NSW Strata Changes Signal Out with the Old, In with the New

Strata change is one step closer to reality in Sydney with the NSW government’s proposed draft legislation bills out for public review and consultation before final approval late 2015, or early 2016.

The Strata Schemes Development Bill 2015 & Strata Schemes Management Bill 2015 draft documents propose a raft of initiatives designed to open up Sydney’s old apartment blocks to developers for redevelopment (renovation or demolition) if 75% of owners agree to sell.

Currently apartment blocks require 100% owner okay to sell, but if the new strata legislation is green-lighted, then it would open up a lot of Sydney’s older blocks to redevelopment.

The main intention of these strata changes is to rejuvenate the NSW property and construction sectors and set Sydney up to cope with future population increases and housing demands. 

"By 2040, about half of Sydneysiders will be living in strata.The proposed reforms are reflective of present needs and future demands”, says Victor Dominello, the Minister for Fair Trading.

Major Strata Changes 

Implications for Strata Managers

When appointing a strata manager at the first annual, general meeting, a time limit of 1 year will apply.

A 3 year term maximum will apply to re-appointments and new appointments at subsequent annual meetings. 

Accepting gifts or benefits for strata management services will be forbidden, except for commission of course.

Any 3rd part commissions the strata manager has obtained will have to be disclosed.

Strata managers will also have to disclose if they’ve any ties (however tenuous) to the initial owner.

Civil and Administrative Tribunal will receive more power over strata managers. NCAT applications will be able to more easily remove strata managers who have refused or not performed their duties according to their contract.

Are You a Strata Manager, or Live in Sydney? Then Have Your Say

"People can now have their final say on the drafting of more than 90 proposed changes to improve strata living including the perennial issues of parking, pets and passive smoking”, says Mr Dominello. 

This article was originally published on PropertyJobs.com.au