The NSW Government is currently reviewing the STRA regulations in response to rising rents and housing shortages. While no concrete legislative changes have been enacted for 2025 as of this date, the following key areas are under serious consideration:

What’s Changing in 2025? (Proposed Changes Under Review)

1. Potential Reduction of the 180-Night Cap

1. • A key area of review is the statutory 180-night annual limitation for non-hosted STRA within Greater Sydney. A reduction in this cap, potentially to 90 nights per annum, is being seriously contemplated.
   • Proposals for even more restrictive limits, such as a 60-night cap as advocated by certain local councils (e.g., Byron Bay), may influence broader legislative changes or empower further local council action.

2. Tougher Enforcement and Penalties

1. • The government is considering the implementation of more stringent enforcement mechanisms and increased financial penalties for non-compliance with STRA regulations. This includes, but is not limited to, failure to register, exceeding permissible nightly limits, and breaches of fire safety standards.
   • An increase in proactive compliance audits is also anticipated, potentially increasing the risk for unregistered or non-compliant STRA operations.

3. Enhanced Local Council Regulatory Powers

• • A potential outcome of the current review is the conferral of greater discretionary authority upon local councils to determine and enforce STRA limitations within their respective local government areas.

1. • This could result in significant variations in STRA regulations across different regions, potentially ranging from outright prohibitions in specific zones to more permissive frameworks in others.

4. Consideration of New Levies on STRA Properties

1. • The introduction of a new levy or tax specifically targeting STRA properties is under active consideration by policymakers. This approach mirrors recent developments in other jurisdictions, such as Brisbane’s implementation of differential council rating for STRA properties.
   • The primary policy objective of such a measure is to incentivise the return of properties to the long-term residential rental market.

Implications for Strata Schemes and Lot Owners

The proposed amendments to STRA legislation carry significant implications for strata schemes and individual lot owners:

• Potential Impact on Investment Returns: Stricter nightly caps, particularly for non-hosted STRA, may directly reduce the revenue-generating potential of affected properties.
• Increased Compliance Burdens: More rigorous enforcement and potentially enhanced safety requirements could lead to increased operational costs for STRA hosts.
• Regulatory Uncertainty: The prospect of divergent STRA regulations across different local council areas may introduce complexity and uncertainty for owners with properties in multiple locations.
• Diminished Profitability: The imposition of new taxes or levies would directly impact the financial viability of STRA ventures.
• Differential Impact on Hosted STRA: Properties operating under a hosted model are likely to be less directly affected by the anticipated changes primarily targeting non-hosted arrangements.

Recommendations for Strata Schemes and Lot Owners

Given the dynamic nature of STRA regulations in NSW, it is imperative for owners corporations and lot owners to:

• Remain Vigilant: Continuously monitor official announcements and legislative updates issued by the NSW Government regarding STRA.
• Assess Investment Strategies: Evaluate the potential impact of the proposed amendments on existing and prospective STRA investments.
• Ensure Full Regulatory Compliance: Conduct thorough audits to verify adherence to current registration requirements, fire safety standards, and any applicable local council regulations.
• Engage with Legal Counsel: Seek expert legal advice from strata law specialists to understand the implications of the evolving legal landscape and to ensure ongoing compliance.
• Consider By-law Amendments: Owners corporations may need to review and potentially amend their strata by-laws in response to legislative changes or local council policies.

The anticipated amendments to NSW STRA legislation in 2025 signify a potentially significant shift in the regulatory environment. Proactive engagement with legal counsel and a commitment to staying informed are crucial for navigating these changes effectively and safeguarding the interests of strata communities and individual lot owners.

Easter 2025 and STRA Peak Period: Don’t Let Outdated STRA By-Laws Catch You Out.

Is your strata community prepared for the Easter short-term rental surge? Outdated by-laws can lead to disputes and compliance issues.

IS YOUR STRA BY-LAW UP TO DATE – DO YOU NEED A REVIEW?

Adrian Mueller I BCOM LLB FACCAL I Partner

Since 2002 Adrian has specialised almost exclusively in the area of strata law. His knowledge of, and experience in strata law is second to none. He is the youngest person to have been admitted as a Fellow of the ACSL, the peak body for strata lawyers in Australia. Profile I Linked

Contact Us

For all strata law advice including by-laws, building defects and levy collections contact our specialist NSW and Sydney strata lawyers here or call 02 9562 1266, we’re happy to assist.

The Strata Hub is getting a major upgrade this December, with a raft of new features designed to streamline workflow and improve efficiency for strata managers and owners.

What Can You Expect from the Strata Hub Updates?

The new key features include:

• Transfer feature: This handy new tool will streamline the process of transferring strata records to a new managing agent.
• Vacant positions: Keep track of strata committee vacancies with the new vacant positions feature.
• Library of key resources: Strata Hub will now house a comprehensive library of essential resources, all in one place.
• Public strata search: Find the information quickly and easily with the new public strata search function.
• Streamlined scheme reporting: This allows strata managers to pull accurate and up-to-date data and reporting directly for schemes managed.
• Data validation: Ensure the accuracy of strata data with the new data validation tools.

These new features have been designed to make Strata Hub a more efficient, effective, and valuable resource for strata managers and owners.

Further details and training resources will be available in the coming weeks.

For more information visit NSW Government Strata Hub

Adrian Mueller I BCOM LLB FACCAL I Partner

Since 2002 Adrian has specialised almost exclusively in the area of strata law. His knowledge of, and experience in strata law is second to none. He is the youngest person to have been admitted as a Fellow of the ACSL, the peak body for strata lawyers in Australia. Profile I Linked

Contact Us

For all strata law advice including by-laws, building defects and levy collections contact our specialist NSW and Sydney strata lawyers here or call 02 9562 1266, we’re happy to assist.

The NSW Government has released a new guide to help strata property owners better understand the ins and outs of strata living.

The Strata Living Guide covers a range of essential topics, including by-laws, financial obligations, renovations, and dispute resolution.

Strata managers it is important that you share a copy of the Strata Living Guide to new and existing owners to help them better understand how strata living works.

The guide aims to empower strata owners by providing them with the knowledge and tools they need to effectively manage their properties and resolve common issues.

It also offers practical advice on how to navigate the complexities of strata living, such as understanding their rights and responsibilities, attending meetings, and making informed decisions.

Key topics covered in the guide include:

• The basics of strata
• Common property and individual ownership
• Key roles and responsibilities within a strata scheme
• Financial obligations and levies
• By-laws and rules governing strata schemes
• Meetings and decision-making processes
• Repairs and maintenance of common property
• Renovating your property
• Resolving disputes and conflicts

The NSW Government is committed to improving the regulatory framework for strata living and ensuring that all strata owners have access to the information they need to make informed decisions.

The Strata Living Guide is a valuable resource for anyone who owns or is considering purchasing a strata-titled property in NSW.

You can download the full guide here: NSW Strata Living Guide 

Adrian Mueller I BCOM LLB FACCAL I Partner

Since 2002 Adrian has specialised almost exclusively in the area of strata law. His knowledge of, and experience in strata law is second to none. He is the youngest person to have been admitted as a Fellow of the ACSL, the peak body for strata lawyers in Australia. Profile I Linked

Contact Us

For all strata law advice including by-laws, building defects and levy collections contact our specialist NSW and Sydney strata lawyers here or call 02 9562 1266, we’re happy to assist.

As of 1 July 2024, NSW (and ACT) became the first state in Australia to adopt new and modern defamation laws for the digital age.

Led by the NSW Government the changes in the Defamation Amendment Act 2023 (NSW) will improve the balance between freedom of speech and protection of reputation when someone publishes content through a digital intermediary.

Examples of digital intermediaries include:

• Social Media Platforms
• Review Websites
• Search Engines
• Content Hosts
• Service Providers
• Individuals and organisations who use online platforms to host forums inviting third-party comments (known as forum administrators).

Part A reforms include:

• two conditional statutory exemptions from defamation liability for a narrow group of digital intermediaries, including search engines in relation to organic search results (non-sponsored search results)
• a new innocent dissemination defence for digital intermediaries, subject to a simple complaints process
• empowering courts to order digital intermediaries to prevent access to defamatory content online, even when they are not parties to defamation proceedings
• requiring courts to consider safety, privacy and the public interest when making orders against digital intermediaries to provide the identity or contact details of a poster of online content

To read the full bill and other information including Stage 2 visit NSW Government.

Adrian Mueller I BCOM LLB FACCAL I Partner

Since 2002 Adrian has specialised almost exclusively in the area of strata law. His knowledge of, and experience in strata law is second to none. He is the youngest person to have been admitted as a Fellow of the ACSL, the peak body for strata lawyers in Australia. Profile I Linked

Contact Us

For all strata law advice including by-laws, building defects and levy collections contact our specialist NSW and Sydney strata lawyers here or call 02 9562 1266, we’re happy to assist