The Fair Trading and Building Legislation Amendment Bill 2026 was passed by parliament during February 2026 with the changes effective on 1 April 2026.
This forms part of a broader regulatory overhaul aimed at strengthening consumer protection, tightening compliance standards and improving accountability across building and real estate industries. The objective is to reduce regulatory gaps and align oversight across the full property lifecycle, from design and certification through to sale, conveyancing and tenancy management. For property developers, builders, agents and investors, the reforms signal a continued emphasis on compliance, documentation standards and professional accountability.[1]
Summary of changes to the Strata Schemes Management Act 2015
Enforcement in 2‑lot strata schemes
- Two lot strata schemes will now be able to apply to the tribunal for a penalty where one owner has failed to comply with a by-law.
Section 211AA Definitions
- The following definitions have been added or amended: building element, building product, decennial insurance, DLI policy, relevant defect, and vertical Transportation product.
- The change to the definition of relevant defect seeks to remove the reliance on serious defects as defined in the RAB Act. This change aims to achieve alignment of this new definition with the intended purpose of decennial liability insurance, being to provide cover for non-compliance related defects which result in damage, serious injury or risk of death. This amendment is aimed at getting decennial liability insurance operational.
Mandatory forms
- New and reviewed 10 year capital works plans must use the standard form provided by the NSW Government. You can access the link here 10 year capital works fund plan — Strata | NSW Government. There is also a 10-year capital works fund planner available to use. Be aware that a two lot strata scheme may not need a capital works fund if the lots are physically detached, no buildings or parts of the building are located outside the two lots eg on common property, and the owners corporation passes a unanimous vote that a capital works fund is not required.
- Owners corporations that have an existing 10 year capital works plan in place do not need to change those plans to the standard form. However, if an existing plan is reviewed or prepared, the new form must be used.
- The initial owner/developer must prepare an initial maintenance schedule and provide this to the owners corporation at least 14 days before the first AGM. For initial maintenance schedules after 1 April, the prescribed standardised form must be used. Access the form here Initial maintenance schedule — Strata | NSW Government. For new multi-storey schemes (which includes apartment blocks) using such initial maintenance schedule and initial levy estimates must be reviewed and certified by an independent surveyor. The surveyor must certify that this and the initial estimate on levies meet the expected expenditure for the year following the first AGM. These documents together with proof of independence of such surveyor must be presented to the owners corporation at least 14 days before the first AGM. Penalties will apply if the initial owner/developer does not adhere.
Preparing Information Certificates commonly known as Section 184 Certificates
- Section 184 Certificates provide information about a lot, including financial details. These are often requested when such a lot is to be sold. Such certificates will need to include information about exclusive supply networks (commonly referred to as embedded networks) and the nature of the service provided by these networks. This includes the supply of electricity, gas, hot and cold water, internet access, or other utilities. No form for this is available as yet but a link will be provided for such a form by the NSW Government before 1 April 2026.
- Changes with respect to mandatory training for strata committee members and exclusive supply networks for off-the-plan contracts for sale are not yet finalised but are expected to come into legislation during 2026.
Other relevant legislation
Building and Construction Industry Security of Payment Act 1999 (NSW)
- The definition of business has been replaced with working day.
Building and Development Certifiers Act 2018 No 63
- Disciplinary action will be allowed to be taken against a person no longer registered as a certifier.
Design and Building Practitioners Act 2020
- The NSW Government has been authorised to create regulations that exempt specific persons or types of building work from this Act’s requirements.
Home Building Act 1989 No 147
- Introduces new powers for the Secretary to vary, suspend or cancel an authority if the holder of an authority is not qualified to hold such an authority.
(No change to the definition of authority but for reference in reading this change, “authority” means the following:
(a) a contractor licence (whether or not an endorsed contractor licence),
(b) a supervisor or tradesperson certificate,
(c) an owner-builder permit.
- Establishes the Building Administration Fund (Fund) in the Special Deposits Account and sets out the amounts which must or may be paid into the which is to be managed and controlled by the Secretary.
Residential Apartment Buildings Compliance and Enforcement Powers) Act 2020 (RAB Act)
- Introduces a definition of building legislation:
“building legislation means this Act and the following Acts, including instruments made under the Acts:
the Building and Construction Industry Security of Payment Act 1999,
the Building and Development Certifiers Act 2018,
the Building Products (Safety) Act 2017,
the Design and Building Practitioners Act 2020,
the Gas and Electricity (Consumer Safety) Act 2017
the Home Building Act 1989,
the Plumbing and Drainage Act 2011,
the Strata Schemes Management Act 2015,
the Swimming Pools Act 1992.
- The definition of relevant agency has been amended to include the Australian Prudential Regulation Authority, the Australian Securities and Investments Commission, the Australian Taxation Office.
- This definition is used to provide that information exchanged pursuant to the provisions of the Act apply to information reasonably necessary for the purposes of enabling or assisting a relevant agency to regulate or take action under building legislation as defined, or investigating offences against laws of the Sate, Commonwealth or any State or Territory.
If you need assistance with these changes and how to implement them in your strata scheme, Swaab’s specialist strata law team can
[1] https://www.parliament.nsw.gov.au/bill/files/18857/XN_Fair%20Trading%20and%20Building%20Legislation%20Amendment%20Bill.pdf
Guide to strata law changes for strata committees and owners | NSW Government