NSW strata law has entered a new phase of reform. As of 1 April 2026, the latest stage of changes under the Strata Schemes Legislation Amendment Act 2025 (NSW) is now in force — affecting all 87,000-plus strata schemes across the state. For facilities managers, strata committee members, and building owners, several of these changes have direct operational implications for how buildings are documented, maintained, and sold.
The reforms are not a single event but an ongoing multi-phase overhaul. The April 2026 tranche builds on changes that commenced in October 2025 — which introduced mandatory financial hardship statements in levy notices, new enforcement powers for NSW Fair Trading over owners corporations, and clarified definitions around who qualifies as a building manager. Critically, that October round also imposed new duties on building managers to act in the best interests of the owners corporation, disclose conflicts of interest, and respond promptly to maintenance and safety issues on common property.
What Changed on 1 April 2026
Three specific changes took effect from 1 April 2026 and are relevant to anyone involved in managing or transacting strata property in NSW:
Standardised Capital Works Fund Plans
All owners corporations are now required to use a new prescribed standard form when reviewing or replacing their 10-year capital works fund plan. This is the financial planning document that forecasts major expenditure on common property — including lifts, fire systems, electrical infrastructure, and yes, security and building management systems. The intent is to make these plans comparable across buildings and more transparent to prospective buyers. For buildings with ageing CCTV, access control, or intercom infrastructure, this reform sharpens the case for getting a realistic assessment of replacement timelines into the plan now rather than being caught short later.
Standardised Initial Maintenance Schedules for New Schemes
New strata schemes must now prepare their Initial Maintenance Schedule (IMS) using a prescribed standard form. For multi-storey apartment developments, an independent qualified surveyor must review and certify the IMS — and must also certify that initial levy estimates are realistic and based on actual projected expenses. This directly targets the practice of artificially low initial levies, which has historically left new owners corporations underfunded for early maintenance cycles. Facilities managers taking over new buildings should confirm that the IMS they receive reflects genuine maintenance obligations across all building systems.
Embedded Networks Now Disclosed in Strata Information Certificates
From 1 April 2026, the Section 184 Strata Information Certificate — the document buyers rely on during due diligence — must include details about any embedded networks on site. Embedded networks are privately owned utility distribution networks (electricity, gas, water) that serve multiple lots within a building. These networks have often been poorly disclosed historically. While this reform is primarily directed at utility supply arrangements, it is worth noting that building managers and facilities teams should understand what network infrastructure on their site may qualify as an embedded network, as disclosure obligations now apply at point of sale.
More Changes Coming Later in 2026
The April reforms are not the end of the process. Two further significant changes are expected in mid-to-late 2026:
- Mandatory training for strata committee members. All committee members will be required to complete prescribed training covering their duties, obligations, and legal responsibilities. Failure to complete the training will result in loss of committee membership. This is a meaningful governance change — committees making decisions about security upgrades, building system replacements, and contractor engagements will need to demonstrate they have met baseline competency requirements.
- Embedded network disclosure in off-the-plan contracts. The same embedded network disclosure requirement that now applies to Section 184 certificates will also be required in off-the-plan contracts for sale — giving buyers visibility over network arrangements before they commit to a purchase.
Operational Implications for Building and Facilities Managers
Taken together, these reforms push strata governance toward greater documentation rigour and financial realism. For anyone responsible for managing or advising on building systems in a strata context, several practical considerations follow:
- Capital works plans need accurate system lifespans. Security cameras, NVRs, access control panels, intercom systems, and network infrastructure all have finite operational lives. If your building’s capital works fund plan does not reflect realistic replacement cycles for these systems, the new standardised format creates both the expectation and the framework to correct that. Underfunded plans create pressure on committees to defer maintenance, which compounds risk.
- Building managers face higher accountability. The October 2025 reforms made it explicit that building managers must act promptly on safety and maintenance issues and disclose any commercial relationships when recommending service providers. Facilities managers and building managers operating in strata environments should review their engagement agreements and disclosure practices against these requirements.
- New schemes need realistic IMS documentation. If you are taking over facilities management of a newly registered strata scheme, verify that the IMS has been prepared on the new standard form and, for multi-storey developments, that it has been independently certified. A schedule that understates maintenance obligations creates downstream budget problems.
- Committee training obligations will require planning. When mandatory training requirements commence later in 2026, committees will need lead time to ensure all members complete the required course before the obligation takes effect. Building managers and strata managers should begin communicating this to committees now.
Mallen’s Take
The direction of these reforms is clear: NSW is moving toward a strata sector where financial planning is more transparent, documentation is standardised, and the people making decisions are held to a higher accountability standard. For security and building systems specifically, the capital works fund planning changes are the most immediately relevant. Buildings that carry ageing access control, CCTV, or intercom infrastructure without a credible replacement plan in the capital works fund are now more exposed — both in terms of compliance posture and in terms of what a prospective buyer’s due diligence will reveal.
If your strata scheme’s capital works plan does not yet account for electronic security and BMS infrastructure in a realistic way, now is a reasonable time to address that. A structured site audit can establish the condition and remaining useful life of installed systems, giving the owners corporation the data it needs to populate a credible plan under the new standardised format.
As always, the legal specifics of how these reforms apply to a particular scheme should be confirmed with qualified strata legal advice. The Coleman Greig summary this article draws on is a useful starting point, but scheme-specific circumstances matter.
Original source: https://www.mondaq.com/australia/real-estate/1768914/strata-reforms-in-nsw-2026-edition