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New laws requiring strata managers to disclose financial relationships and potential conflicts of interest to property owners have come into effect in NSW.
The reforms introduce stricter disclosure requirements, mandating that strata managers provide clear and timely information about their connections with suppliers and developers.
This includes a detailed breakdown of insurance quotes, commissions and broker fees, as well as real-time reporting of any new conflicts of interest that arise during their appointment.
NSW Fair Trading will oversee compliance with the new regulations.
It will require strata managers to review past disclosure practices, address any gaps, and implement measures to ensure ongoing compliance with timely and accurate reporting.
Failure to meet these requirements could result in penalties of up to $110,000.
Property owners are encouraged to familarise themselves with the changes and engage with their strata managers to understand how the reforms may affect their schemes.
NSW Fair Trading has indicated that targeted compliance operations and education initiatives will support the implementation of these laws and strengthen consumer confidence in the strata sector.
The changes are part of the second tranche of reforms passed by the government as a broader effort to improve strata management in NSW.
Minister for Better Regulation and Fair Trading, Anoulack Chanthivong, stated that the reforms are designed to provide strata property owners with greater confidence and clearer decision-making processes.
“Strata owners deserve clear, timely and honest information from their managers, and these laws provide a vital step in restoring trust and supporting better decision-making for strata communities,” Chanthivong said.
A third tranche of proposed reforms, currently under debate in Parliament, aims to increase accountability for developers and ensure initial strata levies are accurate.
It will also introduce financial hardship provisions for owners struggling with payments and protect against unfair contract terms.
Fair Trading Commissioner, Natasha Mann, emphasised the importance of industry compliance, given that NSW has more than 87,000 strata schemes and 1.2 million residents.
“We will be working to educate the industry on their obligations and monitor compliance with NSW strata laws, with penalties of up to $110,000 for those flouting the law,” she said.
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