Australia
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.
Frequently Asked Questions
What is a New South Wales strata scheme managed by?
An owners corporation, made up of the owners of every lot in the scheme, under the Strata Schemes Management Act 2015 (NSW).
When did the NSW 2025 strata reforms take effect?
There is no single date. The Strata Schemes Legislation Amendment Act 2025 (NSW) was assented to on 2 March 2025, and its provisions commence by proclamation at different times. Some changes are confirmed in force; at least one, a limit on recovering levy collection costs, had not commenced as at the date this article was verified.
Can my owners corporation ban pets in New South Wales?
Section 137B of the Strata Schemes Management Act 2015 (NSW) presumes keeping an animal is reasonable and voids a by-law to the extent it unreasonably prohibits one. A blanket ban sits awkwardly against that presumption, but whether a specific by-law is valid is for NCAT to decide on the facts.
How long do I have to claim over an unrepaired common property defect?
Section 106(6), as amended in 2025, sets a 6-year limit running from when the owner first became aware of the loss. The earlier limit was 2 years. Schedule 1 item [37] of the Strata Schemes Legislation Amendment Act 2025 No 14 replaced the 2 year figure in section 106(6) with 6 years, so the window for an owner to bring an action tripled.
How much notice must my owners corporation give before recovering unpaid levies?
At least 30 days' written notice under section 86, an increase from 21 days following the 2025 amendments.
Which tribunal decides NSW strata disputes?
The Civil and Administrative Tribunal, NCAT, which has broad jurisdiction over disputes under the Strata Schemes Management Act 2015 (NSW). Mediation through a Community Justice Centre is generally available before or alongside a Tribunal application.
The Law Behind This Article
This article rests on the statutory provisions below, held in our own legal record and retrieved from the official source. Tap a section to read the operative text.
Strata Schemes Management Act 2015 (NSW)
s 105ABonds or fees relating to keeping of animals not payableIn forcecited in 2 of our articles
An owners corporation must not require an owner or occupier of a lot to—(a) pay a bond or fee relating to the keeping of an animal on the lot, or (b) obtain insurance for an animal kept on the lot. Part 6 Property management Division 1 Common property
Official text (excerpt) · last checked 2026-08-14 · Read the full text in our law library · Verify at legislation.nsw.gov.au
Also relied on in: Pets in Strata Schemes and Body Corporates Across Australia
s 106Duty of owners corporation to maintain and repair propertyIn forcecited in 2 of our articles
(1) An owners corporation for a strata scheme must properly maintain and keep in a state of good and serviceable repair the common property and any personal property vested in the owners corporation. (2) An owners corporation must renew or replace any fixtures or fittings comprised in the common property and any personal property vested in the owners corporation. (3) This section does not apply to a particular item of property if the owners corporation determines by special resolution that—(a) it is inappropriate to maintain, renew, replace or repair the property, and (b) its decision will not affect the safety of any building, structure or common property in the strata scheme or detract from the appearance of any property in the strata scheme.
Official text (excerpt) · last checked 2026-08-14 · Read the full text in our law library · Verify at legislation.nsw.gov.au
Cited in 17 court opinionsMost recently applied by a court: 2024
Leading cases:
- [2023] NSWCA 35 (NSW Court of Appeal 2023, [2023] NSWCA 35)
- [2020] NSWCA 284 (NSW Court of Appeal 2020, [2020] NSWCA 284)
- [2022] NSWCA 146 (NSW Court of Appeal 2022, [2022] NSWCA 146)
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
Also relied on in: Who Repairs Common Property in a Strata Scheme in Australia
s 137BKeeping of animalsIn forcecited in 3 of our articles
(1) Each of the following has no force or effect to the extent that it would unreasonably prohibit the keeping of an animal on a lot—(a) a by-law, (b) a decision by an owners corporation under a by-law. (2) It is taken to be reasonable to keep an animal on a lot unless the keeping of the animal unreasonably interferes with another occupant’s use and enjoyment of the occupant’s lot or the common property. (3) The regulations may specify circumstances in which the keeping of an animal unreasonably interferes with another occupant’s use and enjoyment of the occupant’s lot or the common property. (4) A by-law that prohibits the keeping of an animal on a lot is not harsh, unconscionable or oppressive if it does not unreasonably prohibit the keeping of an animal on a lot.Note. Section 150(1) provides that the Tribunal may declare a by-law to be invalid if it is harsh, unconscionable or oppressive.
Official text (excerpt) · last checked 2026-08-14 · Read the full text in our law library · Verify at legislation.nsw.gov.au
Also relied on in: Strata, Owners Corporation and Body Corporate By-Laws in Australia
s 139ARestrictions on by-laws—assistance animalsIn forcecited in 3 of our articles
(1) A by-law has no force or effect to the extent it would—(a) prohibit or restrict the keeping on a lot of an assistance animal used by an owner or occupier of the lot, or (b) restrict, or impose an unreasonable burden on a person in relation to, the use of an assistance animal on a lot or common property. (2) A by-law may require a person who keeps an assistance animal on a lot to provide evidence to the owners corporation to show the animal is an assistance animal. (3) A person who keeps an assistance animal on a lot satisfies the evidentiary requirement of a by-law under subsection (2) if they provide any 1 of the following to the owners corporation—(a) evidence the animal holds an accreditation referred to in the Disability Discrimination Act 1992 of the Commonwealth, section 9(2)(a) or (b), or (b) a statutory declaration verifying the animal has received the training referred to in the Disability Discrimination Act 1992 of the Commonwealth, section 9(2)(c), or (c) any 1 form of evidence prescribed by the regulations.
Official text (excerpt) · last checked 2026-08-14 · Read the full text in our law library · Verify at legislation.nsw.gov.au
s 79Estimates to be prepared of contributions to administrative and capital works fundsIn forcecited in 3 of our articles
(1) An owners corporation must, not later than 14 days after the constitution of the owners corporation and at each annual general meeting after that, estimate how much money it will need to credit to its administrative fund for actual and expected expenditure—(a) to maintain in good condition on a day-to-day basis the common property and any personal property vested in the owners corporation, and (b) to provide for insurance premiums, and (c) to meet other recurrent expenses. Note. Recurrent expenses would include such regular expenses as insurance, water charges, electricity charges, carpet cleaning, lawn mowing services and the like and minor expenses relating to maintenance of the common property.
Official text (excerpt) · last checked 2026-08-14 · Read the full text in our law library · Verify at legislation.nsw.gov.au
Cited in 4 court opinionsMost recently applied by a court: 2024
Leading cases:
- Kimber v Clark in his capacity as trustee of the property of Kimber (Full Court of the Federal Court of Australia 2022, [2022] FCAFC 198)
- [2024] NSWDC 468 (District Court of New South Wales 2024, [2024] NSWDC 468)
- [2023] NSWDC 568 (District Court of New South Wales 2023, [2023] NSWDC 568)
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
Also relied on in: Strata, Owners Corporation and Body Corporate Levies in Australia
s 85Interest, discounts on contributions and payment plansIn forcecited in 2 of our articles
(1) A contribution, if not paid when it becomes due and payable, bears until paid simple interest at an annual rate of 10% or, if the regulations provide for another rate, that other rate. (2) Interest is not payable if the contribution is paid not later than one month after it becomes due and payable. (3) However, an owners corporation may by resolution determine (either generally or in a particular case) that a contribution is to bear no interest. (4) An owners corporation may, by resolution at a general meeting, determine (either generally or in a particular case) that a person may pay 10% less of a contribution levied if the person pays the contribution before the date on which it becomes due and payable. (5) An owners corporation and an owner may agree to enter into a payment plan for the payment of overdue contributions. (5A) A request by an owner to enter into a payment plan (the request) may be reasonably refused by the owners corporation. (5B) The regulations may prescribe what constitutes a reasonable refusal in relation to payment plans. (5AA) A payment plan is limited to a period of 12 months but a further plan may be agreed to.
Official text (excerpt) · last checked 2026-08-14 · Read the full text in our law library · Verify at legislation.nsw.gov.au
Cited in 6 court opinionsMost recently applied by a court: 2024
Leading cases:
- Renet v The Owner - Strata Plan SP22143 (Federal Court of Australia 2023, [2023] FCA 631)
- [2022] NSWSC 698 (Supreme Court of New South Wales 2022, [2022] NSWSC 698)
- [2024] NSWSC 358 (Supreme Court of New South Wales 2024, [2024] NSWSC 358)
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
s 86Recovery of unpaid contributions and interestIn forcecited in 2 of our articles
(1) The Tribunal may order the owner of a lot in the strata scheme, or other person, to pay a contribution that is payable by the owner or other person under this Act that is not paid at the end of 1 month after it becomes due and payable, together with any interest payable on that unpaid contribution and the reasonable expenses of the owners corporation incurred in recovering those amounts. (2) The Tribunal may make an order under subsection (1) only—(a) on the application of the owners corporation, and (b) if proceedings between the owners corporation and the owner of a lot in the strata scheme or other person are pending before the Tribunal. (2A) An owners corporation may, without obtaining an order under this section, recover as a debt in a court of competent jurisdiction, a contribution not paid at the end of 1 month after it becomes due and payable, together with any interest payable on that unpaid contribution and the reasonable expenses of the owners corporation incurred in recovering those amounts.Note.
Official text (excerpt) · last checked 2026-08-14 · Read the full text in our law library · Verify at legislation.nsw.gov.au
Cited in 9 court opinionsMost recently applied by a court: 2024
Leading cases:
- [2024] NSWCA 279 (NSW Court of Appeal 2024, [2024] NSWCA 279)
- [2022] NSWSC 1017 (Supreme Court of New South Wales 2022, [2022] NSWSC 1017)
- [2024] NSWSC 358 (Supreme Court of New South Wales 2024, [2024] NSWSC 358)
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
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Sources and References
- Strata Schemes Management Act 2015 (NSW)(classic.austlii.edu.au).gov
- Strata Schemes Legislation Amendment Act 2025 (NSW) No 14, as passed (assented to 2 March 2025)(legislation.nsw.gov.au).gov
- Strata Schemes Management Act 2015 (NSW) s 137B, keeping of animals(classic.austlii.edu.au).gov
- Strata Schemes Management Act 2015 (NSW) s 105A, bonds or fees relating to keeping of animals not payable(classic.austlii.edu.au).gov
- Strata Schemes Management Act 2015 (NSW) s 139A, restrictions on by-laws for assistance animals(classic.austlii.edu.au).gov
- Strata Schemes Management Act 2015 (NSW) s 106, duty to maintain and repair and the 6-year action limit at s 106(6)(classic.austlii.edu.au).gov
- Strata Schemes Management Act 2015 (NSW) s 85, payment plans for overdue contributions(classic.austlii.edu.au).gov
- Strata Schemes Management Act 2015 (NSW) s 86, recovery of unpaid contributions and interest(classic.austlii.edu.au).gov
- Strata Schemes Management Act 2015 (NSW) s 79, estimates for administrative and capital works funds(classic.austlii.edu.au).gov
- NSW Fair Trading: community living (strata and community schemes)(fairtrading.nsw.gov.au).gov