Strata living is reshaping Sydney’s urban landscape, with high-density residential buildings becoming the cornerstone of the city’s growth. With over 1.2 million people already living in strata communities across New South Wales (NSW), and more expected as urbanisation accelerates, the state government has introduced significant reforms to strata laws in 2025. These changes aim to improve governance, streamline dispute resolution, and prioritise sustainability in multi-unit developments, particularly in Sydney’s urban growth areas like Parramatta, Blacktown, and the Inner West. This article dives into the recent NSW strata law reforms, offering practical insights for strata owners, residents, and committees navigating these changes. Whether you’re a first-time buyer, a seasoned investor, or a strata manager, understanding these updates is key to thriving in Sydney’s evolving high-density residential landscape. Follow us on X at @ElymentGroup (https://x.com/ElymentGroup) or visit elyment.com.au (https://elyment.com.au) for more property insights. Why Strata Law Reforms Matter for Sydney’s Urban Growth Sydney’s urban growth areas are booming, driven by the need to accommodate a population projected to reach 6.6 million by 2036. High-density residential buildings, such as apartments and townhouses, are critical to meeting this demand. However, managing these complex strata schemes comes with challenges, from governance disputes to sustainability concerns. The NSW government’s 2025 strata law reforms, introduced through the Strata Schemes Legislation Amendment Bill 2024, address these issues head-on. Building on recommendations from the 2021 statutory review of the Strata Schemes Management Act 2015, these reforms aim to: Enhance transparency and accountability in strata governance Simplify dispute resolution processes Promote sustainable practices in multi-unit developments These changes are particularly relevant for Sydney’s urban growth areas, where new strata schemes are rapidly emerging. Let’s explore the key updates and what they mean for you. Key Changes in NSW Strata Law Reforms for 2025 1. Strengthened Governance for Strata Committees Strata committees play a pivotal role in managing multi-unit developments, but inconsistent decision-making has often led to disputes. The 2025 reforms introduce stricter governance standards to ensure fairness and accountability. Mandatory Training for Committee Members: Strata committee members must now complete prescribed training to understand their roles and responsibilities. Failure to comply may result in automatic removal from the committee. Director-Like Duties: Committee members are now held to standards similar to company directors, requiring them to act with honesty, fairness, and due diligence in the best interests of the owners corporation. Enhanced Transparency: Strata managers must provide detailed reports every six months, disclosing connections with suppliers, developers, or insurers, ensuring owners are fully informed. These changes empower strata committees to make informed decisions, fostering trust among residents and owners in high-density buildings. 2. Streamlined Dispute Resolution Processes Disputes in strata communities—whether over by-laws, renovations, or maintenance—are common. The 2025 reforms simplify how these issues are resolved, reducing stress and costs for all parties. Expanded Role for NSW Fair Trading: NSW Fair Trading now has greater authority to investigate and resolve common property maintenance disputes, offering an alternative to costly legal proceedings. Clearer By-Law Enforcement: Owners corporations can enforce by-laws more effectively, with updated processes for addressing breaches, such as unauthorised parking or noise complaints. Support for Assistance Animals: Residents requesting approval for assistance animals need only provide one form of evidence, such as a health practitioner’s statement, making the process fairer and less bureaucratic. These updates ensure disputes are resolved quickly and equitably, creating harmonious living environments in Sydney’s high-density developments. 3. Sustainability Requirements for a Greener Future Sustainability is a top priority in Sydney’s urban growth areas, where high-density buildings contribute significantly to energy and water consumption. The 2025 reforms mandate eco-friendly practices to reduce environmental impact. Ban on Restrictive By-Laws: By-laws that prohibit sustainability infrastructure, such as solar panels or electric vehicle (EV) charging stations, due to aesthetic concerns are now banned, except for heritage-listed properties. Mandatory Sustainability Discussions: Owners corporations must include an agenda item at each Annual General Meeting (AGM) to review energy and water consumption and explore sustainable upgrades. Capital Works Fund Planning: Strata schemes must factor in the costs of installing or maintaining sustainability infrastructure, like energy-efficient fixtures, when preparing their 10-year capital works fund estimates. These measures align with Sydney’s push for greener urban living, helping strata communities reduce costs and enhance property values over time. How These Reforms Impact Sydney’s Urban Growth Areas Sydney’s urban growth areas, including Green Square, Rhodes, and Wentworth Point, are hubs for new high-density residential developments. The 2025 strata law reforms directly address the unique challenges of these areas: Improved Governance for Large Schemes: Large-scale strata schemes, common in urban growth areas, benefit from stricter committee oversight and mandatory training, ensuring professional management. Faster Dispute Resolution: With thousands of residents in close quarters, disputes can escalate quickly. The expanded role of NSW Fair Trading helps resolve issues before they spiral. Sustainability as a Priority: High-density buildings in urban growth areas consume significant resources. The reforms encourage sustainable upgrades, making these communities more attractive to eco-conscious buyers and renters. For example, in Parramatta, where mid-rise apartment blocks are transforming the skyline, strata committees are already adopting solar panels and EV charging stations, thanks to the relaxed by-law restrictions. Practical Tips for Navigating the 2025 Strata Law Reforms Adapting to these changes requires proactive steps from strata owners, residents, and managers. Here’s how you can stay ahead: Review Your Strata By-Laws: Check your scheme’s by-laws to ensure they comply with the new sustainability and accessibility requirements. Update them if necessary through a special resolution at an AGM. Engage with Your Strata Committee: Attend AGMs and participate in discussions about governance and sustainability. If you’re a committee member, complete the mandatory training promptly. Leverage NSW Fair Trading Resources: Visit the NSW Government Strata Hub (https://www.nsw.gov.au) for guides, templates, and updates on the reforms. Plan for Sustainability Upgrades: Work with your owners corporation to budget for eco-friendly infrastructure, such as water-efficient fixtures or EV charging stations, to future-proof your building. Seek Professional Advice: Consult a strata lawyer or manager for tailored guidance on compliance and dispute resolution. Firms like Elyment Group (https://elyment.com.au) (@ElymentGroup) offer expert support for navigating strata complexities. By staying informed and proactive, you can ensure your strata scheme thrives under the new laws. Key Takeaways Governance: Strata committees face stricter standards, with mandatory training and director-like duties to enhance transparency and accountability. Dispute Resolution: NSW Fair Trading’s expanded role and clearer by-law enforcement streamline conflict resolution in strata communities. Sustainability: Bans on restrictive by-laws and mandatory AGM discussions promote eco-friendly practices in high-density buildings. Urban Growth Impact: The reforms support Sydney’s urban growth areas by fostering professional management and sustainable living. Next Steps for Strata Owners and Residents The 2025 NSW strata law reforms are a game-changer for high-density residential buildings in Sydney’s urban growth areas. To make the most of these changes, start by reviewing your strata scheme’s compliance with the new rules. Engage with your strata manager, attend AGMs, and explore sustainable upgrades to enhance your property’s value. For expert guidance on navigating these reforms, connect with Elyment Group (https://elyment.com.au) on X at @ElymentGroup (https://x.com/ElymentGroup). Stay informed, stay compliant, and thrive in Sydney’s vibrant strata communities.