Mosman Blog

The Minister for Innovation and Better Regulation, Victor Dominello, last week revealed long-awaited plans for strata reform with the release of two exposure draft Bills for final consultation.

“By 2040, about half of Sydneysiders will be living in strata,” Mr Dominello said. “The proposed reforms are reflective of present needs and future demands.

“People can now have their final say on the drafting of more than 90 proposed changes to improve strata living including the perennial issues of parking, pets and passive smoking.”

Some of the proposed reforms include:

• Measures to prevent overcrowding: Allowing Owners’ Corporations to make a by-law limiting the number of people who can reside in a lot (but schemes must still allow no fewer than two adults per bedroom), so that strata schemes are able to better manage overcrowding.
• Collective sale: 75 per cent of apartment owners will be able to agree to sell their unit block for redevelopment, regardless of the wishes of the other 25 per cent.
• Parking control: More options for Owners’ Corporations to control unauthorised parking on common property, including the ability to enter into an agreement with the local council to manage unauthorised parking.
• Pet-friendly model by-laws: Amended model by-laws to make it easier to keep pets, as opposed to automatically prohibiting pet ownership in a scheme.
• Smoking: Strengthening current laws, specifically noting that smoke drift can be considered to be a nuisance or hazard.
• Proxy voting: Curbs on proxy farming by limiting proxy votes held by one person, ensuring all owners get a fair say in the way their scheme is run.
• Renovation approvals: Introduction of a three tier approvals plan for renovations, so that minor cosmetic changes don’t require permission but major alterations need “special resolution” approvals.
• Tenant participation: Allowing tenants in schemes where the majority of units are tenanted to take part in Owners’ Corporation meetings and have an elected representative on the strata committee, while respecting the financial decisions of owners.
• Enhanced disclosure: Requirements for strata managers to declare any commissions they may receive from insurers.

(The above is taken from the NSW Fair Trading website. Go to www.fairtrading.nsw.gov.au for full details of all proposed reforms.)

REINSW is currently conducting a comprehensive assessment of the reform package and will provide a written submission to the Government with feedback. REINSW is now in the process of preparing that submission.

“We acknowledge that strata reform is incredibly important and we will continue to work with the Government to ensure that the new strata laws best serve the profession, the industry and consumers,” he said.

The reforms are now two years behind schedule.

The draft Bills can be viewed at www.fairtrading.nsw.gov.au and will be open for feedback until 12 August 2015.