NSW Government Introduces Strata Law Reforms to Safeguard Communities

In April 2026, the government introduced new measures designed to provide stricter oversight of strata managers and offer stronger protections for property owners. This initiative is part of a broader effort to modernise strata regulations and address the evolving needs of stakeholders.

A notable case that underscored the necessity for these reforms involved Jessica Marrie Carah, a former strata manager from Coffs Harbour. Investigations revealed that Carah transferred over $2 million from multiple strata scheme accounts into her personal account. NSW Fair Trading's inquiry uncovered 398 fraudulent transactions affecting 66 strata plans between February and December 2024. Consequently, Carah's licence was revoked, and she was permanently disqualified from the NSW property and strata industry.

To prevent such misconduct in the future, the government has implemented several key reforms:

• Enhanced Disclosure Requirements: Strata agents are now mandated to disclose any conflicts of interest, with increased penalties for non-compliance.
• Maintenance Dispute Resolution: Regulators have been granted stronger powers to intervene in maintenance disputes, ensuring timely and fair resolutions.
• Protection Against Unfair Contracts: New safeguards have been introduced to prevent unfair contract arrangements, offering better protection to property owners.
• Support for Financial Hardship: Measures have been established to assist owners facing financial difficulties with strata levies, promoting financial stability within communities.
• Accountability Standards for Building Managers: New standards have been set to ensure building managers operate with greater transparency and responsibility.

Looking ahead, the government plans to introduce additional reforms, including mandatory training for strata committee members and the disclosure of exclusive supply networks in off-the-plan sales contracts. A significant proposal under consideration is the transition from a commission-based model to a direct fee-for-service structure for strata insurance. This change aims to enhance trust and transparency between strata managing agents and property owners.

These reforms are expected to have a profound impact on the strata industry, fostering a more transparent and accountable environment that prioritises the interests of property owners and residents.