
This is part four of a six part series discussing the strata and community title updates in 2025. This post discusses the new definition of a building manager and a facilities manager and the new duties imposed on them.
These changes will be brought about by the Strata Schemes Legislation Amendment Act 2025 when it takes effect. Some minor changes have taken effect but the changes discussed below have not yet done so. It is expected that the changes will come into effect from mid 2025.
There is a new definition that provides a significant carve out from who is considered a building or facilities manager. Under the changes, where a person exercises the functions of a building manager (or in the case of an association a facilities manager) on a voluntary or casual basis only or as a member of a committee or if they belong to a yet to be prescribed class of people, they are not a building / facilities manager: s66(2) SSMA & s70(2) CLMA.
This changes are key as there is a substantial new duty is imposed on building and facilities managers. Building and facilities managers must not, without reasonable excuse, fail to act in the best interests of the scheme or breach a duty prescribed by the regulations (which are not yet known): s 70A SSMA & s 74A CLMA. However, they are not required to do so if such act would be contrary to the Act or regulations or otherwise unlawful.
Additional duties may be prescribed by the regulations with potential penalties being 100 penalty units for individuals and 200 otherwise.
Although references are made throughout to changes to the SSMA, these changes also affect the Community Land Management Act 2021 (NSW) (“CLMA”).
This is general information and is not to be considered as legal advice. Please seek advice tailored to your situation.