Sustainability Series: Part 6 – What is the new statutory restriction on by-laws for sustainability infrastructure works?

In this penultimate blog of this Sustainability Series I want to discuss the new restriction in relation to proposed works by-laws for the installation of sustainability infrastructure.

The change is the insertion of new section 139B into the Strata Schemes Management Act 2015 (“Management Act”) which took effect on 1 July 2025.

This section prevents an owners corporation from refusing to pass a by-law for sustainability infrastructure solely to preserve the existing appearance of a lot or the common property. This is in addition to the ability of a lot owner to seek orders in the Tribunal that a common property rights by-law was unreasonably refused, which imposes an obligation that a common property rights by-law not be unreasonably refused.

I stress the requirement that the refusal is “solely” for these reasons. Of course, this means that the by-law could be refused for other reasons if the refusal is reasonable. For instance, it may be that the work would negatively affect other lot owners due to its placement as it may mean that no other lot owner could install solar power as the proposed works would cover the available area. Energy equity reasons may then come into play if other lot owners wanted to use the roof space area for solar panels or if the owners corporation wished to do so for the common property energy. Structural adequacy of the building or adequacy of the existing electrical system could also be genuine, reasonable reasons to refuse a sustainability infrastructure by-law.

On reading the new provisions, solar panels came to mind. However, in part 4 of this series I discussed the broadness of sustainability infrastructure. Let’s not fall into the trap of thinking it is technology. What is a lot owner wanted to install an awning to provide shade so that they did not need to use their fans or air conditioning system? This would reduce their energy consumption fall into the definition of sustainability infrastructure and the aesthetic restriction would apply to the by-law motion.

What other potential works could this apply to? It could be installing EV charging stations, window tinting, placing batteries on balconies and in visible areas, installing compost facilities or new recycling bin structures or rain water tanks and storage systems.

Note that the new aesthetics restriction on by-laws does not apply if the building is heritage listed or if it is located in a heritage conservation area.

It is clear that the importance of making our strata and community schemes more sustainable has been a key consideration in legislative change. The focus has been to more easily facilitate the implantation of sustainability infrastructure however there is also a new statutory requirement for an owners corporation to consider the costs of sustainability. More on this in part 7 of this Sustainability Series.

Please seek legal advice that is tailored to your situation because as always, the devil is in the details and this is general information only.

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