NSW Strengthens Strata Laws to Safeguard Communities
New Reforms Aim to Enhance Governance and Protect Owners
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The New South Wales Government has initiated a series of reforms to the state's strata laws, aiming to bolster transparency and accountability within strata communities.
These changes come in the wake of significant fraud incidents that have raised concerns about the governance standards in strata schemes.
In April 2026, the government introduced the latest phase of its ongoing program to modernise strata regulations. This initiative seeks to provide greater confidence to residents living in strata properties by implementing stronger protections against fraudulent activities and enhancing the oversight of strata managers.
A notable case that underscored the need for these reforms involved a former strata manager in Coffs Harbour, who allegedly misappropriated over $2 million from multiple strata scheme accounts. An investigation by NSW Fair Trading revealed 398 fraudulent transactions affecting 66 strata plans between February and December 2024. Consequently, the individual's licence was cancelled, and they were permanently disqualified from the property and strata industry in NSW.
To prevent such incidents in the future, the government has allocated $8.4 million to establish a dedicated Strata and Property Services Taskforce. This taskforce is responsible for enforcing compliance, conducting unannounced inspections, and addressing misconduct within the industry. Additionally, a 'Name and Shame' register has been introduced to publicly identify agents facing disciplinary action, enabling property owners to make informed decisions when selecting strata professionals.
These reforms are part of a broader effort to enhance the governance and accountability of strata schemes across New South Wales. By implementing stricter regulations and oversight mechanisms, the government aims to protect the interests of property owners and ensure the integrity of strata communities.
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