Every owners corporation must hold an Annual General Meeting each financial year. The timing is set out in the Strata Schemes Management Act 2015 and is generally within one month before or after the end of the scheme’s financial year.

The AGM is where your budget and levies are set for the coming year, the capital works fund plan is reviewed, committee members are elected, and any owner motions are considered. Missing this window can create cash flow issues for the scheme, so it’s important to stay on schedule.

The notice periods depend on the type of meeting:

• General meeting (AGM or EGM): at least 7 days’ notice, or 14 days for schemes with more than 100 lots

• Committee meeting: at least 3 days’ notice

Public holidays that fall within the notice period must also be accounted for. Your scheme’s by-laws may specify longer notice periods.

A quorum is the minimum number of eligible voters needed for a meeting to validly transact business. For a general meeting, this is at least one quarter of eligible voters, present in person or by proxy.

If quorum isn’t reached, the meeting is typically adjourned for 30 minutes. After that period, the chairperson may proceed with those present, provided they are satisfied the motions can be dealt with appropriately.

An owner who cannot attend a meeting can appoint someone else to vote on their behalf by completing a proxy form.

There are limits on how many proxies one person can hold:

• Schemes of 20 lots or fewer: one proxy per person

• Schemes of more than 20 lots: no more than 5% of total lots

These limits were introduced to prevent any single owner or manager from controlling the outcome of a vote. A contract of sale also cannot require a buyer to hand over their proxy as a condition of purchase.

These are the three types of resolution used at general meetings, each with a different voting threshold:

• Ordinary resolution: a simple majority of votes cast

• Special resolution: at least 75% of votes in favour, with no more than 25% against

• Unanimous resolution: no votes against (abstentions don’t count)

In all cases, only financial owners present at the meeting (in person or by proxy) are counted.

The strata committee acts on behalf of the owners corporation between general meetings. The standard office-bearer roles are:

• Chairperson: chairs meetings and is often the primary point of contact for the strata manager

• Secretary: responsible for meeting notices, minutes, and general correspondence. If a strata manager is appointed, they typically handle these duties

• Treasurer: oversees the scheme’s finances, approves invoices, and keeps owners informed about the financial position

Committee members must act honestly and in good faith, and must disclose any personal interest in a matter being decided — for example, a family relationship with a contractor being considered.

Certain decisions cannot be made by the committee alone and must go to a general meeting of all owners. Mandatory training for strata committee members is expected to be introduced later in 2026 as part of the ongoing NSW reform program.

Levies are each owner’s share of the scheme’s running costs. At each AGM, the owners corporation estimates its expected income and expenses for the coming financial year and sets levy contributions accordingly.

Levies cover two separate funds:

• Administrative fund: day-to-day running costs such as insurance, strata management fees, cleaning, gardening, and minor repairs

• Capital works fund: money set aside for anticipated major expenses like roof replacement, repainting, lift upgrades, or waterproofing

Each owner’s share is calculated in proportion to their lot’s unit entitlement, unless the scheme has adopted a different contribution schedule.

Interest can be charged on overdue levies at a rate currently capped at 10% per annum, and the owners corporation can take legal action to recover unpaid amounts.

However, under recent reforms, the owners corporation must now offer the owner the opportunity to enter into a payment plan before pursuing interest or debt recovery costs. All levy notices must also include a Financial Hardship Information Statement explaining the owner’s rights and support options.

Prompt payment matters for the whole scheme — unpaid levies reduce the funds available for insurance, maintenance, and essential works, which affects every owner.

Owners corporations with total annual income above a prescribed threshold, or those that opt in by resolution, are required to have their accounts independently audited. The audited financial statements must be presented to owners, generally at the AGM.

Auditors will typically request access to bank statements, levy records, invoices, contracts, and meeting minutes. Keeping accurate, up-to-date records throughout the year — rather than scrambling at audit time — reduces both cost and delay.

Every owners corporation must maintain a capital works fund (previously called the sinking fund) and prepare a 10-year plan estimating major, non-recurring expenditure — items like roof replacement, repainting, lift upgrades, or waterproofing.

This plan is used to set the capital works levy component charged to each owner, ensuring the scheme is financially prepared for significant future expenses rather than relying on large special levies at short notice.

From 1 April 2026, these plans must be prepared using a new standard prescribed form, designed to improve consistency and make plans easier for owners and buyers to compare.

A Strata Information Certificate (commonly called a Section 184 certificate) is a formal document issued by the owners corporation or its strata manager that discloses key information about the scheme to a prospective buyer. It’s usually requested by a conveyancer or solicitor before exchange of contracts.

The certificate covers current levies, any levy arrears on the lot, insurance details, pending legal proceedings, known defects, and planned major works.

From 1 April 2026, the certificate must also disclose whether the scheme has an embedded network for services like electricity, hot water, or internet, and any active Fair Trading compliance orders relating to repairs and maintenance

A lot’s unit entitlement is the number allocated to it in the scheme’s registered strata plan. It represents your proportionate share of the scheme and determines three important things:

• Levy contributions: your share of administrative and capital works levies

• Voting weight: on a poll vote, your vote is weighted by unit entitlement

• Share of proceeds: if the scheme is ever collectively sold or wound up

Unit entitlements are set on a market value basis by a registered valuer (not a quantity surveyor, which is a common misconception) at the time the strata plan is registered.

If you believe your unit entitlement is incorrect, you can arrange an independent valuation and apply to NCAT for a reallocation under section 236 of the Act. This process requires professional valuation evidence and legal advice, as changes affect levy obligations and voting power across the entire scheme.

The general rule is that the owners corporation is responsible for common property, while owners are responsible for everything inside their own lot. However, the boundaries aren’t always obvious.

Common property generally includes external walls, structural elements, roofs, shared services (lifts, stairwells, driveways), and in many schemes, windows and balcony balustrades.

Owner’s responsibility generally includes internal fixtures, taps and toilet cisterns (as distinct from the pipes themselves), floor coverings, and internal painting.

Where the source of damage is unclear — for example, water ingress from an unknown source — the owners corporation is typically responsible for investigating, even if the repair cost is eventually apportioned differently.

Not all schemes are required to have one, but for those that do, the owners corporation must arrange for an accredited fire safety practitioner to inspect every essential fire safety measure in the building each year — fire doors, sprinkler systems, exit signage, fire extinguishers, and similar.

The resulting Annual Fire Safety Statement must be submitted to both council and NSW Fire and Rescue, and a copy must be displayed prominently in the building, usually near the fire indicator panel or main entrance.

Failure to comply can result in significant penalties. If fire safety issues are left unaddressed, council can issue fire orders requiring potentially extensive and expensive upgrades to bring the building into compliance.

Buildings constructed or renovated before 1990 (and some up to 2003) may contain asbestos-containing materials in items such as eaves, fencing, floor tiles, cladding, and pipe insulation.

Left undisturbed and in good condition, asbestos generally does not pose a health risk. The danger arises when fibres are released into the air through damage, drilling, cutting, or deterioration.

• Owners corporations should maintain an asbestos register identifying known or suspected asbestos in common property

• Any renovation work that may disturb common property should be assessed for asbestos risk before work begins

• Removal must be carried out by a licensed asbestos removalist in accordance with SafeWork NSW requirements

• If you suspect asbestos, do not drill, sand, cut, or disturb the material — engage a qualified assessor

Since March 2018, residential strata schemes must fit approved safety devices to windows above ground floor level where the window has a floor-to-opening height of less than 1.7 metres, an opening larger than 125mm, and is in a habitable room.

Devices must restrict the opening to a maximum of 125mm and withstand a horizontal force of 250 Newtons. Flyscreens and cosmetic locks do not meet the requirement — devices must comply with the relevant Australian Standard.

This obligation applies to both common property windows and individual lot windows in most cases. Devices must be installed by a suitably qualified person and maintained in working order.

Yes. Under the Swimming Pools Act 1992, strata schemes with a shared pool or spa must maintain a valid Certificate of Compliance. This certificate must be current at the time of sale or lease of any lot in the scheme, and is generally renewed every three years.

Pool barriers and fencing must meet the applicable Australian Standard for the pool’s construction date. Gates must be self-closing and self-latching. Non-compliance can delay property settlements and result in penalties.

By-laws are the rules governing how owners, tenants, and occupiers use their lot and the common property. Every scheme starts with a set of model by-laws, which the owners corporation can then amend, add to, or repeal by special resolution.

By-laws generally fall into two categories: those affecting behaviour and use (noise, pets, parking) and those creating rights over common property (exclusive use of a courtyard or storage cage), which require the affected owner’s written consent.

Registered by-laws bind current owners, tenants, occupiers, and future purchasers. Breaches are typically dealt with by a notice to comply, and can be escalated to NCAT, with penalties currently up to $1,100 for an initial breach.

A by-law that is harsh, unconscionable, or oppressive can be challenged and invalidated by NCAT.

In most cases, yes. Since the default model by-laws changed in 2017, NSW strata schemes can no longer impose a blanket ban on pets. Instead, an owner’s request must be considered on its merits, and consent can only be refused on reasonable grounds.

Reasonable conditions can be attached to approval — for example, requiring the pet be kept under control in common areas or that mess is cleaned up promptly.

A guide dog or other assistance animal cannot be refused — owners corporation consent is not required.

If a request is refused and the owner disagrees, they can seek mediation through NSW Fair Trading and, if unresolved, apply to NCAT.

NSW introduced specific rules for short-term letting in strata buildings from April 2020:

• A scheme cannot prohibit short-term letting of an owner’s principal place of residence, whether the host is present or not

• A scheme can restrict or prohibit short-term letting of a lot that is not the owner’s principal place of residence, but only by adopting a specific by-law via special resolution

• All hosts and guests must comply with the mandatory Short-Term Rental Accommodation Code of Conduct, which includes a strike-based exclusion register for repeat offenders

Fire safety, noise, and guest conduct obligations apply regardless of by-laws.

There is no automatic ban on smoking in strata, but smoke drift that causes a genuine nuisance to other residents can be addressed under the model by-laws, which require occupants not to create a nuisance or hazard.

A scheme can adopt a specific by-law by special resolution restricting or prohibiting smoking in defined areas such as balconies, common property, or within a set distance of doors and windows. However, a by-law generally cannot regulate what occurs entirely within the four walls of a private lot.

Where informal resolution doesn’t work, mediation through Fair Trading is the usual first step. Keeping records of dates, times, and impact helps substantiate a complaint if it needs to be escalated.

Car spaces in a strata scheme may be common property, part of a specific lot, or subject to an exclusive use by-law. The type of allocation determines responsibility and how disputes are resolved.

Visitor parking is common property and is governed by the scheme’s by-laws, typically with time limits and no use by residents’ own vehicles. Unauthorised parking on common property can be dealt with by the owners corporation, and in some circumstances a vehicle can be towed — though a clear, properly authorised process should be in place before doing so.

Bicycle, motorbike, and mobility scooter parking should also be addressed in by-laws to avoid ad hoc use of fire stairs or foyers, which can create safety issues.

It depends on the type of work. The Act creates three categories:

• Cosmetic work (picture hooks, painting internal walls, hanging blinds) — no approval needed, though you must comply with any reasonable requirements

• Minor renovations (kitchen renovation, replacing flooring, reconfiguring non-structural internal walls) — requires approval by committee resolution

• Major or structural renovations (work affecting waterproofing, structural elements, or external appearance) — requires a special resolution at a general meeting

Approval must always be obtained before work begins. Retrospective approval can be refused, and non-compliant works may need to be removed at the owner’s cost.

NSW has introduced two pathways to make this easier:

• Sustainability infrastructure resolution: EV charging can be approved by a resolution where less than 50% of votes are against, provided the scheme has a current capital works fund plan

• Right to Charge (from 13 February 2026): a lot owner can give written notice to the committee of their intention to install a charger. If the committee doesn’t respond with a reasonable written objection within three months, the installation is deemed approved

By-laws that attempt to unreasonably block EV charger installations outright are not enforceable under the current framework, though the committee can impose reasonable conditions around safety, standards, and cost allocation.

The owner is generally responsible for installation, maintenance, and any damage to common property. Schemes should plan ahead for shared electrical capacity, as retrofitting older switchboards can be a significant shared cost as more owners install chargers over time.

Two types of insurance are mandatory:

• Building damage policy: the owners corporation must insure the building for events including fire, lightning, water damage, fallen trees, broken glass, accidental damage, and structural damage. The policy must restore the building to “as new” condition and cover debris removal and professional fees

• Public liability: a minimum of $10 million cover per event, covering personal injury, death, or property damage occurring on common property

The sum insured must be based on the full replacement or rebuild cost, including professional fees. We recommend having the building revalued every three years to avoid underinsurance, which is one of the most common compliance gaps in strata schemes.

If a strata manager is arranging insurance, at least three quotes must be obtained. If fewer than three are available, the reasons must be provided in writing.

Disputes generally follow a structured pathway rather than going straight to court:

• Internal resolution: raise the issue directly with the strata committee or managing agent. Many issues can be resolved at this stage with clear communication

• Mediation: NSW Fair Trading offers mediation services, which are required for many dispute types before an application can be made to the tribunal. Mediation is generally faster and less expensive than a hearing

• NCAT: the NSW Civil and Administrative Tribunal hears strata disputes that can’t be resolved through mediation, covering matters from by-law breaches to orders about repairs, levies, and the appointment of a managing agent

Timeframes and costs vary by matter. Legal advice is recommended for complex or high-value disputes.

NSW has a specific consumer protection regime for new multi-storey strata buildings, given that standard home warranty insurance doesn’t cover buildings over three storeys.

Under the Strata Building Bond and Inspections Scheme, developers must lodge a building bond (currently 2% of the contract price) with NSW Fair Trading before an occupation certificate is issued. An independent inspector assesses the building for defects at set intervals, and bond funds can be used toward rectification.

This scheme runs alongside statutory warranty rights under the Home Building Act 1989, which give owners six years to claim for a major defect and two years for other defects from completion.

From 1 April 2026, developers of multi-storey schemes must also engage an independent surveyor to review the initial maintenance plan and first-year budget.

Many larger schemes engage a building manager or caretaker for day-to-day site management, separate from the strata managing agent.

These agreements should clearly define duties, hours, reporting lines, and termination rights. The Act places limits on maximum contract terms to prevent owners being locked into long-term arrangements without regular review.

Agreements involving a person connected to the original developer warrant particularly close scrutiny by the owners corporation once elected. Annual performance reviews are recommended to ensure the scheme is receiving value for the fees paid.

Yes, but it requires proper approval. Installing CCTV on common property is generally a decision for the owners corporation through the committee or a general meeting, depending on scope and cost. Individual owners cannot unilaterally install cameras on common property.

Cameras should capture common areas and entry points only — not the private areas of individual lots. Signage disclosing the use of CCTV is good practice, and footage should be stored securely with access limited to authorised persons.

Owners considering their own cameras (such as a doorbell camera) should check the scheme’s by-laws and ensure they don’t inadvertently capture neighbours’ private areas.

To ensure prompt payment, invoices submitted to the owners corporation should include:

• A valid ABN and GST breakdown (if registered)

• The correct scheme name and property address

• A clear description of works completed and the date

• A purchase order or approval reference number, where applicable

• Current banking details for remittance

Invoices without a matching purchase order or committee approval may be delayed pending verification. Contractors should also ensure current certificates of currency for public liability and workers compensation are on file.

Under the Work Health and Safety Act 2011, an owners corporation can be a “person conducting a business or undertaking” where it engages workers such as contractors, cleaners, or building managers. This means it owes a duty of care for their health and safety while on common property.

Common areas that should be actively risk-managed include lift wells, plant rooms, roof access points, car park ramps, and pool areas. SafeWork NSW can investigate incidents and issue penalties for non-compliance.