Amendments to the Strata Schemes Management Act 2015

Enhanced Strata Committee Member Removal: Streamlined Process and 12-Month Ban:

Formerly, an owners corporation could dismiss a strata committee member through a special resolution at a general meeting.

The process is simplified, allowing removal by an ordinary resolution at a general meeting.

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Strata Committee Election Flexibility: Shifting from Fixed Terms to Mid-term Changes:

With this amendment, a shift occurred: members can now be elected not only during the traditional annual general meetings but also at other general meetings specifically convened for this purpose.

It easier to replace committee members mid-term, thus departing from the traditional structure.

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Compulsory Electronic Record Keeping: New Obligations for Owners Corporations:

Initially, the Act did not require owners corporations to maintain electronic records.

Presently, the Act mandates owners corporations to keep electronic records for all records generated from 11 June 2024 onward, while still allowing the option of maintaining hard copies.

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Empowered Voting: Clarification on Power of Attorney at General Meetings:

Initially, the Act did not acknowledge the standalone use of a power of attorney for exercising voting rights on behalf of a lot owner, with supporting caselaw suggesting this was not permitted.

he recent amendment permits a person acting under a power of attorney to exercise a lot owner's voting rights at a general meeting.

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Extended AGM Notice Period: Doubling the Notification Time:

Previously, owners corporations had to give lot owners a minimum of 7 days' notice for any general meeting.

Currently, the notice period for annual general meetings has been extended to 14 days, effectively doubling the previous requirement. However, the 7-day notice period remains applicable for general meetings that are not annual general meetings.

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Clear Prohibition: Owners Corporations Barred from Animal-Related Bonds and Fees:

Formerly, recent amendments had nearly eliminated an owners corporation's ability to restrict occupants from keeping animals, but the Act did not address whether a bond or fee could be imposed for this purpose.

Currently, the Act explicitly forbids owners corporations from demanding a bond or fee for keeping an animal, and it also prohibits the requirement of insurance for the same.

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Mandatory Two Quotes for Expenditures: Applicability Across All Scheme Sizes:

Previously, owners corporations with more than 100 lots were mandated to acquire at least 2 quotes for expenditures exceeding $30,000.

Presently, this requirement applies to owners corporations of all sizes, except in cases of emergency expenditures where the rule is exempted.

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Reduced Levy Notice Periods: Balancing Urgency and Financial Impact:

Previously, a 30-day notice was mandatory before a levy contribution could be deemed due and payable.

Currently, the notice period can be shortened to 14 days if the levy is imposed for "emergency repairs," defined as mitigating serious threats to health or safety.

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Expansion of Compulsory Appointment Applicants: Secretary of Fair Trading Inclusion:

The Act initially specified a restricted group eligible to apply for the compulsory appointment of a strata managing agent through the NSW Civil and Administrative Tribunal.

An upcoming but not yet enacted amendment will, for the first time, add the Secretary of Fair Trading to the list of individuals authorized to make such applications.

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