SYDNEY — Skipping the annual general meeting is no longer just bad governance for a NSW owners corporation. Since 23 October 2026, an owners corporation can be penalised for not holding its AGM, one of a set of new and increased penalties that came with the latest strata reforms.
The changes are in the Strata Schemes Legislation Amendment (Miscellaneous) Act 2026, which received assent on 23 October. NSW Fair Trading says they are meant to make sure “owners corporations, developers and strata managers are held accountable.”
Penalties
Fair Trading’s guide to strata law changes describes the 23 October package as introducing new penalties and increasing existing ones for non-compliance. The AGM penalty is the example it highlights. The guide does not list every new penalty amount. Committees should check the amended legislation or ask Fair Trading before assuming a figure.
The penalties build on earlier changes. Since 1 July 2025, developers have faced penalties of up to $11,000, plus $220 a day, for not holding the first AGM on time or not giving owners required documents 14 days before it. Since 27 October 2025, Fair Trading has had power to investigate and enforce owners corporations’ duty to repair and maintain common property.
Commission disclosure
The second part of the package concerns strata managing agents. The law now clarifies what an agent must report at each AGM about training services and commissions. The report must include details of each commission or training service and who provided it, or will provide it. Fair Trading has a new power to prescribe a standard form for these reports. That form “is not yet prescribed”, the guide says.
Commissions, especially on building insurance, have been a sore point for years. Since February 2025, strata managers in NSW have had to give itemised insurance quotes that show commission and broker fees, and they cannot take a commission on insurance the owners corporation arranged itself. The Institution of Surveyors NSW also reports that the Tribunal will be able to end building management agreements where managers breach their duties, including by failing to disclose commissions.
What it means for owners and committees
Committees: put the AGM date in the calendar now and work backwards from the notice period. If your scheme has drifted, for example because nobody wants to be on the committee or because a manager’s contract lapsed, this is the time to fix it. Ask your strata manager in writing what their AGM report will say about commissions and training, and who paid them.
Owners: read the commission section of the AGM papers. If insurance commissions are being paid, ask how much, to whom, and whether the committee considered placing insurance without them. If your scheme hasn’t held an AGM, raise it with the committee first, then with NSW Fair Trading.
For more on insurance costs and what drives them, see our unit owners’ insurance guide. It is written for US condo owners, but the questions to ask about cover and deductibles apply in strata too.
Related on HOA Strata News
- NSW Strata Reforms Become Law: What Changed on 23 October and What Comes in 2027
- NSW Strata Levy Payment Plans Can Now Include Current Levies and Interest
- How to Read a Strata Report Before Buying in NSW
Sources: NSW Government guide to strata law changes, updated 26 October 2026; NSW Legislation; Institution of Surveyors NSW, 27 October 2026. General information only, not legal advice.
