Posted: 2024-11-21 20:04:49

The NSW government has introduced a new tranche of strata reforms to parliament, which it says sets a "high-water mark" for strata living in the state.

However, one significant part of the bill received scant attention during Fair Trading Minister Anoulack Chanthivong's speech to parliament on Wednesday.

Under the proposed changes, NSW Fair Trading is seeking new powers to enter any apartment building in the state without a warrant, if there are reasonable grounds to believe an owners corporation is not fixing common property.

Dressed in a suit and tie, Anoulack Chanthivong addresses a media conference.

Anoulack Chanthivong introduced the bill to state parliament on Wednesday. (AAP: Dan Himbrechts)

Individual apartments could also be entered, with a warrant or consent, and unit owners would be compelled to hand over documents, consent to an interview and have items seized from their home or face a $2,200 fine.

In a statement, a NSW Fair Trading spokesperson said: "The new investigatory powers are only for the purpose of investigating and enforcing the owner's corporation duty to maintain and repair common property."

An owners corporation, previously known as a body corporate, is the collective term for the owners of individual lots within a strata scheme.

'The government in my bedroom is not what we want'

Previously, the regulator had only been granted powers of entry in new apartment builds to force developers to fix building defects.

These powers will now be expanded to cover all existing buildings and be used to force owners corporations to comply with their obligations.

NSW Fair Trading said the proposed changes had been subject to "broad public consultation" and were recommended in a 2021 statutory review of the legislation.

However, Owners Corporation Network (OCN) chief executive Shari Driver, who is part of a key advocacy group representing apartment owners, said OCN did not request the change.

Apartment buildings from a distance.

The new powers will now expand to cover all existing buildings. (ABC News: Keana Naughton)

Ms Driver said she feared there would be unintended privacy implications.

"The government in my bedroom is not what we want," Ms Driver said.

"They are looking at their powers going much further than the front doors … into their personal space."

Ms Driver said the new powers modelled those given to the NSW building commissioner, but now targeted individual apartment owners, not developers and their associated companies.

Failure to comply with laws could result in hefty fines

Amanda Farmer smiles.

The bill seeks to expand the existing powers of entry to cover all apartment buildings. (Supplied: Amanda Farmer)

Strata lawyer Amanda Farmer said it was an "extraordinary intervention" into private property, but she believed it was necessary.

Ms Farmer, who is a council member of the Australian College of Strata Lawyers, said many of her clients live in wet, mouldy homes because their buildings refuse to meet their obligations.

She said their only option was to spend thousands of dollars on legal action, but now that would change.

"For the first time, the government can intervene in older, established strata buildings, without the due process of a court hearing, on the suspicion the building has breached its legal obligation to properly repair and maintain its property," she said.

Under the bill, the 'secretary', which is the NSW Fair Trading Commissioner Natasha Mann, or her delegate, could also "open up, cut open or demolish building work" and use "reasonable force to break open … a floor or wall" during an inspection.

The regulator would also have the power to issue compliance notices, apply to the NSW Civil and Administrative Tribunal for an order, or strike an enforceable undertaking to compel action.

If the owners corporation still refused to repair common property it would become an offence, with a maximum penalty $22,000, and further penalties accruing each day.

"It's a problem that needs to be solved and I'm sorry if this is the way but I find it hard to see the downside," Ms Farmer said.

Alisha Fisher, the CEO of peak body Strata Community Association, said while privacy concerns were understandable, the provisions would "effectively address critical maintenance and repair issues, ensuring the safety and functionality of common property".

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