News Release
15 February 2005

New Strata Laws now in force

Significant changes to NSW strata laws are now in force aimed at keeping pace with the rise in apartment living.

The changes are a response to the growing size, complexity and management expertise needed to run many strata developments, which can sometimes exceed the populations of small towns.

The new laws seek to put strata blocks on more of a business footing and ensure executive committees prepare viable plans for the real costs of running their buildings.

Amongst other things there are compulsory financial audits for large blocks, more stringent rules for sinking funds, and greater accountability by executive committees on how they spend money.

The changes came into effect on 7 February 2005.

These are the key areas affected:
• large schemes
• sinking fund budgets
• legal proceedings
• executive committees
• fire safety
• improvements to common property
• by-law compliance notices
• powers of strata managing agents
• record retention periods.

To find out more, visit the Office of Fair Trading website.