New Mandatory Reporting Requirements for Strata Schemes in NSW
Update: The NSW government has changed the first due date for these reporting requirements to be from 30 June 2022. This means that if you have held your first annual general meeting prior to 30 June 2022, you must comply with the new regulation by 30 September 2022.
Strata schemes in New South Wales will be required to lodge an annual return with the Department of Fair Trading from 1 May 2022. Failure to do so may give rise to a fine for the owners corporation.
What is the requirement?
An amendment has been made to the Strata Schemes Management Act 2015, which requires strata schemes to file a return within three months of each Annual General Meeting (“AGM”) and to pay an administration fee of $3 per lot.
The information to be provided includes:
- Strata plan number, registration date, address and number of lots;
- The date of the most recent AGM;
- If an Annual Fire Safety Statement has been issued and the issue date;
- Contact details of the owners corporation secretary, chairperson, strata managing agent, building manager and strata scheme emergency contact; and
- Details of the strata renewal committee.
How will it work?
Whilst the process will become clearer over the coming months, we do know that the NSW Government will require the data to be submitted through its new “Strata Hub”, which it says will be active from May 2022.
The Strata Hub is intended to be a centralised portal where all the information regarding residential strata buildings can be accessed by buyers and owners. Information provided by strata schemes as part of the annual return will feed into the data provided on the portal.
What does the Strata Hub mean for you?
Firstly, all owners corporations should keep an eye out for further clarification as to what each strata scheme will be required to do once reporting is required from May 2022.
Secondly, owners corporations should be aware that parts of the information that they provide to Fair Trading may be made publicly available through Strata Hub and/or shared with various Government Departments in due course. The depth of information that is publicly available on Strata Hub will be clearer once it is live in May 2022, but owners should more broadly note that the Government appears to be gathering as much data as it can about strata schemes as they grow across New South Wales.
Thirdly, it is likely that the introduction of the Strata Hub is another example of the Government looking to digitalise both the construction industry and Government services. Expect more online programs such as Strata Hub to become part of everyday life – much like digital wallets and the Medicare App.
Lastly, don’t expect that Strata Hub will replace or streamline traditional buyer due diligence (at least for now). The Government has stated that prospective purchasers will need to undertake the typical due diligence before buying into any strata scheme.
If you have any questions or concerns about this article or require assistance with understanding your strata rights, please do not hesitate to contact Marcus Carbone on 9523 5535. We are here to assist you with all your strata enquiries.
For more information:
Section 43A of the Strata Schemes Management Regulation 2016
You can read our blog: Mandatory Annual Reporting for NSW Strata Schemes
If you would like to understand your obligations in relation to a Two Lot Strata Scheme
Disclaimer: The information contained in this article is provided as general information only. It is not intended to be legal advice and it should not be used or relied on as legal or professional advice.