Introduction
From 1 July 2025, significant strata law reforms will be introduced in New South Wales under the Strata Schemes Legislation Amendment Act 2025 (NSW). These changes, initiated by the NSW Government, represent a major shift for the strata industry, aiming to improve governance, transparency, and particularly sustainability within strata communities across the state.
For every strata scheme, these new NSW strata laws create significant opportunities to enhance property value through sustainable strata renovations. This guide explores how owners corporations can capitalise on these legislative changes, focusing on the practical steps for implementing green initiatives to achieve long-term cost savings and boost property appeal.
Understanding The 2025 NSW Government Strata Law Reforms
Lowered Voting Thresholds for Sustainability Upgrades in Your Strata Scheme
One of the most significant changes introduced by the New South Wales government’s 2025 strata law reforms is the reduction in the voting threshold required to approve sustainability infrastructure.
Previously, such upgrades required a special resolution, meaning 75% of owners had to vote in favour. As of 1 July 2025, this has been lowered to a simple majority, requiring just over 50% of owners entitled to vote at a general meeting to pass the motion.
This change, part of the Strata Schemes Legislation Amendment Act 2025 (NSW), makes it substantially easier for a strata scheme to gain approval for green initiatives. Projects that may have been blocked by a small number of dissenting owners in the past, such as installing EV chargers or solar panels, now have a much clearer path to approval.
Overriding By-Laws That Restrict Green Initiatives
The strata law reforms taking effect on 1 July 2025 directly address a common barrier to sustainability projects: restrictive by-laws. Under the new legislation, any by-law that prohibits the installation of sustainability infrastructure based solely on its impact on the external appearance of a property is now invalid and unenforceable.
This change empowers owners corporations to proceed with valuable upgrades without being hindered by outdated rules focused on aesthetics. However, there are key exceptions to this provision:
- The rule does not apply to buildings that are heritage-listed.
- It also does not apply to properties located within a designated heritage conservation area.
Mandatory Sustainability Considerations for Strata Communities
The 2025 NSW strata laws embed environmental responsibility into the core governance of strata communities. Owners corporations now face two key requirements:
| Requirement | Details |
|---|---|
| Annual General Meeting (AGM) Agenda Item | Owners corporations must include an item to consider the environmental sustainability of their strata scheme at each AGM. This discussion must involve a review of the common property’s energy and water consumption and expenditure. |
| Capital Works Fund Planning | When preparing annual estimates for the capital works fund, owners corporations must consider the costs associated with the installation, repair, or replacement of sustainability infrastructure. |
These requirements ensure that green initiatives are treated as a core component of long-term building management and not just an afterthought.
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Capitalising on Green Opportunities in Your Strata Scheme
Installing Solar Panels & Reducing Energy Costs
The New South Wales strata law reforms effective from 1 July 2025 present a significant opportunity for strata schemes to invest in solar power. Installing solar panels allows a strata community to reduce its reliance on the traditional energy grid, leading to lower long-term energy costs for all residents.
Under the new legislation, solar panels are classified as sustainability infrastructure. This classification is crucial because it substantially lowers the voting threshold required for approval:
| Voting Requirement Status | Threshold for Approval |
|---|---|
| Previous | A 75% special resolution was required. |
| From 1 July 2025 | A simple majority vote (over 50%) is now required. |
This change makes it far more achievable for proactive owners corporations to adopt renewable energy solutions and begin realising the benefits of sustainable power generation.
Implementing Electric Vehicle EV Charging Infrastructure
With the number of electric vehicle (EV) owners steadily increasing, installing EV charging stations, which often requires a specific electric vehicle charging by-law, is a practical way to future-proof a strata building and enhance its appeal. The 2025 strata law reforms directly facilitate this by classifying EV charging infrastructure as a sustainability upgrade.
This classification is a key change in the new NSW strata laws, as it means:
- The installation of EV chargers no longer requires a special resolution
- A motion to approve this highly sought-after amenity can be passed with a simple majority vote at a general meeting
These changes make it significantly easier for strata communities to cater to the evolving needs of residents and add tangible value to their property.
Adopting Other Sustainable Building Materials & Practices
Beyond major installations like solar panels and EV chargers, the strata legislation amendment encourages a broader range of green initiatives. The definition of sustainability infrastructure is extensive, empowering strata schemes to implement various upgrades that enhance efficiency and reduce their environmental footprint.
These more accessible sustainable practices include:
| Sustainable Practice | Description |
|---|---|
| LED Lighting Upgrades | Switching to LED lighting throughout common areas can substantially cut electricity consumption and reduce ongoing maintenance overheads. |
| Water-Saving Initiatives | Installing water-efficient fixtures or smart irrigation systems for gardens helps to lower water usage and utility bills for the entire strata scheme. |
| Sustainable Materials | When planning renovations or repairs, owners corporations can now more easily opt for sustainable building materials that contribute to the building’s long-term environmental performance. |
| Waste Reduction and Recycling | The reforms support changes to common property designed to reduce the amount of waste sent to landfill and increase the recovery of recyclable materials. |
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The Financial Benefits of Sustainable Strata Renovations
Reducing Long-Term Costs & Levies for Your Strata Community
Integrating sustainability into your strata scheme is a strategic financial decision, not just an environmental one. The strata renovations encouraged by the 1 July 2025 NSW strata laws can lead to significant long-term savings on operational expenses for the entire strata community.
By aligning capital works planning with environmental goals, sustainability becomes part of the budget rather than an afterthought. These upgrades can directly lower costs and help stabilise or even reduce strata levies over time.
Key examples of cost-saving initiatives include:
| Cost-Saving Initiative | Financial Benefit |
|---|---|
| Solar Panel Installations | By generating its own electricity, a strata scheme can reduce its reliance on the grid, leading to substantially lower long-term energy costs for common property areas. |
| LED Lighting Upgrades | This straightforward renovation cuts electricity consumption and reduces maintenance overheads due to the longer lifespan of the bulbs. |
| Water-Saving Fixtures | Implementing smart irrigation systems and efficient plumbing fixtures can lead to a noticeable reduction in water utility bills for the owners corporation. |
Increasing Property Appeal & Market Value
Sustainable strata renovations do more than just save money on bills; they actively add value to your property. As environmental consciousness grows, green amenities are becoming increasingly important to potential buyers and tenants.
These eco-friendly features make buildings more appealing in the competitive real estate market. Future-proofing your building with modern, sustainable infrastructure can directly increase its market value and enhance rental returns.
For instance, installing EV charging infrastructure caters to the growing number of EV owners, making your strata scheme a more attractive option for a key demographic. Embracing sustainability is a clear strategy that enhances the overall value and desirability of properties within your New South Wales strata scheme.
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Key Considerations Before Starting Sustainability Projects
Assessing Costs Ownership & Maintenance Responsibilities
Before an owners corporation approves a sustainability resolution, it is essential to conduct thorough due diligence. The new strata legislation requires that several key factors are carefully considered to ensure the project is viable and equitable for the entire strata scheme.
Under the NSW strata laws, the owners corporation must evaluate:
| Consideration | Details |
|---|---|
| Total Project Cost | This includes not only the initial installation price but also the anticipated running and ongoing maintenance costs associated with the new infrastructure. |
| Ownership & Maintenance | It must be clearly established who will own the infrastructure, who is responsible for its installation, and who will handle its long-term maintenance and repairs. |
| Availability & Access | The owners corporation must consider the extent to which the new infrastructure will be available to all residents or only to a select number of lots within the strata scheme. |
Drafting Compliant & Future-Proof By-Laws
While the 1 July 2025 strata law reforms have made approvals easier, they have also highlighted the need for robust and well-drafted by-laws. For complex strata renovations like EV charging stations, a comprehensive by-law is crucial to prevent future strata disputes and manage liability.
A well-drafted by-law for sustainability infrastructure should clearly address several key areas:
- Technical Standards: Define the specific types of chargers, cabling, and equipment that can be installed to ensure they are safe and compatible with the building’s electrical capacity.
- Cost Recovery: Establish a clear and transparent ‘user pays’ model that covers all associated expenses, including installation, electricity usage, and maintenance, ensuring non-users are not financially burdened.
- Safety Protocols: Mandate regular safety inspections and outline clear emergency response plans, which are particularly important for installations in enclosed areas like underground car parks.
- Future-Proofing: The by-law should be scalable to accommodate increasing demand as more residents adopt sustainable technologies, potentially incorporating a building-wide load management system.
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Conclusion
The 1 July 2025 strata law reforms in New South Wales present significant opportunities for strata schemes to increase property value by simplifying the approval and implementation of sustainability initiatives. By lowering voting thresholds and overriding restrictive by-laws, these changes empower owners corporations to pursue green renovations that reduce long-term costs and boost market appeal.
To navigate these changes and capitalise on the new opportunities, contact our expert strata law firm PBL Law Group for specialised guidance. Our trusted expertise ensures your strata scheme is not only compliant but also strategically positioned to maximise the financial and environmental benefits of the new legislation.
