Changes to NSW strata laws delayed after stakeholders demand more time
Radical changes proposed to strata schemes in NSW have been delayed by at least six months after stakeholders demanded the state government take more time to get new legislation right.
NSW Fair Trading released a position paper on strata title law reform in November 2013. A final bill was expected to be introduced to Parliament in early 2014 but that has been extended until August following a recent meeting between NSW Minister for Fair Trading Stuart Ayres and key stakeholders.
“There was concern among the stakeholders that the most significant social reforms in strata since 1961 could be placed in jeopardy by legislation that was prepared as part of an unrealistic timeframe,” Owners Corporation Network chair Stephen Goddard told Property Observer.
More than 70 reforms have been put forward. Goddard said four separate pieces of legislation would need to be amended to enact the planned reforms and each fell into a different area of state government.
“The policy changes that are coming into play are therefore in need of a whole of government solution, not just one ministry,” he said.
One of the reforms’ aims is to ensure defects in new strata buildings are identified and fixed sooner.
Goddard said around 85% of new strata residential buildings have defects, with owners’ corporations often having to fight for problems to be rectified.
The proposed reforms will also provide a way to terminate strata plans to make it easier to redevelop existing strata buildings.
They aim to facilitate decision making and dispute resolution in strata communities; protect individuals from unfair practices; and improve transparency and accountability in strata management, the use of proxies and disclosing potential conflicts of interest. The proposed changes are also intended to reduce red tape.
“This legislation will be ground-breaking. It will roll out into all the other jurisdictions I’m confident about that because the issues recur in Victoria, Queensland and Western Australia,” Goddard said.
Former NSW Fair Trading minister Anthony Roberts started an extensive consultation process on the reforms in September 2012, leading up to the release of the position paper in November 2013. The consultation received submissions from more than 70 organisations including the Housing Industry Association, the Master Builders Association, the Property Council of Australia, the Real Estate Institute of NSW, Owners Corporation Network and local councils, as well as from hundreds of individuals.
Ayres took over from Roberts as NSW Fair Trading Minister on December 9, 2013 and has continued with the reforms. A spokeswoman for the Minister confirmed the timetable had been delayed until August.
“It’s really significant legislative reform and we did not want to rush it,” the spokeswoman said.
Industry sources suggested legislative changes could be pushed out again to October.
There are more than 72,000 strata schemes in NSW with $350 billion in assets.
One in four Australians now live in strata accommodation and according to government 20 years, half of the NSW population is expected to be living or working in a strata or community scheme.