Strata Schemes Management Act 2015 (NSW)
Strata schemes must comply with budget, AGM, sinking fund + management requirements.
Who must comply
Owners corporations of NSW strata schemes, acting through their strata committees (secretary, treasurer, chairperson) or a licensed strata managing agent to whom functions are delegated. Two-lot schemes can resolve unanimously not to keep a capital works fund and, from 1 October 2026, are exempt from annual reporting.
What triggers it
Registration of a strata plan in NSW and each annual general meeting cycle; changes to scheme contacts or the formation of a strata renewal committee.
When due
Budget and levies set each year; Strata Hub annual report within 3 months of the AGM (fee $3 per lot); contact or strata renewal committee changes updated within 28 days; 10-year plan reviewed at least every five years with changes approved at the AGM; records retained for seven years.
Evidence required
Approved annual budget and levy notices; administrative and capital works fund statements; current 10-year capital works fund plan in the standard form; AGM and committee minutes; up-to-date strata roll; insurance policy and replacement valuation; Strata Hub reporting confirmation; electronic financial records, receipts, invoices and bank statements kept for seven years; strata manager's records of the functions it exercised.
Max penalty
Penalties for owners corporations and strata managing agents are set in the Strata Schemes Management Act 2015 (NSW) and related licensing law and were not restated here. Disputes about records, levies or by-laws go to NSW Fair Trading mediation and then the NSW Civil and Administrative Tribunal.
Summary
The Strata Schemes Management Act 2015 (NSW) sets the governance duties of every owners corporation. Each scheme must set an annual budget, approved by owners at a meeting, that determines levies; keep an administrative fund for day-to-day costs and insurance and a capital works fund (formerly the sinking fund) guided by a 10-year capital works fund plan, in the standard form and reviewed at least every five years; and keep financial records, the strata roll, minutes and correspondence for seven years, electronically for records created from 11 June 2024. Schemes must also complete annual reporting in the NSW Strata Hub within 3 months of each annual general meeting, covering contacts, emergency contacts, lot usage, insured replacement value and the capital works fund balance. From 1 October 2026 two-lot schemes no longer report annually.
Enforced by
Topics
Related
- NSWUnderquoting prohibition (NSW Property and Stock Agents Act 2002)NSW real estate agents must not underquote — Maximum penalty $22,000.
- CWLTHHold a current real estate agent licence (state-specific)Selling agents must hold a current licence issued by their state fair trading regulator.
- VICUnderquoting prohibition (Vic Estate Agents Act 1980)Vic real estate agents must not underquote a property sale price.
Reading
Frequently asked questions
- Who must comply with Strata Schemes Management Act 2015 (NSW)?
- Owners corporations of NSW strata schemes, acting through their strata committees (secretary, treasurer, chairperson) or a licensed strata managing agent to whom functions are delegated. Two-lot schemes can resolve unanimously not to keep a capital works fund and, from 1 October 2026, are exempt from annual reporting.
- What triggers Strata Schemes Management Act 2015 (NSW)?
- Registration of a strata plan in NSW and each annual general meeting cycle; changes to scheme contacts or the formation of a strata renewal committee.
- When is Strata Schemes Management Act 2015 (NSW) due?
- Budget and levies set each year; Strata Hub annual report within 3 months of the AGM (fee $3 per lot); contact or strata renewal committee changes updated within 28 days; 10-year plan reviewed at least every five years with changes approved at the AGM; records retained for seven years.
- What is the maximum penalty for Strata Schemes Management Act 2015 (NSW)?
- Penalties for owners corporations and strata managing agents are set in the Strata Schemes Management Act 2015 (NSW) and related licensing law and were not restated here. Disputes about records, levies or by-laws go to NSW Fair Trading mediation and then the NSW Civil and Administrative Tribunal.
- What evidence is required for Strata Schemes Management Act 2015 (NSW)?
- Approved annual budget and levy notices; administrative and capital works fund statements; current 10-year capital works fund plan in the standard form; AGM and committee minutes; up-to-date strata roll; insurance policy and replacement valuation; Strata Hub reporting confirmation; electronic financial records, receipts, invoices and bank statements kept for seven years; strata manager's records of the functions it exercised.
Source: https://www.nsw.gov.au/housing-and-construction/strata/serving-on-a-committee/finances-insurance. Rules Mate is not a law firm. Always verify against the live regulator source before acting.