New South Wales Strata Scheme Law: Owners Corporations and NCAT

New South Wales calls a multi-lot development a strata scheme, managed by an owners corporation, under the Strata Schemes Management Act 2015 (NSW), with the Civil and Administrative Tribunal (NCAT) as the dispute forum and a staged package of 2025 reforms progressively taking effect.

Information last verified on 21 July 2026 against the primary legislation. This page presents general legal information, not legal advice.

Jurisdiction scope: This page covers strata scheme law in New South Wales only, under the Strata Schemes Management Act 2015 (NSW) as amended, verified 21 July 2026. It does not cover the separate Strata Schemes Development Act 2015 (NSW), which governs how a scheme is created rather than how it is managed, or the law of any other Australian state or territory; see the hub for those.

Terminology and governing law

New South Wales calls the development itself a "strata scheme" and the body that manages it an "owners corporation," made up of the owners of every lot in the scheme. The Strata Schemes Management Act 2015 (NSW) governs how an owners corporation operates: how it meets, how it raises and spends money, what by-laws it can make, and how disputes are resolved. Disputes are decided by the Civil and Administrative Tribunal, universally known as NCAT, which has broad jurisdiction over strata matters under the Act.

The 2025 reforms commenced in stages, not on one date

The Strata Schemes Legislation Amendment Act 2025 (NSW) No 14 was assented to on 2 March 2025. Its own commencement clause only brought a small number of schedule items into force on that date; the rest commence "on a day or days to be appointed by proclamation," and different provisions have in fact come into force at different times through 2025 and into 2026. As at the date this article was verified, the changes described below, the 6-year repair claim limit, the 12-month payment plan cap, and the 30-day recovery notice period, were confirmed in force. A separate change, inserting a new limit on recovering the costs of collecting an unpaid levy (broadly, only after a payment plan has first been offered), had not yet commenced. Because the rollout genuinely happened in stages, this page deliberately does not attach a single date to "the 2025 reforms" as a package; each change is described with its own status.

Pets: the strongest protection in the country

Section 137B provides that a by-law, or an owners corporation decision made under a by-law, "has no force or effect to the extent that it would unreasonably prohibit the keeping of an animal on a lot," and that "it is taken to be reasonable to keep an animal on a lot" unless doing so unreasonably interferes with another occupant's use and enjoyment of their lot or the common property. Section 105A separately bars an owners corporation from requiring a bond, fee, or insurance as a condition of keeping an animal, and section 139A protects assistance animals specifically, limiting what evidence an owners corporation can demand. See pets in strata schemes across Australia for how this compares with every other state.

Repairs: a real duty, with a 2025-amended time limit

Section 106 requires an owners corporation to "properly maintain and keep in a state of good and serviceable repair" the common property, and to renew or replace common property fixtures and fittings. That duty is not unlimited: an owners corporation can resolve, by special resolution, that repairing a particular item is inappropriate where safety and appearance are not affected, and it can defer compliance while pursuing a person responsible for damage. Section 106(6), as amended in 2025 and confirmed in force, caps an owner's right to bring an action for breach of the duty at 6 years from when they first became aware of the loss. This page does not state what limit applied before the 2025 change, since an archived version confirming the earlier figure was not available to check. See repairs to strata common property in Australia for the fuller picture, including how the capital works fund connects to the repair duty.

Levies: interest, payment plans and recovery

Section 85 lets simple interest accrue at 10% a year (or a regulation-prescribed rate) on a contribution unpaid more than a month after its due date, unless the owners corporation resolves otherwise. Since the 2025 amendments, a payment plan agreed between an owner and the owners corporation is capped at 12 months (with a further plan possible after that), and an owners corporation must not, by resolution, refuse payment plans as a blanket policy, though it can still refuse in a particular case. Section 86 lets the Tribunal order payment, or lets the owners corporation recover a debt directly in a court without a Tribunal order, but only after giving at least 30 days' written notice (up from 21 days before the 2025 amendment) of the proposed recovery action, and not while the owner is complying with an agreed payment plan. A further 2025 change limiting recovery of collection expenses to cases where a payment plan was first offered had not commenced as at the date this article was verified. See strata levies across Australia for how this compares with other states.

New investigation and enforcement powers

A new Part 10A, "Investigation and Enforcement Powers," was added by the 2025 amendments, covering definitions and the purposes for which investigation and enforcement functions can be exercised, connected to building compliance issues rather than to levies or day-to-day scheme management. This is a separate strand of the 2025 reform package from the repair, levy and pet-adjacent changes described above.

Where disputes go

Most New South Wales strata disputes, over by-laws, levies, repairs, or an owners corporation decision, are ultimately decided by NCAT if they cannot be resolved directly. Mediation through a Community Justice Centre is available, and NCAT itself can refer parties to mediation before a full hearing. See strata disputes across Australia for how New South Wales' single-tribunal model compares with Queensland's Commissioner-first process and South Australia's Magistrates Court forum.

This page is general legal information about strata, owners corporation, body corporate and community title law in Australia, verified on 21 July 2026. It is not legal advice, and it does not cover every situation or every by-law or scheme rule that may apply to a particular development. For advice about a specific dispute, levy or by-law, consult a legal practitioner admitted in the relevant Australian state or territory.