that is why it is important that NSW Fair Trading have the powers to help resolve disputes effectively. The powers will only be used in cases of critical need, such as where there is a risk to safety of residents or a risk to the structure of the building. Safeguards will be in place so that powers to enter strata lots or seize property will only be used where needed. []
The bill will make it easier to install accessibility infrastructure to assist owners in better accessing the lot where they live and the common areas of their scheme. Wentworth Point in the Parramatta electorate is the most densely populated suburb in New South Wales. Every single home in Wentworth Point is strataed. Every street is managed by a community association, bar two: Hill Road and Burroway Road. The issues arising from the current strata structure are significant for the people of Wentworth Point, not to mention the residents of Sydney Olympic Park, Newington and many other suburbs, and particularly the rising suburb of Melrose Park. All of my side of Wharf Road will be strataed as well.
In Wentworth Point there are two stratas. One belongs to a completed development. The other belongs to a development that has not been approved yet. There is no connection between those two lots for people who require accessibility for prams or wheelchairs. The community is understandably up in arms because they cannot work out how they can get that fixed. Those who live in other buildings do not have access to those stratas and community associations, yet they are impacted. There is nowhere for them to go to try to resolve this, so who do they go to? They obviously come to their State member, asking them to try to find a solution, which I am trying to do. But those challenges are great and they really impact people mentally. It is not just the physical challenges for people who cannot get around their suburbs; it is the mental strain on people who are volunteers working in those stratas and living in those suburbs. They do not know how to resolve issues effectively.
The bill responds directly to stakeholder concerns by lowering the voting threshold needed for changes to common or association property to facilitate a person with a disability having access to the common or association property, or the lot in the scheme in which they reside. The person only needs a majority vote to make changes to common or association property for accessibility purposes. Importantly, the scheme will be required to consider the impacts of refusing to install the infrastructure on people with disability and whether a given building can support the type of infrastructure required to provide access. I welcome the changes. They are long overdue. I look forward to being able to assist the community with the challenges that they face. The bill demonstrates that the Minns Labor Government is committed to implementing the recommendations of the review, as well as addressing the other issues facing strata and community land schemes in New South Wales. I congratulate Minister Chanthivong and Minister Dib and their teams on their work on the bill. I see Alicia Sylvester in the advisers area and I commend her for the work she has done. I will not mention all the different stakeholders that have been involved.
I am very passionate about the bill because it impacts so many people in my electorate. We heard from the member for Sydney earlier. He and I represent the electorates with the highest numbers of people living in apartments in New South Wales. We really feel its impact on people's everyday lives. Let us come together to support the bill and foster a future where well-maintained, safe and secure strata schemes are the standard for all New South Wales residents. Our children will be living in those buildings. Our friends are retiring to those buildings. Families are growing up in those buildings. People we know right across our cities need to have those protections in place so that they can live fulfilling lives without the stress that currently exists in strata arrangements. I commend the bill to the House.
Mr JORDAN LANE (Ryde) (15:39:03):Four Cornersé
I am pleased to support this bill, which responds to the statutory review commenced under the former Government. I believe strongly in any reform that will improve strata governance, financial accountability, sustainability and accessibility. I also believe in stronger compliance and enforcement mechanisms for those who do the wrong thing. I believe this bill goes some way to addressing those principles. We all saw the expos on the hidden strata fees costing Australians. The simple fact is that more people than ever before are living in strata, and more people in the future will live in strata. I live in strata, as does a rapidly growing percentage of my electorate, Ryde. This trend is also being exacerbated by Government policy.
This Government has a one-track policy when it comes to housing: more apartments. This is clearly a part, but certainly not the whole, when it comes to genuinely addressing the affordability crisis. However, it has few plans to build the framework and structure around the very apartment living it is actively seeking to promote. This would not only make the growth and livability of those apartments sustainable but also affordable. To put it simply, people might—and that is a big "might"—be able to afford an apartment, but they certainly cannot afford the building defects that follow, nor the exorbitant commissions, hidden fees and time costs of learning their rights, studying the rules and fighting with the NSW Civil and Administrative Tribunal. This bill tinkers in some of the right places, but we need to do so much more.
I specifically want to highlight what the latest changes aim to achieve and will offer some brief commentary before addressing a few points where I believe this Government can do more. First, it strengthens developer accountability by requiring initial levies to be independently certified. This is about transparency. It stops developers offering initially low strata fees that can then incrementally grow to unaffordable levels. Second, it ensures a robust initial maintenance schedule is in place for new builds. This is about forward planning. It goes some way to addressing depleted sinking funds and the necessity for special levies to deal with crisis works which would otherwise be preventable with a more sustainable schedule of maintenance. Third, it protects owners' corporations from unfair contract terms. This is about fairness. It starts a conversation on things like embedded networks, which I will address in greater detail later.
Fourth, it helps owners' corporations in repairing and maintaining common property. This is about convenience and practicality. These dwellings are people's homes, and they have a right to quick, efficient and affordable repairs and maintenance just like anyone not living in strata. Fifth, it supports the uptake of sustainability infrastructure in strata schemes, such as solar panels, electric vehicle charging and efficient water fixtures. This is about the modern challenges of age-old problems. It reduces some impediments to new sustainability installations, but this cannot be the end. Sixth, it gives property owners more options to pay levies when facing financial stress. This is about compassion. Cost of living is the first, second and third issue impacting families, and it is right and just that we expand the options for people who are struggling to pay.
I will now address that which is not tackled in this bill. In its current form, this bill seeks to address just over 25 per cent of the recommendations from the statutory review. I note that previous legislation deals with other components of the review and that there is likely to be further legislation, but this has caused some concern about piecemeal reform and potential delays. Importantly, we lack a single source of truth for the exponentially fast-growing community of strata dwellers. This House would benefit from an overarching breakdown of which aspects of the review have been enacted, which are underway and if there are any the Government has no intention of adopting. In the case of the latter, an explanation as to why would provide much‑needed clarity to this important policy debate.
I now turn to future reform. I call on the Government to take these reforms further. We have seen and heard too many cases of strata schemes that are unable to resolve long and ongoing disputes with builders over defects. While lawyers on either side make a fortune, there are residents living daily behind scaffolds with no access to parts of their own building. This is simply not fair. There needs to be a greater focus on coupling future reforms to this legislation with build‑quality reforms that give new owners and renters confidence in their new home. Earlier I alluded to the matter of contract terms. I now want to specifically call out the inequity of embedded networks. At its core this bill recognises the moral failure of embedded networks, yet it tinkers at the sides and never strikes at the heart.
We should and must free local residents from the grasp of these sinister arrangements, but the bill does everything but. It requires the disclosure of embedded networks at the point of sale but it does not stop them. It requires off-the-plan purchasers to be told, when they buy a new apartment, if it is likely to include an embedded network but it does not stop them. It prevents permanently locking in embedded networks but it will not prevent them. Why? What does this Government believe is the merit of an embedded network in a residential apartment? If embedded networks will not be abolished by this Government, there should at least be a positive onus on a residential strata scheme to opt in. Nobody should inherit one at the outset. Nobody should be deprived of choosing their own power and internet supplier, nor should a third party dictate the price of their power or internet in their home.
I recognise that there might be some relevance to these arrangements for caravan parks and other commercial precincts, but I cannot for the life of me understand how it is fair that an individual resident is deprived of the opportunity to find a better power or internet deal. It is anti-competitive, and it could cost those doing it tough more than they can afford. Earlier in the parliamentary term we passed new rental reforms which, in part, made it easier for people to own pets, particularly if they live in a house. The overlay of strata rules and regulations continues to confuse residents and undermine the purpose of the rental reforms related to pets. Many still remain unaware of their rights when it comes to pet ownership.
New South Wales is a jurisdiction with one of the highest rates of pet ownership in the world but also has some of the least friendly laws. For example, can my pet use the grassed common area at the back of my apartment? Maybe, but also maybe not. As more and more people—especially young professionals and families—are moving into strata premises, there needs to be far more done not only to raise awareness of their pet ownership rights but also to crack down on the often opaque methods used by strata schemes to restrict very reasonable and legitimate efforts to keep pets at home. I have spoken about the need for a single source of truth in strata, and there are few examples that more vividly demonstrate this need. This same principle applies to whether I can hang my laundry from my apartment balcony. It turns out that it depends: on whether it is visible, on which part of the balcony, and on what it hangs. It depends if I have permission and it depends on the presence of any by-laws.
How can something so simple be so unclear? Strata laws need to enshrine what can and cannot be done. They also need to be clear about what is off limits for new by-laws. A by-law may not have legal standing if it is harsh, unconscionable or oppressive, but is the struggling new owner or tenant really going to question the authority of owners' corporations? This must change. As I discussed earlier, this bill goes some way to removing inhibitors to installing new EV and solar infrastructure. In practice, it would not be appropriate for a by-law to block these installations on the basis of physical appearance, but nowhere near enough work has been done to create equity among first movers in established apartments. An individual resident could bear the cost of thousands for the first EV installation, but subsequent residents could pay only hundreds to connect thereafter.
I urge the Government to think about ways to work with older schemes and avoid the inevitable outcome of this inequity through inaction. There are also concerns about the availability of information, particularly with respect to the schemes' financials. There is a requirement to provide a short summary at an annual general meeting but not at other times. Am I entitled to receive a copy of the full document if I ask for it? Based on anecdotal examples provided to me, it seems to depend on the strata manager. Some are forthcoming and will step through how the finances are tracking line by line, while others simply ignore requests. Some are so brazen as to question the motives of owners seeking information about their own home.
Extension of time
I accept that the plain English provision of financial information is ideal, but surely, out of an abundance of transparency, one has a right to more if they have an interest in knowing more? Perhaps the full financials should not be required to be provided, but they should certainly never be refused. I also believe in greater transparency around commissions, insurances and other fees which contribute to the cost of living for so many residents. These residents are relatively powerless and often ignorant to their imposition. While I understand that the Government will seek to address these matters in further tranches of reform, I am resolute about the need to waste no time at all on delivery. []
Finally, I make a general observation about the new provisions for mandatory training. If ever there was a demonstration that a law is too complicated, it is when that law is amended to require training for its own comprehension. I do not oppose that step and accept in the context of this debate that empowering people with more information is a noble cause, but it also demonstrates the complexity of a sector conceived of long before we had 60-storey skyscrapers coming out of the ground.
The strata laws of today are still, at their core, meant for a time gone by. If this Government believes that high-rise density, in particular, is the solution to our housing crisis, then surely it must concede that the framework to support and sustain that type of living must equally be focused on the future. I support the bill and the response to the recommendations it seeks to address, but I cannot be clearer in my view that strata is quickly emerging as the housing, financial, legal and social issue of communities across New South Wales, with my electorate of Ryde standing front and centre. This Parliament owes it to communities like Ryde, which do the heavy lifting on housing supply, to avoid making them a cautionary tale for those areas yet to experience the significant planning interventions the Government seeks to bestow upon them. I commend the bill to the House.
Ms CHARISHMA KALIYANDA (Liverpool) (15:50:28):
I speak in support of the Strata Schemes Legislation Amendment Bill 2024. I am pleased that there is support for it and recognition of its importance from all sides of the House. Currently, tens of thousands of strata schemes house more than 1.2 million New South Wales residents. That number is expected to increase significantly under the Minns Government's plan to build more affordable and quality homes across New South Wales. That involves increasing density, which must include acknowledgement of the need for better quality strata schemes for our residents to take up.
In Liverpool, particularly in the Liverpool CBD, strata schemes have seen an even sharper uptake than in other parts of the State. First home buyers across our State are showing a preference for strata dwellings, with over 50 per cent opting for apartment or townhouse living, according to the InfoTrack property market update from the final quarter of last year. That preference for affordable options has driven the 2170 postcode to be the number one postcode in our State for first home buyers, most of whom are buying into apartment buildings in the rapidly densifying Liverpool CBD. Many young families see that as a pathway to one day owning their own home and as an accessible entry point into the housing market. With that uptick, it is so important for communities like Liverpool that we work to improve accountability and confidence in the strata sector.
Report on the statutory review of the Strata Schemes Development Act 2015 and Strata Schemes Management Act 2015
I have previously spoken in this place about the significant issues that make the changes proposed in the bill so necessary. The Government is committed to enhancing trust in the strata sector to ensure that home owners have confidence in the buildings they own and live in. The bill implements 37 recommendations from the 2021 . It is the second tranche of recommendations from that report that the Government is implementing and will bring significant changes to the strata sector in New South Wales.
The bill also includes other reforms to make it easier to install accessibility infrastructure in strata schemes, and to help owners in financial hardship to be better aware of their options and to more easily enter payment plans. Overall, the bill will protect owners' corporations from unfair contract terms, hold developers to account when estimating levies for new owners' corporations, make strata agents and building managers more accountable, improve strata committee governance, increase the uptake of sustainability and accessibility infrastructure, and help owners' corporations maintain their buildings.
I focus on several key reforms in the bill, firstly to strata managing agents and building managers. The bill responds to growing community concerns about practices in the strata professional services sector, improving accountability and confidence in strata managing agents and building managers. Over the past two years, my office has been contacted by many residents of existing strata schemes who were concerned with decisions made by building managers and strata managing agents, and I thank the Minister and his team for their attention to that matter. I have spoken with constituents who have had to undertake a steep learning curve and advocate for themselves to push back on some of those practices.
The bill will make that easier for those residents by prohibiting management agreements that limit agent liability, unless agents are covered by a professional standards scheme; requiring agents to produce six-monthly activity reports; imposing a statutory obligation for building managers to act in the best interests of the owners' corporation; and allowing contracts to be terminated by the tribunal where an agent or building manager has acted unlawfully. The Government will also consider further changes for building managers in the next tranche of reforms. The reforms complement the Strata Managing Agents Legislation Amendment Bill, which was passed in September of last year to strengthen agents' disclosure obligations, increase transparency and bolster the compliance and enforcement powers of NSW Fair Trading.
I also highlight the reforms to strata committees. The bill addresses concerns about the governance of strata committees and member capability. It does so by introducing additional duties and obligations on members, such as complying with relevant laws, acting with honesty and fairness, and completing mandatory training. I acknowledge and thank Liverpool resident Eloise, who raised those concerns with me, highlighting that her experience as a small business owner equipped her to serve competently as treasurer of her strata committee. However, her experience and capabilities are not the norm, and mandatory training will improve the quality of decision-making and committee functionality. That will improve the overall quality of strata schemes for the people who live under them.
The bill addresses the issue of committees, if they have been delegated, rejecting minor renovation requests without reasons. The bill will require that written reasons for refusal be provided to owners and that minor renovation requests be deemed approved where the owner does not receive a response within three months. That leads me to the impact of the bill on repair and maintenance. Because the repair and maintenance of common property is crucial to ensuring safety, functionality and value, the strata laws impose a statutory duty on owners' corporations to repair and maintain their common property.
The bill addresses concerns that some owners' corporations may be failing to meet that important duty by stopping owners' corporations from deferring repairs where safety, access or use of property is affected and where they have instituted proceedings for damages against an owner; by extending from two to six years the time for lot owners to claim damages for failure to maintain common property; by mandating that the 10-year capital works fund plan meet certain minimum requirements; and by enabling NSW Fair Trading to issue compliance notices, enter enforceable undertakings and investigate breaches of the statutory duty. Just a couple of weeks ago, 20 people were evacuated after the roof of a building in Cabramatta collapsed. Residents had complained to the strata and building manager about maintenance issues for over six months, to no avail. Finally, in the first weeks of this year, the roof collapsed on them. That should not be happening in 2025.
I also highlight the impact of the bill in assisting owners in financial hardship. The Government has heard from stakeholders that owners who have difficulties paying their levies may face unnecessary legal or bankruptcy proceedings. The bill assists owners in financial hardship by providing support options and preventing unnecessary legal or bankruptcy proceedings. It does so by requiring levy notices to include information approved by NSW Fair Trading with options for addressing arrears, available financial counselling and dispute resolution services; by allowing committees to enter payment plans on behalf of the scheme, with the tribunal able to intervene if a payment plan is unreasonably refused; by restricting debt recovery actions if a payment plan is in place and being followed; by specifying that repayments are to be applied first to levies, then interest and any debt recovery expenses, unless the tribunal, a court or the owner provides otherwise; and by increasing the notice of debt recovery action from 21 days to 30 days. Those are all incredibly important, especially, as the member for Sydney highlighted, because strata schemes are one of the most significant reasons that people undertake bankruptcy proceedings.
The bill represents another major tranche of the strata reforms that the Government promised to deliver to rebuild trust and confidence in the New South Wales strata sector. The bill shows that the Government is committed to implementing the recommendations of the review report as well as to addressing the issues impacting residents in strata that have emerged since the tabling of the review report almost five years ago. The Government plans to bring further reforms to Parliament to implement the remaining legislative recommendations of the review, and it will do that in a timely manner. I highlight and thank the Minister and his staff, as well as the department, for their work on this much‑needed and incredibly important bill. I note especially the work of Alicia Sylvester, who is in the advisers area today.
I also acknowledge stakeholders such as the Owners Corporation Network, the Financial Rights Legal Centre, the Marrickville Legal Centre, and the many residents who have shared their experiences with me. It is for them that I speak on this bill. Some have shared their fears for their financial future—the stress and anxiety caused by spiralling strata and insurance fees and the powerlessness of being trapped in a situation with no light at the end of the tunnel, until now. I am proud to be part of a government that is tackling the key issues facing our community and taking action, after almost a decade of inaction, to ensure the framework that impacts how so many in our State live is actually fit for purpose rather than just fit for developers. I commend the bill to the House.
Ms JENNY LEONG (Newtown) (16:00:42):
On behalf of The Greens, I contribute to debate in support of the Strata Schemes Legislation Amendment Bill 2024. The bill represents the third tranche of strata reforms that the Labor Government has introduced since the election in 2023. It seeks to implement 37 of the remaining 108 recommendations of the 2021 statutory review of the regulation of strata schemes. In acting on the recommendations of the 2021 review, the bill also seeks to make parallel amendments to the Community Land Management Act to ensure that the rules are harmonised. The Greens are pleased to see these reforms on the table, and I foreshadow that we will seek to move amendments in the other place to address some of the long-held views and concerns that have been raised by stakeholders.
As members have noted, the bill comes at a time when strata living is on the rise. More than 1.2 million people live in strata schemes across New South Wales. In the City of Sydney local government area, which falls partly within the Newtown electorate, nearly 150,000 people—75 per cent of residents—live in strata schemes. As more people turn to apartment or townhouse living, whether by preference or due to the prohibitively high and ever-growing costs of owning a detached home, strata is an increasingly critical policy area, where issues of equity and financial security and a place to call home all intersect and have a significant impact on people's lives. Yet, for so long, limited regulation within the strata sector has left thousands of residents at the mercy of opaque procedures and strata managing agents and owners' corporations that have plenty of discretion to act on behalf of owners and few rules to follow.
The bill seeks to address that imbalance and make a number of amendments that will have a real impact on strata residents by promoting greater transparency and efficiency in strata living. That includes amending section 37 of the Strata Schemes Management Act 2015 to require members of a strata committee to exercise their functions with honesty and fairness, due care and diligence, and—as far as practicable—for the benefit of the owners' corporation. New section 37 would also include subsection (2) requiring each member of a strata committee to complete training as prescribed by the regulations. The Greens look forward to seeing those regulations in due course.
The bill would also insert a new section 70A requiring building managers to act in the owners' corporation's best interest unless there is a reasonable excuse. Of course, that begs the question of what constitutes a reasonable excuse. We hope the Minister can provide some clarification on the relevant parameters in his speech in reply or in the regulations. I note that the issue of training, as mentioned by the member for Ryde, highlights the complexity of this policy area. A number of constituents who live in large strata complexes in the Newtown electorate have raised the need to look at what constitutes adequate training and to offer guidelines and support for people who serve on strata committees.
Overall, the Greens are pleased to see the efforts made throughout the bill to enhance transparency for people living in strata. That includes the insertion of new section 110 (6A), which requires the owners' corporation to give written notice of a decision to an owner who has requested approval for minor renovations within three months of that request being received. If the owners' corporation refuses approval, that written notice must include reasons for the decision. New section 110 (6B) provides that approval is taken to have been given if no written refusal, with reasons, is given within three months of the request being received. That is a good thing and reduces the likelihood of requests being denied on arbitrary or non-existent grounds.
Similarly, the bill seeks to insert a new section 132C that outlines the specific considerations an owners' corporation must take into account when considering a resolution to approve accessibility infrastructure. Those considerations include cost and financing, maintenance and the likely impact that not installing the accessibility infrastructure would have on residents, including the resident or residents who requested it in the first place. Again, that kind of transparency is crucial to ensuring decisions that will directly impact residents cannot be made arbitrarily. I note that in previous meetings with me people have raised serious concerns about the challenges of balancing a potentially significant change that is essential for someone's participation in everyday life, such as the insertion of a ramp, with pushback from strata committees, which might claim that such a ramp does not fit with the amenity of the building.
Lastly, I draw attention to new section 139B, which would prevent the application of by-laws that prevent the installation of sustainability infrastructure like solar panels or rainwater tanks purely for aesthetic reasons. Under current section 132B (2) (f) of the Act, "sustainability infrastructure" also extends to infrastructure that "facilitates the use of sustainable forms of transport", which could reasonably be understood to include things like bike racks or other forms of bike storage. That is a commonsense approach that will make a practical difference for owners living in strata who want to do their bit to move us toward a greener future, whether by installing solar panels or by opting for an electric vehicle or a bike. However, more work needs to be done in this space.
New section 139B (2) provides that by-laws restricting the installation of sustainability infrastructure can still be applied to common property that is heritage listed or within a heritage conservation area. I note that in the Inner West local government area, which also falls partially in the Newtown electorate, many homes are listed on the local heritage register or are in a heritage conservation area. While heritage and the rich history of our suburbs is certainly important, conserving that must be carefully balanced against the need to do everything we can to address the climate crisis. The Greens would absolutely welcome the opportunity to work more constructively with the Government to ensure that the right balance is struck. Sadly, people within the Inner West Council area who have attempted to do the right thing by installing solar panels have been either told to remove them or have been unable to install them in the first place because of heritage considerations. We must do better at balancing heritage considerations with the need to install sustainability infrastructure.
Four Corners
Disappointingly, the bill fails to grapple with the regulatory loopholes that saw nearly 1,000 complaints to NSW Fair Trading about strata agents between 2018 and 2023, the majority of which related to conduct and finances. Last year, explosive reporting by revealed a regulatory ecosystem in complete disarray, with some strata companies charging millions of dollars in insurance fees and accepting kickbacks from contractors, and others charging owners exorbitant fees with little justification. Even the now stood-down Strata and Property Services Commissioner John Minns acknowledged that strata has been "under-regulated for a very long time". In response to those revelations, rather than move to ban kickbacks or commissions entirely, the Labor Government introduced legislation in September last year that, in effect, legitimised them. Now strata managing agents in New South Wales can take a commission as long as they disclose to the owners' corporation the amount of this commission, how it was calculated, and the nature of the relationship they have with the person providing the commission.
In a similar vein, the bill does little to address the growing problems around embedded networks in New South Wales. While it seeks to amend section 184 of the Act to require owners' corporations to disclose if a strata scheme includes an embedded network and, if so, what services it provides, it does not limit the use of embedded networks or provide owners with an avenue for terminating a contract with an embedded network. Requiring disclosure of something that is dodgy or less than ideal is not the same as outlawing that dodgy or less than ideal thing.
Extension of time
It is critical that the New South Wales Government does not hide behind the overuse of the term "transparency" as the panacea to solving dodgy practices. It is not okay just to know something that is problematic is happening—and I recall here the debate or, dare I say, debacle around the rent-bidding reforms. We must ensure that the problematic thing is not happening in the first place, rather than just transparently disclosing that it is happening. I understand that my Greens colleague in the other place Cate Faehrmann will be moving amendments to give the embedded network provisions some teeth, namely by allowing contracts with embedded networks to be terminated at any time without penalty. []
My Greens colleague will also be moving amendments to protect those in financial hardship by making it unlawful for an owners' corporation to refuse an owner's request for a payment plan on unreasonable grounds, and to enhance disclosure requirements for building managers. Those are sensible and straightforward amendments, and I urge Government members to consider them closely. To that end, I note that for all the steps this bill takes in the right direction, it does nothing to expand the rights of renters, who make up a significant portion of residents in strata schemes. We are talking about the pressures put on owners within strata schemes, but at least they are sitting at the table and have a voice in these decisions.
Sadly, many renters are in those same situations but are unable to access the decision-making bodies and the information required. Whether it is a decision to ban bicycle storage in common areas, a blanket ban on balcony clotheslines, a by-law dictating what kind of welcome mats can be placed outside apartment front doors or the colour of umbrellas on balconies, renters and owner-occupiers are equally impacted by decisions made by strata committees. While owner-occupiers can have their voices heard at strata committee meetings and through membership of the committee itself, renters do not have that option. It is deeply concerning that, in apartment complexes that are mostly, if not entirely, investor-owned—as is not uncommon in the inner west—decisions about maintenance and common property can be made by a committee of people who do not even live anywhere near the building.
If we are to address that perverse situation, we need to seriously consider what further reforms we can make to ensure that renters have a voice in decision-making as we see more people living in strata, including by setting a quota for tenant representation on strata committees. The Greens would be very happy to work with the Government on reforms that we believe would achieve that goal and, indeed, look forward to seeing further legislation to address the 77 recommendations that remain unactioned from the statutory review. If we want to encourage people to shift towards higher density ways of living, we need to ensure they are not encumbered by challenges or complexities that people in detached dwellings do not have to deal with. Getting strata regulation right is a massive part of that challenge. I commend the bill to the House.
Ms MARYANNE STUART (Heathcote) (16:13:02):
I speak on behalf of the people of Heathcote and from across New South Wales about an important piece of legislation, the Strata Schemes Legislation Amendment Bill 2024. New South Wales is home to over 86,000 strata schemes housing more than 1.2 million residents. As our State grows and our Government continues to work towards delivering affordable and quality homes, strata living will play an increasingly vital role in our communities. Trust and transparency must form the foundation of this sector. Home owners must have confidence in the buildings they own and live in.
Report on the statutory review of the Strata Schemes Development Act 2015 and Strata Schemes Management Act 2015
The bill implements 37 recommendations from the 2021 . This is the second tranche of recommendations from the report that the Minns Labor Government has implemented as part of its commitment to enhance trust in the strata sector. Constituents of mine in the Heathcote electorate have made me aware of their concerns regarding some agents misusing their authority and the detrimental impacts it has had on their lives. An owners' corporation is a legal entity that manages the common property of a strata scheme, made up of all the owners of the individual units of the scheme. They are volunteers, and I have spoken to some of the elderly retired people who hold positions on these committees who have been made to feel fearful by their strata manager.
A strata manager, of course, is someone who is supposed to keep everything running. They are paid to keep everything in a strata scheme running smoothly and to help the owners' corporation fulfil all of its obligations. Owners' corporations are vulnerable to the use of unfair terms in contracts they enter into on behalf of their scheme. One such local corporation spoke of the individual officeholders on the committee being threatened with legal action by their strata manager. These are home owners wanting to protect their assets against, at times, big bullyboys. They buy a unit in good faith, wanting to live a simple and carefree life. The bill will protect owners' corporations from unfair contract terms, hold developers to account when estimating levies for the new owners' corporation, make strata agents and building managers more accountable, improve strata committee governance, increase the uptake of sustainability and accessibility infrastructure, and help owners' corporations maintain their business.
I know that my constituents in strata living will welcome these much-needed changes as a respite from the negligence and malpractice that some agents have been able to get away with under the previous, inadequate legislation. Key reforms include imposing a statutory duty on owners' corporations to repair and maintain their common property to ensure safety, functionality and value; protecting owners' corporations from unfair terms in contracts they enter into on behalf of their scheme; promoting sustainability infrastructure in strata schemes by removing barriers and prioritising sustainable action during formal proceedings; and assisting owners in financial hardship by providing support options and preventing unnecessary legal or bankruptcy proceedings.
This bill demonstrates the Minns Labor Government's sustained commitment to rebuild trust and confidence in the New South Wales strata sector. With the implementation of the Strata Schemes Legislation Amendment Bill 2024, we are ensuring that bad actors in the strata system are held accountable, and New South Wales residents in strata living can relax in their affordable and quality homes. I am proud to see these amendments being introduced to help protect vulnerable home owners from strata managers who show a pattern of exploitation and predatory behaviour. I look forward to seeing those individuals who put their own interests above the interests of those that they serve held to account, at the very least.
I thank my local residents, in particular one fellow who has been relentlessly seeking justice. I thank them for being brave, for coming forward and for speaking out about the abuse, the bullying and the fear that they have experienced. They have spoken about paying thousands of dollars into levies to a strata manager who did not pay the bills for services that needed to be delivered, such as water and garbage collection. They have felt helpless. I thank the Minister, his staff, especially Alicia Sylvester, who is in the advisers area, and the department for all their work. I look forward to a more fair and user-friendly system that is long overdue. I thank them all for listening and acting. I thank them for their commitment to help those who have been voiceless and powerless. I commend the bill to the House.
Dr MARJORIE O'NEILL (Coogee) (16:18:51):
I provide a brief contribution to debate on the Strata Schemes Legislation Amendment Bill 2024. The bill is a crucial reform for the millions of New South Wales residents who call strata communities home, including a significant portion of the electorate of Coogee. That electorate has one of the highest concentrations of strata properties in the State. From the Art Deco apartments that wash Clovelly to the 1960s and '70s walk-ups of Randwick and Coogee, to the very modern high-rises of Bondi Junction, thousands of residents—in fact, the vast majority of people in my electorate of Coogee—rely on well-managed, fair and transparent strata schemes.
The bill is directly relevant to the daily lives of people in our community. Strata living is no longer a niche issue. Nearly one in three people in New South Wales reside in apartments, townhouses and other strata schemes. Those communities should be places of security, fairness and good governance. Unfortunately, many owners face poor financial management, building defects and conflicts over decision-making. The bill takes significant steps to modernise and strengthen strata laws to ensure fairness, accountability and protections for all owners and residents.
For too long, strata owners have been at the mercy of poorly run committees and loopholes that allow unfair decision-making. The bill introduces tighter regulations on committees' conduct to ensure transparency, ethical decision-making and financial accountability. Owners will now have greater oversight over how their funds are managed and how key decisions are made. In areas like Coogee, Randwick and Clovelly, where many buildings are heritage-listed or are older-style apartment buildings, fair management is critical to ensure long-term maintenance and upkeep. The bill helps to guarantee that owners have a stronger say in how their buildings are run.
One of the most pressing concerns in strata living is the alarming number of building defects. In the eastern suburbs of Sydney, we have seen new developments go up quickly, only for owners to discover serious defects—from water damage to structural issues—costing them thousands and thousands in repairs. The bill strengthens protections against defective building practices and holds developers accountable for ensuring that builders are constructing to a high standard. That is particularly relevant in our community, where many residents have invested their life savings into apartment ownership. Those people deserve peace of mind that their homes are safe, durable and built to last.
Strata disputes can quickly escalate, leaving owners stuck in legal battles and financial hardship. This bill improves dispute resolution mechanisms by providing clearer processes for resolving conflicts between owners, committees and developers. It ensures that strata laws are easier to follow, more transparent and less burdensome for everyday people. For our eastern suburbs communities, where strata committees play a crucial role in maintaining the character and liveability of our area, better governance means less conflict, less uncertainty and a greater sense of community.
This legislation is not just about legal technicalities; it is about improving people's homes, investments and quality of life. It is about ensuring that strata communities are managed fairly, that residents are protected from financial exploitation and that developers deliver on their obligations. For the thousands of apartment dwellers in Coogee, Randwick, Clovelly and beyond, the reforms will bring more security, fairness and confidence in their homes and investments. The bill is a practical and necessary reform. It reflects the realities of modern apartment living and provides stronger protections, better governance and a fairer system for all. I commend the bill to the House.
Ms STEPHANIE DI PASQUA (Drummoyne) (16:23:21):
I make a brief contribution to debate on the Strata Schemes Legislation Amendment Bill 2024. As we all know, the number of people living in homes governed by strata schemes is rising and will continue to do so, especially as the cost of housing in the Sydney metropolitan area continues to increase. Almost half of all homes that make up my community are governed by a strata scheme. My electorate is also home to Breakfast Point, which is one of the largest community associations in New South Wales. It is an amazing place but is not without its challenges.
I have listened to many constituents about the issues that they have experienced with strata schemes, from basic issues of financial transparency—which I understand this bill addresses—to issues of governance, sustainability and compliance. The reality is that strata schemes are complex and everyone in the industry, including owners, tenants, building managers and strata managers, must work together, with government, to improve strata scheme legislation. That is why we are here today. I stress how important it is that, as policymakers, we continue to listen to residents in strata schemes, to empower our communities to have more confidence and trust in the industry. That is particularly relevant in cases of repair and maintenance issues that arise in common property.
I want to share one short story, which was shared with my office just last month. It read:
Dear Stephanie, I purchased an apartment in December 2022. I had a strata report conducted prior to this.
The purchaser said she thought she would do her own research. She continued:
After a few weeks I found water ingress from the terrace entering my living areas and water pooling due to no fall on the tiles. I had to seek legal help and an NCAT date for remediation as was I ignored by the strata. There are now building delays and a levy that I have had to pay of $42000 but no work has commenced. I have been told that I will be unable to return to my home until mid June I am 74 and had hoped this move was to be my last. I am a pensioner and have moved 9 times with my elderly labrador. I have exhausted my financial funds and had this nightmare affect my health and causing stress and depression.
My main concern is for people in my community and across New South Wales—young people, families, pensioners, retirees—who find themselves in financial hardship or with significant stress because of the issues they are experiencing with strata.
I have heard the contributions of members before me today, saying that strata has been underregulated for a very long time and that, disappointingly, some in the industry have been dishonest and not acted in good faith. The bill will go some way to improve the many issues that are experienced by owners in strata schemes but, of course, there is always more work to be done. I look forward to working with everyone in this Chamber, including the Government and the Minister, to make laws governing strata schemes fairer, more practical and more workable in an everyday environment.
Ms KYLIE WILKINSON (East Hills) (16:26:34):
I support the Strata Schemes Legislation Amendment Bill 2024. Strata living has become an essential and growing component of the overall housing mix in New South Wales. Increasing population, housing density and demand for diverse living options, paired with declining housing affordability, are combining to drive the rapid expansion of the strata sector. In fact, many home owners now live in strata-titled homes. The quarter-acre block with one house is declining in large cities like Sydney and also in my electorate of East Hills. Most of my children are now owners and live in strata-titled properties, compared to when I first bought my single‑dwelling home on the one block in East Hills back in the mid-1980s. With more and more people now involved in strata-titled properties, New South Wales needs a robust and responsive regulatory framework that can support the sector as it grows, both now and into the future. The Government's ambitious reform agenda is helping to deliver this regulatory framework, by tackling legacy issues in the sector while also keeping an eye on the future.
Reforms in the bill will ensure strata living remains an attractive housing option in the decades to come. I especially recognise three areas of reform: environmental sustainability, economic viability and accessibility. Turning first to the need for environmental sustainability, the Government is aware that strata residents, owners and the wider community are increasingly concerned about the impacts of a changing environment on their housing. The bill helps to address those concerns by, firstly, requiring schemes to consider environmental sustainability at each annual general meeting. That includes consideration of annual energy and water consumption and expenditure of the scheme's common property. Secondly, owners' corporations will be required to consider sustainability infrastructure and any associated upgrades needed as part of their capital works fund planning each year. Lastly, the bill addresses impediments to installing sustainability infrastructure by prohibiting by-laws that block sustainability infrastructure due to its appearance, except when common property is heritage listed or within a heritage conservation area. Collectively, these reforms will enable schemes to more easily incorporate sustainability and respond to changes in climate.
Turning to the matter of financial viability, I note that strata schemes are collectively owned and collectively funded through the levying of contributions on lot owners. This means that a scheme's financial viability may be at risk when owners do not pay their levies. At the same time, there is a need to ensure that schemes do not push owners into financial hardship when collecting their levies. To address this, the bill will require that levy notices be accompanied by NSW Fair Trading approved information, such as options to address arrears payments, financial counselling services available and dispute resolution options. The bill also empowers strata committees to agree to payment plans on behalf of their scheme rather than first requiring approval at general meetings.
Where there are disputes over refused payment plans, the tribunal may order that the owners' corporation enter into the payment plan if the tribunal finds that the owners' corporation should not have refused the plan. Owners' corporations will no longer be able to pursue debt recovery when an owner is complying with an agreed payment plan. Also, payments made under a tribunal or court order will now be applied first to levies, then to interest and debt recovery costs. Finally, the notice period for debt recovery action will be extended from 21 days to 30 days, giving owners more time to seek support and pay overdue levies without compromising schemes. Overall, these changes will make payment plans more accessible, reduce unnecessary debt recovery actions and provide better support for owners who are experiencing financial difficulties.
Turning to accessibility, I note that the bill introduces measures to make it easier to install accessibility infrastructure in schemes, thereby improving the lives of people living in strata communities who have special needs. No longer is a special resolution required to approve changes to common property for accessibility purposes; a majority vote will suffice. To ensure that schemes look at accessibility holistically, owners' corporations will be required to assess factors like cost, ownership, installation, maintenance and the use of any accessibility infrastructure before approving changes. They must also consider factors like the impact on residents with disabilities of refusing to install infrastructure and whether their building can support requested accessibility changes.
These reforms will address difficulties faced by residents who need modifications to common areas, ensuring that accessibility needs are better met as the population ages. Taken as a whole, the reforms I have outlined around environmental sustainability, financial viability and accessibility will go a long way to ensuring that the regulatory framework supports future strata schemes in years to come. I commend the bill to the House.
Ms JODIE HARRISON (CharlestownMinister for Women, Minister for Seniors, and Minister for the Prevention of Domestic Violence and Sexual Assault) (16:32:42):
— I speak in support of the Strata Schemes Legislation Amendment Bill 2024. This bill is part of the next phase of our Government's broad suite of reforms being pursued in the strata area. One of the Government's key missions is tackling the housing crisis, which is a major driver of the cost-of-living pressures being felt all over the State. It is an important issue for my electorate of Charlestown. Census data certainly shows an increase in the percentage of Charlestown electorate residents living in semidetached properties, townhouses and apartments between 2016 and 2021. There has been a 4.4 per cent increase in people living in houses, a 14.3 per cent increase in people living in semidetached residences and a 27 per cent increase in residential flat building in my electorate. I told the House when I spoke last year on the Strata Managing Agents Legislation Amendment Act 2024 that:
In my electorate of Charlestown, where a number of train stations have been … [targeted for new builds] as part of the Government's groundbreaking transport oriented development strategy, strata living … already a fact of life for many of my constituents … will become more common.
The issues this legislation is designed to address are personal for many people in Charlestown, but this legislation is also forward thinking in solving problems before they occur. By implementing 37 of the review's recommendations, this bill makes strata living fairer for the 1.2 million people living in the 86,000 schemes across the State and makes it more accessible and attractive to those who might consider it in the future. On that note, I will illustrate to the House how key elements of the bill address issues that may be faced by people living in strata. Imagine a person who has been living in strata for 20 years, who cares about where they live, who cares about the building in which they are living, who loves their community and who decides to give back by getting involved in the owners' corporation committee. This person does not have a legal education and has never done anything like it before.
It is fairly common for people on strata committees to have that type of experience. As the Minister pointed out during his second reading speech, when we talk about the people who are involved in owners' corporations, we are often talking about volunteers with limited or no experience. By amending the Fair Trading Act 1987, the bill seeks to address many issues that can arise in this area. In simple terms, owners' corporations or associations will be protected from unfair or predatory contractual practices. This reform represents a new height in the protection of owners' corporations, the people who constitute those corporations and those whom they represent. Similarly, the bill strengthens the governance of committees. While most members of strata committees are committed, engaged and take their responsibilities very seriously, it is complex work and it is worthwhile bolstering the safety net and helping committee members do their work.
I am sure we have all heard in our roles as local members, or in our personal lives, strata horror stories. That is what this bill is working to eradicate. So many of the impacted individuals are volunteers and this Government is working with the sector to help train them in their responsibilities. As I said, we do not want to make strata living more difficult. This reform will build in higher levels of trust and accountability. The bill tightens requirements for owners' associations to address pressing maintenance concerns by, firstly, barring those corporations from deferring works, if safety, access, or use of a lot or common property is affected; secondly, by ensuring 10‑year capital works fund plans meet minimum requirements for proper maintenance, avoiding sudden expenses for owners; thirdly, by tripling the time that lot owners can make a claim for damages as a result of a scheme's failure to maintain and repair the common property; and, fourthly, by equipping NSW Fair Trading to enforce these requirements.
The bill also includes several reforms that will improve the accountability of, and the confidence in, strata managing agents and building managers by ensuring that an agent cannot avoid liability when acting outside their agency by prohibiting management agreements, by increasing the frequency of when managers need to provide key reports, and by allowing strata schemes to terminate agreements and contracts with managing agents and building or facilities managers when those agents or managers conduct business in contradiction of the law. The bill builds directly upon the Government's previous changes to disclosure requirements. Building managers will also have a statutory duty to act in the best interests of the strata when carrying out their works, so long as that action would be legal.
Now imagine that you are a first home buyer, who has scrimped and saved to get a deposit. You have chosen to purchase a strata lot. It is your home, you are proud of it and you are ready to make it your own. When you make an application to your owners' corporation committee to undertake minor renovations, you are turned down—and you are never told why. That was another problem identified in the review, and I am not surprised that it has the effect of generating quite a bit of tension within the owners' corporation. To help overcome this problem, the bill requires an applicant to receive written reasons for any refusal of minor renovation requests. If reasons are not provided within three months, the application for minor works is deemed to have been approved. In a similar vein, the bill will encourage the uptake of environmental sustainability infrastructure by prohibiting by-laws that block things like solar panels due to external appearance and will also increase accessibility in strata, lowering the voting thresholds required for the installation of accessibility features to common areas or individual lots.
Now imagine you are a single parent living in a strata scheme. Money is tight, but you get by. Then something unexpected happens: you lose your job, you have a serious illness or a surprise cost. You might get behind on your levies. Or perhaps there is an urgent maintenance issue in the building, which could not be reasonably foreseen and is not incorporated in the levies, and the owners' corporation needs to generate funds with an extra levy. Suddenly there is a massive, unexpected cost you need to pay. The bill assists people in that situation by requiring levy notices to be accompanied by Fair Trading approved information setting out a person's options, including payment plans, free financial counselling and dispute resolution support.
Committees will also be able to enter into payment plans directly with owners facing financial difficulties, rather than having to vote on the issue at a general meeting, as is currently the case. That will not prevent owners' corporations from making the best choices for individual circumstances faced by their scheme because a payment plan can be reasonably refused. However, in the absence of reasonable grounds, an owner will be able to challenge the decision in the tribunal. If an agreed payment plan is being complied with, owners' corporations will be limited in taking debt recovery action. The notice period for that action will increase, giving owners more time to work towards a solution. The changes will ensure that fewer strata residents end up facing legal or bankruptcy proceedings for failing to meet their levy obligations.
The bill takes several important steps to assist owners' corporations in meeting ongoing maintenance requirements and helping individual owners to understand the overall cost of their purchase of a strata lot. Currently the original owner of the strata property must prepare an initial maintenance schedule ahead of the first annual general meeting. The schedule informs decisions taken by the owners' corporation, including the capital works fund plan, the initial levies paid by new buyers, and so on. The legislative review found that the schedules vary widely in quality across schemes. The bill requires the original owner to meet certain standards set out in the regulation and to obtain independent certification of the details. The new requirements may be enforced, with a maximum penalty of $55,000 for noncompliance on the original owner.
In summary, the bill is important for the Charlestown electorate. We need to increase housing density to meet population growth and we need to see increased apartment and townhouse-type development. To do that we need to increase the attractiveness of and reduce the barriers to living in a strata development. The Minister said in his second reading speech, "The benefits of strata can only be realised when the regulatory framework overseeing the sector is effective, supports good governance and fosters public trust in strata professionals." I could not agree more. This bill is the latest in the Government's efforts to fix the housing crisis, and it will deliver real and important reforms for my constituents, now and into the future. I commend the bill to the House.
Ms FELICITY WILSON (North Shore) (16:42:33):
I contribute to debate on the Strata Schemes Legislation Amendment Bill 2024. For the community of North Shore, strata is crucial to the way we live our lives every day. Just like me, more than half of my community live in strata schemes, which is significantly higher than in most of the electorates represented in this Parliament. When narrowed down to the constituent councils and local government areas, it means that more than 70 per cent of those living in the North Sydney local government area live within strata complexes. Our lives are affected every day by the environments in which we live, so the reforms are the crucial next step to ensuring we deliver necessary improvements to the way strata schemes operate.
I live in a strata scheme as a renter, and I also have experience as an owner in a strata scheme in my community. Just like me, residents across my electorate have regular concerns that, I am sure, are consistently raised with many members of this House. There are concerns about governance, transparency and accountability, and the financial management of projects. There are concerns about rules around pets. There are concerns about the application and approval process for renovations and the management of maintenance for the complexes or for minor works. Increasingly, there are concerns about whether strata schemes are appropriately managing applications for solar and electric vehicle chargers and whether they are on common property or on lot‑owner property.
The recommendations that are recognised in this legislation will go some way to address some of those concerns. However, this legislation responds to only 37 of the 139 recommendations from the statutory review into the Act. The Government has chosen to take a piecemeal approach to the way it is responding to strata reform, which some would see as a positive. Rather than waiting to address all 139 recommendations, it is addressing some as it goes. However, from my community's perspective, I would say the goal is to speed up and address all the recommendations.
Considering the amount of work that went into the review, the extent and breadth of the recommendations and how much pressure there is on owners and renters in strata schemes, the Government needs to get on and address the remainder of the recommendations. During its tenure the previous Liberal Government undertook some reforms to commence that work. The department had significantly progressed in addressing and responding to those recommendations, so I am sure there is already a lot of work for this Government to get on and deliver.
I refer to a couple of the changes in the legislation that I have heard from my community will be particularly welcomed. Firstly, there is the introduction of some improvements in governance. It is not uncommon in my community for there to be conflicts between members within strata schemes. There have been issues with proxy farming and individuals believing that those on strata committees are inappropriately exercising their roles and responsibilities. The governance improvements for strata committee members, including the mandatory training and penalties for noncompliance, will go a way to addressing that, as will ensuring that there is clarity around the responsibilities of the chairperson.
Secondly, financial transparency will be a vast improvement. There is a lot of commentary on our community's social pages about the quality of managers of different strata schemes throughout the electorate. Anecdotally, owners and renters say there is a huge disparity in the capabilities of those managers. The financial transparency improvements for financial and operational reports and activities will also be an improvement, including providing estimates for maintenance and capital works levies and ensuring that they are certified by independent surveyors.
Thirdly, people in the community of North Shore also welcome clarity around sustainability measures, including ensuring that sustainability infrastructure cannot automatically be prohibited through by-laws. There are a lot of heritage considerations in my area, but they are predominantly not within strata schemes. It is important to ensure that we reflect on the needs of local communities, particularly with the drive towards stainability, addressing climate change and moving towards renewable energy. There is huge demand for electric vehicle chargers and solar panels at strata properties. Strata complexes in my community do not just include small or large apartment buildings but townhouses as well, and they have distinct roof spaces. We need to ensure that the owners of lots and the schemes themselves can benefit from renewable energy and lower cost energy sources. For too long they have been prohibited from accessing those.
In my community there will be an incredible increase in strata schemes in the years to come. As I said, more than 70 per cent of the dwellings in the North Sydney local government area are in strata schemes. Under the Minns Government strategy, an increasing number of low- to medium-density dwellings are being proposed for town centres across New South Wales. If the Government is capable and can successfully deliver the new housing, there will be an incredible increase in the number of strata properties in my community, with another 5,900 units in towers of up to 40 storeys across Crows Nest and St Leonards. The Government needs to get the changes right quickly, before that development starts across my community and New South Wales.
As I said at the beginning, I welcome the changes in this bill and the 37 recommendations that are being progressed. I encourage the Government to act quickly with the wise minds in the department to ensure that we address the remainder of the 139 recommendations still outstanding to ensure we are reflecting the rights, needs and future prospects of those who either own or rent in strata dwellings.
Mr EDMOND ATALLA (Mount Druitt) (16:49:23):Report on the statutory review of the Strata Schemes Development Act 2015 and Strata Schemes Management Act
I make a brief contribution in support of the Strata Schemes Legislation Amendment Bill 2024. This bill is a significant step towards ensuring that strata living in New South Wales is safe, affordable and reliable. The bill enacts 37 recommendations from the and incorporates additional reforms raised by stakeholders since the review. The Government remains committed to improving the lives of strata residents and protecting owners' corporations. These reforms will improve the accountability of strata management services, ensure buildings are properly maintained and make strata living more accessible and equitable.
Strata living is becoming an essential part of the New South Wales housing landscape. With more than 86,000 strata schemes in the State, projections suggest that within 15 years 50 per cent of our population will live in strata developments. Meeting our housing targets demands that we not only build more homes but also ensure strata living is an attractive option, underpinned by robust governance and public trust. The Government has already introduced landmark reforms in housing, including measures for planning, building quality and rental affordability. The Strata Legislation Amendment Act 2023 and the Strata Managing Agents Legislation Amendment Act 2023 laid the groundwork for this bill. Key reforms in the bill strengthen accountability to ensure trust in strata managing agents and building managers. The bill prohibits liability avoidance clauses in management agreements, except when they are covered by professional standards schemes.
The bill increases the reporting frequency by managers to improve transparency and enables the termination of agreements if agents or managers operate unlawfully. The bill also imposes a statutory duty on building managers to act in the best interests of the owners' corporation, reinforcing accountability and trust within the sector. Many owners' corporations are run by volunteers without legal expertise, leaving them vulnerable to unfair contracts. The bill prohibits unfair terms in standard contracts for goods, services or land sales to owners' corporations by aligning with the Fair Trading Act 1987. This change ensures that suppliers comply with fair contract standards, providing owners with stronger consumer protections.
The bill will improve the governance of committees by ensuring that strata and association committee members are tasked with acting for the benefit of owners' corporations. However, concerns about poor performance have prompted additional obligations in the bill, including acting with honesty and fairness and complying with relevant laws. Mandatory training will be rolled out to support committee members in meeting these new standards. The bill tackles noncompliance in maintaining common property by preventing the deferral of essential repairs that affect safety or access. The bill mandates that 10-year capital works plans meet minimum requirements to avoid unexpected financial burdens. It also extends the time for lot owners to claim damages from two to six years.
The bill empowers NSW Fair Trading to enforce compliance with maintenance obligations. These changes aim to protect residents from the financial and physical consequences of poor maintenance. The bill also addresses longstanding issues with initial maintenance schedules, which are often inaccurate or misleading, leading to underfunded levies. New requirements include the independent certification of schedules and levy estimates and higher penalties for developers who fail to comply. These measures will ensure a smoother transition for new owners' corporations. For utility supply contracts, embedded networks often lock strata residents into uncompetitive contracts. The bill extends protections under section 132A of the Strata Schemes Management Act to embedded networks, enabling owners' corporations to seek better deals.
The bill introduces a balanced approach to levy non-payment and ensures that an owner in financial hardship receives support while maintaining a scheme's financial stability. Reforms include mandatory levy notices with information on payment plans and financial counselling, as well as easier access to payment plans, with protection from debt recovery while plans are active. The bill promotes environmental sustainability by prohibiting by-laws that reject sustainability infrastructure, such as solar panels or electric vehicle chargers, based on appearance alone. Annual discussions on energy and water efficiency will be mandated. The bill also lowers voting thresholds for changes to common property to accommodate residents with disabilities. Now only a simple majority will be required for accessibility-related modifications. These reforms are vital in creating inclusive communities that cater to all residents.
The Strata Schemes Legislation Amendment Bill 2024 represents a significant step in modernising strata living in New South Wales. These reforms will uplift the governance, sustainability and accessibility of strata schemes while protecting the interests of residents. The bill is a testament to the Government's commitment to improving the lives of the people of New South Wales and ensuring that strata living remains a viable and attractive housing option. I commend the bill to the House.
Mr WARREN KIRBY (Riverstone) (16:57:17):
I speak in strong support of the Strata Schemes Legislation Amendment Bill 2024. There are now more than 86,000 strata schemes in New South Wales. This number will continue to grow as New South Wales builds up to meet housing demands. Behind all those schemes are ordinary owners who rely on their strata agent and building manager to help them manage their strata. In Riverstone there is an explosion of strata schemes coming into the area. Large swathes of land that were once home to cattle and market gardens have become unit towers, particularly in the suburbs of Schofields and Tallawong. We have heard many stories in the media about some strata agents not acting in the best interests of their clients or the owners' corporation. I have received some of those complaints through my office. Owners should not have to worry about whether their agent or building manager is acting in their best interests.
This bill includes reforms to increase protections for owners' corporations and improve accountability and confidence in strata managing agents and building managers. The bill adds to the reforms passed by the Government in September last year that increased agent's disclosure requirements around conflicts of interests. I will address the specific reforms contained in the bill.
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