Introduction
As of 1 July 2025, significant updates to the Strata Schemes Management Act 2015 (NSW) have introduced a range of new legal duties and compliance requirements for strata committees in NSW. While many of these responsibilities were previously considered best practice, the 2025 NSW strata law reforms have now codified them into formal, legally enforceable obligations.
For any strata committee member, understanding these changes is crucial for functioning effectively and acting in the best interests of the owners corporation. This guide provides a comprehensive overview of the new statutory duties, mandatory training, and specific responsibilities that now impact every strata committee in NSW.
Understanding the New Statutory Duties for Strata Committee Members
Acting with Honesty Fairness & Due Care
Under the NSW strata law reforms effective from 1 July 2025, strata committee members are now legally required to exercise their functions with honesty, fairness, due care, and diligence. This represents a significant shift as these standards have evolved from being merely expected behaviours to becoming legally enforceable duties.
The core responsibilities now require committee members to:
- Be conscientious and thorough when performing their role
- Take their responsibilities seriously
- Ensure the scheme is managed for the benefit of all owners
This transition from best practice to legal requirement means committee members now face a higher standard of accountability in all their decision-making and actions.
Acting in the Best Interests of the Owners Corporation
A fundamental obligation introduced by the NSW strata reforms is the requirement for every committee member to act for the benefit of the owners corporation as a whole. This duty ensures that decisions prioritise the collective interest of all lot owners, rather than serving personal interests of individual members or specific groups within the strata scheme.
This principle reinforces that the committee’s primary function is to manage the strata scheme effectively and equitably. Consequently, all actions taken and decisions made must be guided by what best serves the entire community, thereby promoting a fair and cohesive living environment.
Complying with Strata Laws & Handling Confidential Information
The recent strata law changes place a clear legal duty on committee members to comply with the Strata Schemes Management Act 2015 (NSW) and its associated regulations. This ensures that all committee operations and decisions align with the established legal framework governing strata schemes in NSW.
Furthermore, members have specific responsibilities regarding confidential information they may receive in their role. These duties include:
| Duty Regarding Information | Description |
|---|---|
| Proper Use | Information obtained as a committee member can only be used or disclosed to carry out official committee functions. |
| Legal Compliance | Disclosure is also permitted if it is required for another reason allowed under the law. |
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The Shift to Legally Enforceable Obligations
From Expected Conduct to Legal Requirements
The NSW strata law changes that came into effect on 1 July 2025 represent a significant shift in governance for strata schemes. This transformation has fundamentally altered the nature of strata committee responsibilities in several important ways:
| Concept | Explanation |
|---|---|
| Formalisation of expectations | What were previously considered standard expectations for committee members have now been codified into legally binding requirements. |
| Legal enforceability | Best practices that were once merely recommended are now enforceable legal obligations. |
This shift means committee members must now approach their duties with heightened awareness of their legal responsibilities and potential consequences for non-compliance.
Potential Consequences for Breaching New Duties
With these duties becoming legal requirements under NSW strata law, committee members now face tangible consequences for failing to meet their obligations:
| Consequence | Description |
|---|---|
| Penalties | Non-compliance can result in the imposition of penalties, holding members to a higher standard of accountability than before. |
| Removal mechanisms | There are now two primary ways a committee member can be removed: Through a general resolution at a meeting by the owners corporation by order of the NSW Civil and Administrative Tribunal for strata disputes involving serious misconduct or failure to exercise due care and diligence |
These enforcement mechanisms ensure that committee members fulfil their legal obligations and maintain appropriate standards of conduct in their governance roles.
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Mandatory Training for All Committee Members
The New Compulsory Training Program
The 2025 NSW strata law reforms introduce a significant new requirement for all strata committee members to undertake mandatory training. This compulsory program is designed to ensure every committee member fully understands their new statutory duties and responsibilities.
By completing the training, members will be better equipped to act in the best interests of the owners corporation. This initiative marks the first time that training has become a legal requirement for strata committee members.
The NSW Government is currently developing the specifics of the training program, which will be outlined in the regulations. It is anticipated that this training will:
- Be provided as a complimentary service
- Support committee members in meeting their obligations under the updated NSW strata law
- Ensure members understand their legal responsibilities
Loss of Position for Failing to Complete Training
The consequences for failing to comply with the new training requirement are significant. Under the strata reforms that came into effect on 1 July 2025, any strata committee member who does not complete the mandatory training will automatically cease to be a member of the committee.
This strict measure underscores the importance the NSW strata law places on having informed and capable individuals managing strata schemes. It ensures that all active committee members have a foundational understanding of their legal duties, promoting better governance and accountability across all strata communities.
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New Responsibilities for the Committee Chairperson
Ensuring Order & Adherence to the Agenda
The 2025 NSW strata law reforms have formalised the responsibilities of the strata committee chairperson, providing clear legal backing to their authority during meetings. A key duty is to preside over meetings, ensuring they are conducted in an orderly and efficient manner.
The chairperson is now legally required to manage several procedural aspects to maintain structure. These responsibilities include:
| Responsibility | Detail |
|---|---|
| Following the Agenda | The chairperson must guide the meeting according to the set agenda, ensuring all items are addressed systematically. |
| Maintaining Order | It is the chairperson’s duty to keep discussions respectful and focused, preventing meetings from becoming disorderly. |
| Ruling on Procedural Matters | This includes making decisions on points of order and confirming that a quorum is present for the meeting to proceed and for votes to be valid. |
Facilitating Fair & Constructive Discussion
Beyond procedural management, the NSW strata law now requires the chairperson to actively foster a positive and productive environment for decision-making. This involves encouraging fair, constructive, and open discussions among all attending owners.
The chairperson must strike a balance between:
- Encouraging participation from all owners
- Ensuring conversations remain productive
- Keeping discussions aligned with the meeting’s objectives
While open dialogue is encouraged, the ultimate purpose is to facilitate effective decision-making for the benefit of the owners corporation, rather than hosting a town-hall-style debate.
Conclusion
The 2025 NSW strata law reforms have introduced significant, legally enforceable duties for strata committee members, covering standards of conduct, mandatory training, and compliance with the Strata Schemes Management Act 2015 (NSW). These changes formalise responsibilities for all members and the chairperson, aiming to improve governance and accountability within every NSW strata scheme.
To ensure your strata committee is fully compliant with these new legal requirements, contact PBL Law Group’s expert strata lawyers for guidance. Our experienced team provides trusted advice to help your committee navigate these obligations effectively and confidently.
Frequently Asked Questions
