NSW strata reform bill needs urgent fixes to protect homeowners

Financial Counselling Australia (FCA) welcomes the introduction of the Strata Schemes Amendment Bill 2024 to NSW State Parliament today. We see it as a positive step forward in addressing financial hardship faced by strata property owners.

However, the Bill does not go far enough to safeguard homeowners from unnecessary legal action and the risk of losing their homes.

While the Bill introduces key measures—such as improved hardship notifications, protections for owners on payment plans, and longer response times for arrears—it leaves critical gaps:

• No obligation for strata schemes to issue levy notices, leaving owners unaware of arrears.
• No requirements for offering payment plans, leaving many in hardship unsupported.
• No protection for owners facing legal action during unresolved disputes.
• No criteria for refusing payment plan requests, allowing for potentially unfair decisions.

“In NSW, strata-led bankruptcies account for 16% of all forced bankruptcy proceedings—far above the national average. Without stronger safeguards, this trend will continue to devastate families,” says Lody Stewart, Advocacy Lead with FCA.

“We’re concerned the Bill does not prioritise consumers and as a result, homeowners are left without the comprehensive protections they need.”

FCA urges the Minister and Parliament to address these gaps before the Bill is passed. NSW homeowners deserve fairer and more robust protections.

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