Introduction

The New South Wales government is transforming strata laws to improve transparency and protect owners. These changes are part of two major pieces of legislation: the Strata Managing Agents Legislation Amendment Act 2024 (NSW) and the Strata Schemes Legislation Amendment Act 2025 (NSW). These new laws are the most significant updates since the original Strata Schemes Management Act 2015. They introduce new duties for strata managers and committees, increase penalties for non-compliance, and provide clearer rules for all schemes. Let’s look at these important changes and how to stay compliant.

New Annual Report Requirement for Strata Schemes

While the requirement for annual reporting began in 2022, recent legislative changes emphasise its importance as a key part of NSW Fair Trading’s new data-driven approach to regulation. All strata schemes, including two-lot duplexes, must submit an annual report to the Department of Fair Trading via the Strata Hub online portal. The report must be submitted within three months of each Annual General Meeting (AGM). There is a fee of $3 per lot.

What Needs to Be Reported?

The annual report must include the following details:

• Strata plan number, registration date, address, and the number of lots.
• The date of the most recent AGM.
• Whether an Annual Fire Safety Statement has been issued, along with its issue date.
• Contact details for the owners corporation secretary, chairperson, strata managing agent, building manager, and emergency contact for the strata scheme.
• The current insured replacement value of the building and the balance of the capital works fund.
• The date of issue for the building’s occupation certificate.
• The number of storeys and how the lots are used (e.g., residential, commercial).
• Details concerning the strata renewal committee.

Implementation and the Strata Hub

The NSW Government’s “Strata Hub” is now the central online portal for all of this information. This hub centralises key data, allowing NSW Fair Trading to better regulate the strata sector. Owners and potential buyers can use the hub to access information on specific buildings.

Compliance and Penalties

It is essential to meet the reporting deadlines. Failing to submit an annual report on time can result in fines up to $5,500. Additionally, if your owners corporation provides incorrect information and does not update it on the Strata Hub within 28 days of becoming aware of the mistake, it can be fined up to $2,200.

Furthermore, there is an ongoing obligation to update any incorrect information provided and to notify Fair Trading of any changes in key personnel or the establishment of a strata renewal committee.

Owners corporations must take these new obligations seriously to avoid financial penalties and ensure they remain compliant with the updated regulations under the Strata Schemes Management Act.

Practical Tips for Complying with Strata Annual Reporting Requirements 

To ensure compliance with the new reporting requirements for strata schemes in NSW, here are some practical tips that can help streamline the process and avoid potential fines:

Designate the Correct Reporter

Ensure that the scheme’s secretary, chairperson, or strata manager is responsible for completing the reporting. These roles are typically best informed about the details of the strata scheme and are most qualified to handle official communications.

Utilise the Correct Reporting Channel

All reporting should ideally be done online through the Strata Hub via a MyService NSW account. If you do not have an account, create one at Service NSW’s website. For those unable to report online, submissions can be made in person at a Service NSW Centre. Assistance can be sought by calling 13 77 88 for the nearest location.

Prepare Necessary Information

• Basic Strata Details: Have your strata plan number, the registered address, the number of lots, and the date of the last AGM on hand.
• Contact Details: Gather and prepare the contact details of key strata administration personnel including the secretary, chairperson, managing agent, building manager, and emergency contact.
• Strata Financials: Ensure all financial details related to the administration fee and other relevant financial information are readily available.
• Building Details: Know the specifics of your building such as the number of floors, fire safety compliance status, and any other pertinent details that may be required.

Handling Incomplete Information

If certain required information is not available or cannot be discovered, the reporting form allows for these fields to be marked as ‘not found or undiscoverable’. This should be used sparingly and only when all reasonable efforts to obtain the information have failed.

By following these tips, strata schemes can ensure they meet the requirements set forth by the Department of Fair Trading and maintain good standing. Always remember that staying proactive and organised is key to managing strata reporting efficiently.

Reporting Multiple Schemes? This is What You Can Do.

For strata managers handling multiple schemes, the Strata Hub offers a reporting API that can be integrated with strata management software to streamline the process. This feature significantly reduces the administrative burden of manual reporting.

Software Integration for Reporting

Strata managers can directly report from their strata management software if it’s integrated with the Strata Hub using the reporting API. To utilise software integration, strata managers should coordinate with their software providers to ensure compatibility and integration with the Strata Hub.

Thereafter, strata managers need to register on the Strata Hub and complete the proof of identity process. Despite the automation, strata managers must manually complete privacy declarations, review the information, and process payments for each scheme on the Strata Hub. This ensures adherence to privacy, security, and payment processing standards.

Manual Reporting Option

Strata managers not using software integration can manually enter information for each scheme individually on the Strata Hub’s annual reporting page.

Downloading Scheme Lists

Strata managers can download a list of their schemes from the Strata Hub to monitor annual reporting deadlines. To access this list, you may log in to the Strata Hub, navigate to the ‘My strata schemes’ dashboard, and download a list. Sort and cross-check this data with internal records to track AGM dates and reporting deadlines.

Bulk Operations

The bulk upload feature allows entering annual reporting data for multiple schemes in one session, but privacy notices and declarations must still be completed individually.

Payments of the administrative fee ($3 per lot) must be made individually for each scheme, allowing precise financial management but precluding a single bulk payment option.

Strata managers can update reported information for multiple schemes via API, requiring coordination with their software providers for API implementation.

By leveraging these tools and processes, strata managers can efficiently handle the reporting requirements for multiple schemes, ensuring compliance with NSW regulations and optimising their operational workflow.

Broader Strata Reforms of 2024-2025

Recent legislative changes go far beyond just annual reporting. The Strata Managing Agents Legislation Amendment Act 2024 and the Strata Schemes Legislation Amendment Act 2025 impose new obligations and introduce significant protections for lot owners.

New Duties for Committees and Managers: Strata committee members now have new legal duties to act honestly, fairly, and with due care. Strata managers must also provide more frequent and detailed reports, including a comprehensive activity report to the owners corporation every six months. They are also required to disclose any commissions or benefits they receive and must provide at least three strata insurance quotes.

Enhanced Protections for Owners: New laws make it easier for owners to get help with financial hardship. Owners corporations must now consider all requests for payment plans and give at least 30 days’ notice before taking legal action for unpaid levies (up from 21 days). The law also extends the time limit for an owner to claim damages against the owners corporation for a failure to maintain common property from two years to six years.

Increased Enforcement: NSW Fair Trading has new powers to address an owners corporation’s failure to maintain common property, including the ability to issue compliance notices. The penalties for many offences have also increased. For example, a strata managing agent who breaches their obligations can now face a fine of up to 500 penalty units for a corporation.

Conclusion

For strata schemes in New South Wales, adhering to the new reporting requirements is not just about compliance; it’s about participating in a system that enhances the integrity and transparency of property management state-wide. By ensuring that all required information is accurately and promptly submitted, strata schemes can avoid the risks of penalties and contribute to a more informed and efficient property market. Should you need further assistance or have questions about navigating these new requirements, contact PBL Law Group’s expert strata lawyers for owners corporations and strata managers to ensure your scheme is fully compliant.

Frequently Asked Questions (FAQ)