Debate resumed from an earlier hour.
Mr ANOULACK CHANTHIVONG (Macquarie Fields—Minister for Better Regulation and Fair Trading, Minister for Industry and Trade, Minister for Innovation, Science and Technology, Minister for Building, and Minister for Corrections) (12:34): In reply: I thank members for their contributions to debate on the Strata Schemes Legislation Amendment Bill 2024, particularly the shadow Minister and member for Willoughby, and also the members for the electorates of Campbelltown, Sydney, Parramatta, Ryde, Liverpool, Newtown, Heathcote, Coogee, Drummoyne, East Hills, Mount Druitt, Charlestown, Riverstone, North Sydney, Granville, Gosford, Bankstown and Blacktown. I thank members for their support of this very important bill. The bill introduces the most significant reforms to strata living and strata laws since 2015, which will be of benefit to people living in strata schemes. The bill is part of the Government's extensive reform agenda for the strata sector. It will improve the lives of residents in strata and community land schemes and provide confidence to invest in strata buildings as the Government moves to increase housing supply.
I will now respond briefly to points made by members. I note the comments of the shadow Minister and member for Willoughby about the implementation of the remaining recommendations. In all fairness, it is a bit laughable to suggest that the Government has sat on its hands when it comes to modernising strata laws. In less than two years this Government has progressed several important reforms to restore confidence and trust in strata living. We implemented 31 recommendations from the statutory review in December 2023, following the passage of the Strata Legislation Amendment Bill 2023 in November 2023. The Government also passed the Strata Managing Agents Legislation Amendment Act 2024 in September 2024 in response to issues raised about strata managing agent conflicts of interests.
The Government then introduced this bill in November 2024, implementing a further 37 recommendations from the review and further reforms identified by stakeholders since that review. The remaining 36 legislative recommendations are being progressed by the Government. Those include recommendations in relation to subcommittees, building managers, penalty provisions, meeting procedures and minor renovations. I acknowledge the comments of the member for Sydney regarding the costs associated with strata schemes meeting obligations under building legislation, which is outside the scope of the bill. However, ensuring that building work is done properly, in line with the National Construction Code, will reduce strata body costs over the longer term and protect the value of the buildings. The Government will continue to work with industry and strata representatives to ensure that New South Wales building laws strike the right balance between cost and quality.
I also acknowledge the position of the member for Sydney about Fair Trading's new powers to investigate and enforce the owners' corporation duty to maintain and repair common property. As part of implementing the reforms in the bill, Fair Trading will work with stakeholders to set up processes and procedures as to when those investigative and enforcement powers will be exercised, to ensure that they are used effectively, appropriately and where needed the most. Fair Trading will publish those processes and procedures to provide confidence and clarity around their use. The powers are a regulatory response of last resort, such as where the safety of residents is at risk.
I acknowledge the comments of the member for Sydney and the member for Newtown regarding strata committee training. The Government also recognises that strata committee members are volunteers; they are not strata professionals. The requirement for training should not create a barrier to serving on a committee. That is why the Government will work with the strata sector to design the right training for strata committees, with the aim of keeping it as low in cost as possible. The details of the training will be prescribed in the regulation. I acknowledge the position of the member for Sydney about owners experiencing financial hardship in payment of levies. I note the member has foreshadowed some amendments to the bill, which I will speak to at the appropriate time. The Government has been open to pursuing further reforms, if needed, to help owners in financial hardship and prevent unnecessary debt recovery action by the schemes.
I acknowledge the position of the member for Sydney about access to an owner's contact details. NSW Fair Trading receives minimal complaints about information being disclosed in records. Additionally, stakeholders expressed concerns about the administrative burden that may arise from redacting certain information. However, the Government will consult with stakeholders to look into whether contact details of owners should be redacted from such records. This could include exploring how records systems and processes can be optimised.
I also acknowledge comments by the member for Sydney and the member for Newtown about the conduct of building managers. The bill inserts a new duty on building managers to act in in the best interests of the owners' corporation. This would make explicit the expectation that the overriding principle in carrying out their duties is to ensure that they serve the owners' corporation. Further duties for building managers will be set out in the regulation, following consultation with stakeholders.
New section 70A of the bill states that building manager's must not, without reasonable excuse, fail to act in the best interests of the owners' corporation. Penalties will apply if a building manager does not act in the best interests of the owners' corporation. A building manager may have a reasonable excuse for not complying with this duty where, for example, they are directed by the owners' corporation to act in a certain way. A reasonable excuse would be considered on an individual basis by NSW Fair Trading during compliance action.
The Government will further consider terms of appointment of building managers and grounds for termination of building managers in the next phase of reforms. This is to ensure there are no unintended consequences from any reforms to the terms of appointment of building managers. We are committed to strengthening the accountability of building managers and ensuring that we get these reforms right. The member for Sydney also spoke about dispute resolution in mixed-use buildings, which is known in the legislation as "part- strata schemes". Reforms to improve governance, record keeping and dispute resolution in part-strata schemes were identified by the statutory review and will be progressed in a third phase of strata reforms, in consultation with the sector.
I welcome the member for Ryde's interest in strata laws. I welcome his support for the bill although I do think it is a bit rich to criticise the Government for not acting quickly enough. This is the third strata bill we have introduced in less than two years. I am pleased that the member for Ryde recognises the importance of modern strata laws. That is why we are getting on with the job of updating our laws to ensure that strata living is attractive for our growing population. The Government will continue to improve the strata regulatory framework, which will translate into better outcomes for strata communities across New South Wales.
In response to the member for Ryde's query as to why the bill does not ban embedded networks, I point out that the bill implements the recommendations of the statutory review report to protect consumers from being locked into long‑term contracts for the supply of electricity through an embedded network and requires disclosure of embedded networks to prospective buyers. The report did not go as far as to recommend that embedded networks be prohibited. The Independent Pricing and Regulatory Tribunal [IPART] published its final report on the future of embedded networks in New South Wales in May last year. The Government is currently considering IPART's final report.
I do not agree with the member for Newtown's characterisation that the Government locked in strata insurance schemes in the Strata Managing Agents Legislation Amendment Bill, which this Parliament passed last year. I acknowledge there is more work to be done to address the challenges in the strata industry, including the impact of commissions. Further work is already underway to determine the best way to address concerns about agents continuing to receive commissions while keeping costs as low as possible for strata residents. I also acknowledge the member for Newtown's request for the Government to consider further reforms to cover renters who live in strata schemes. I reiterate that the Government continues its work to improve laws to enhance strata living.
I note that the important reforms in the bill also apply to community land scheme laws. I again thank the key stakeholders who have worked so closely with the Government on this bill. I listed them in detail during the second reading speech. This bill would not be possible without their input. I also take this opportunity to thank NSW Fair Trading for its hard work in bringing this bill to fruition. I especially want to thank Katerina Pavlidis, Jill Morris, Melissa Pinto, Leanne Hughes, Sabah Fahad, Timothy Lohman, Ragini Sood, Elizabeth Weisske, Leslie Barraclough, Amy Stiles, Alana Hoyek and Melanie Sun. Lastly, I thank my own staff for their dedication to this important work. Thank you to Alicia Sylvester, Brooke O'Rourke and departmental liaison officers Praveena Shyamala and Khamena Zaya. I commend the bill to the House.
TEMPORARY SPEAKER (Ms Donna Davis): The question is that this bill be now read a second time.
Motion agreed to.
Consideration in detail requested by Mr Alex Greenwich.
Consideration in Detail
TEMPORARY SPEAKER (Ms Donna Davis): By leave: I shall propose the bill in one group of clauses and schedules. The question is that clauses 1 and 2 and schedules 1 to 3 be agreed to.
Mr ALEX GREENWICH (Sydney) (12:45): By leave: I move my amendments Nos 1 and 9 on sheet c2025‑4F in globo:
No. 1Duty of strata committee members to complete training
Page 5, Schedule 1[8], proposed section 37. Insert after line 18—
(4)The regulations may provide for the issuing of notices to inform a member of the strata committee of an owners corporation who has failed to complete the required training that—
(a)the member is required to complete the training, and
(b)if the member does not complete the training within the period prescribed by the regulations the member will cease to be a member of the committee.
No. 9Duty of association committee members to complete training
Page 24, Schedule 2[7], proposed section 41. Insert after line 22—
(4)The regulations may provide for the issuing of notices to inform a member of the association committee of an association who has failed to complete the required training that—
(a)the member is required to complete the training, and
(b)if the member does not complete the training within the period prescribed by the regulations the member will cease to be a member of the committee.
Apartments are run by committees who make important decisions that keep buildings operating and maintained. They make decisions on service providers, waste management, cleaning, repairs and upgrades. They get quotes for services and arrange tenders for building works. They deal in large sums of owners' funds and their decisions affect the buildings' bottom line. I welcome the move to introduce mandatory training for committee members. Buildings function better when committees understand the laws that govern strata, including their rights, obligations, powers, limitations of the owner corporations and strata committee. I understand that the regulations will support the establishment of training and can specify time frames within which a member of a committee needs to undertake the training. The regulations will also need to deal with training fees.
Committees are made up of volunteers who have many other obligations, including work, family, caring, community, and sport, for example. It is not an enjoyable job and it is often thankless. If they struggle to find time to do the training, it is important that they are not kicked off automatically. My amendments will create a regulation‑making power for the issuing of notices to committee members who have not completed the training to ensure they are given reasonable warnings before they would cease to be on the committee.
Mr ANOULACK CHANTHIVONG (Macquarie Fields—Minister for Better Regulation and Fair Trading, Minister for Industry and Trade, Minister for Innovation, Science and Technology, Minister for Building, and Minister for Corrections) (12:47): The Government supports the member for Sydney's amendments Nos 1 and 9. As we know, strata committees comprise volunteers. Details of the training will be discussed with the Owners Corporation Network [OCN] and other stakeholders and will be set out in the regulation. The application of land scheme laws is covered by amendment No. 9. The Government supports amendments Nos 1 and 9.
TEMPORARY SPEAKER (Ms Donna Davis): The question is that the member for Sydney's amendments Nos 1 and 9 on sheet c2025-4F be agreed to.
Amendments agreed to.
Mr ALEX GREENWICH (Sydney) (12:47): By leave: I move my amendments Nos 2, 3, 10 and 11 on sheet c2025-4F in globo:
No. 2Agency agreements for strata managing agents
Page 5, Schedule 1. Insert after line 37—
[12A]Section 49 Appointment of strata managing agents
Insert after section 49(3)—
(3A)The Secretary may approve—
(a)the form of agency agreements for the appointment of strata managing agents, and
(b)the terms, conditions and other provisions that agency agreements for the appointment of strata managing agents must or must not contain.
(3B)The Secretary may approve 1 or more standard form of agency agreements for the appointment of strata managing agents.
No. 3Building manager agreements
Page 6, Schedule 1. Insert after line 19—
[17A]Section 67 Appointment of building managers
Insert after section 67(2)—
(3)The Secretary may approve—
(a)the form of building manager agreements, and
(b)the terms, conditions and other provisions that building manager agreements must or must not contain.
(4)The Secretary may approve 1 or more standard form of building manager agreements.
No. 10Agency agreements for managing agents
Page 25, Schedule 2. Insert after line 3—
[11A]Section 53 Appointment of managing agents
Insert after section 53(2)—
(2A)The Secretary may approve—
(a)the form of agency agreements for the appointment of managing agents, and
(b)the terms, conditions and other provisions that agency agreements for the appointment of managing agents must or must not contain.
(2B)The Secretary may approve 1 or more standard form of agency agreements for the appointment of managing agents.
No. 11Facilities manager agreements
Page 25, Schedule 2. Insert after line 27—
[16A]Section 71 Appointment of facilities managers
Insert after section 71(2)—
(3)The Secretary may approve—
(a)the form of facilities manager agreements, and
(b)the terms, conditions and other provisions that facilities manager agreements must or must not contain.
(4)The Secretary may approve 1 or more standard form of facilities manager agreements.
Most strata managers and building managers use industry-created contracts which favour managers, not owners. Contract negotiations can be difficult for owners to navigate. They may not understand the true impacts and effects of provisions and may not get good outcomes negotiating. They would benefit from starting with contracts that are fair and in the best interests. My amendments empower the secretary to issue model contracts for strata managers and building managers. These will form the basis of negotiations and improve fairness.
Mr ANOULACK CHANTHIVONG (Macquarie Fields—Minister for Better Regulation and Fair Trading, Minister for Industry and Trade, Minister for Innovation, Science and Technology, Minister for Building, and Minister for Corrections) (12:48): The Government supports the member for Sydney's amendments Nos 2, 3, 10 and 11. As we know, our strata managers are not professional, so having a standard contract will be in the best interests to ensure the efficient running of the committees.
Mr TIM JAMES (Willoughby) (12:48): I am very conscious of the time and, as with the earlier amendments, I indicate the support of the Opposition.
TEMPORARY SPEAKER (Ms Donna Davis): The question is that the member for Sydney's amendments Nos 2, 3, 10 and 11 on sheet c2025-4F be agreed to.
Amendments agreed to.
Mr ALEX GREENWICH (Sydney) (12:49): By leave: I move my amendments Nos 4 and 12 on sheet c2025-004F in globo:
No. 4Payment plans
Page 7, Schedule 1[24], lines 23. Omit all words on the line. Insert instead—
Omit section 85(5). Insert instead—
(5)An owners corporation and an owner may agree to enter into a payment plan for the payment of overdue contributions.
(5AA)A payment plan is limited to a period of 12 months but a further plan may be agreed to.
(5AB)An owners corporation must not, by resolution, refuse to enter into payment plans for the payment of overdue contributions.
(5AC)Despite subsection (5AB) an owners corporation may refuse to enter into payment plans for the payment of overdue contributions in particular cases.
No. 12Payment plans
Page 26, Schedule 2[21], line 23. Omit all words on the line. Insert instead—
Omit section 90(5). Insert instead—
(5)An association and a member of the association may agree to enter into a payment plan for the payment of overdue contributions.
(5AA)A payment plan is limited to a period of 12 months but a further plan may be agreed to.
(5AB)An association must not, by resolution, refuse to enter into payment plans for the payment of overdue contributions.
(5AC)Despite subsection (5AB) an association may refuse to enter into payment plans for the payment of overdue contributions in particular cases.
As stated during my contribution to debate on the bill, unpaid levies are a leading cause of forced bankruptcies in New South Wales. Paying levies can be a struggle for any owner, let alone someone on a low income. Everyone is facing higher prices in every aspect of life, including strata levies, while incomes have not caught up. Some owners are especially vulnerable to hardship caused by levies, including pensioners, carers, women experiencing domestic violence, people with poor health and families with low incomes.
While owners' corporations need to be able to raise funds to maintain common property, secure insurance, pay for utilities and engage service providers to manage buildings safely that meet obligations, owners who are struggling should have access to support and options to pay their levies. Most will need extra time and a fair and reasonable plan to get back on track. Bankruptcy proceedings can often include orders for such plans so it would be better for a payment plan to be adopted up-front before someone is forced into bankruptcy. Strata debts under forced bankruptcy are largely made up of interests and fees, not even the initial levy. An early payment plan will avoid the accumulation of additional charges and reduce future hardship. However, owners' corporations can still refuse to even consider payment plans through a resolution at a general meeting, leaving owners vulnerable to high and escalating debt, bankruptcy and loss of a home.
Apartment living is touted as the solution to the housing crisis but if there are no protections against hardship from the cost of owning an apartment, apartment living could become the pathway to a new housing affordability crisis. My amendments will introduce protection by creating positive obligation on all owners' corporations to consider payment plans. Under the amendments, owners' corporations would no longer be able to resolve to exclude payment plans at a general meeting, which will ensure payment plans are available to all vulnerable owners.
Mr ANOULACK CHANTHIVONG (Macquarie Fields—Minister for Better Regulation and Fair Trading, Minister for Industry and Trade, Minister for Innovation, Science and Technology, Minister for Building, and Minister for Corrections) (12:51): The Government supports amendments Nos 4 and 12. Increasing access to payment plans will support owners in financial hardship and thereby reduce the need to take debt recovery action. That will benefit owners as well as owners' corporations and create an obligation on owners' corporations to consider payment plans and not rule them out via a resolution at a general meeting. I note that strata laws amended by amendment No. 12 will also apply to community land schemes.
Mr TIM JAMES (Willoughby) (12:51): The Opposition also supports the amendments. I acknowledge the advocacy and engagement of Sarah Wilson from the Financial Rights Legal Centre and Lody Stewart from Financial Counselling Australia with whom I met last week to discuss these issues. I thank them for their engagement.
TEMPORARY SPEAKER (Ms Donna Davis): The question is that amendments Nos 4 and 12 on sheet c2025-004F of the member for Sydney be agreed to.
Amendments agreed to.
Mr ALEX GREENWICH (Sydney) (12:52): By leave: I move my amendments Nos 5 and 13 on sheet c2025-004F:
No. 5Payment plans
Page 7, Schedule 1[25], lines 25–29. Omit all words on the lines. Insert instead—
Insert before section 85(6)—
(5A)A request by an owner to enter into a payment plan (the request) must not be unreasonably refused by the owners corporation.
(5B)The regulations may prescribe what constitutes an unreasonable refusal in relation to payment plans.
No. 13Payment plans
Page 26, Schedule 2[22], lines 25–29. Omit all words on the lines. Insert instead—
Insert before section 90(6). Insert instead—
(5A)A request by a member of the association to enter into a payment plan (the request) must not be unreasonably refused by the association.
(5B)The regulations may prescribe what constitutes an unreasonable refusal in relation to payment plans.
Payment plans are vital to helping vulnerable owners fulfil their obligations to pay levies, while avoiding hardship, bankruptcy and loss of their home. Strata managers and lawyers often pursue owners who are experiencing debt using aggressive tactics. Information from Financial Counselling Australia, the Financial Rights Legal Centre and the Marrickville Legal Centre reveals predatory approaches, including massive legal costs added to debts with no options provided to help owners meet their obligations. Financial rights organisations are rightly worried that some owners' corporations will get around new requirements to consider payment plans by merely offering a plan that an owner in debt will not be able to comply with, such as a large sum of money in a short period.
The bill before the House allows an owners' corporation to reasonably refuse to enter into a payment plan, with regulations in place that determine what constitutes a reasonable refusal. Allowing owners' corporations to reasonably refuse a payment plan puts the onus on the indebted owner to go to the tribunal to prove that a plan offered by the owners' corporation was not reasonable or a plan proposed by the owner was reasonable, which is an intimidating process for vulnerable owners, such as pensioners or women experiencing domestic violence. My amendments will require owners' corporations to not unreasonably refuse a payment plan. The scheme will have to prove that an owner's request was unreasonable, which provides protection for the vulnerable owner that the reasonable option will not be refused. I commend the amendments.
Mr ANOULACK CHANTHIVONG (Macquarie Fields—Minister for Better Regulation and Fair Trading, Minister for Industry and Trade, Minister for Innovation, Science and Technology, Minister for Building, and Minister for Corrections) (12:53): The Government does not support amendments Nos 5 and 13 because the bill delivers the intent of those amendments in another way. The bill provides that an owners' corporation can reasonably refuse a payment plan because reasonable refusals are meant to protect the financial ability of the strata scheme and ensure fairness to individual lot owners. Reasonable refusal reasons will be set out in the regulation following consultation with stakeholders. They will be clearer and simpler than the alternative unreasonable refusal reasons that may include that the owner has not provided evidence of financial hardship, complied with previous payment plans or that a plan will cause undue financial burden on other owners if urgent or necessary repairs are required.
The bill also provides that the regulations may prescribe requirements for payment plans including that written refusal be given to the owner. Owners will be able to challenge an unreasonable refusal of a payment plan at the tribunal. The tribunal can order the owners' corporation to enter into a payment plan if the owners' corporation has not given a reasonable refusal before going to the tribunal. Overall, the bill's provisions balance the financial interest of strata schemes and the interests of individual owners in financial hardship to ensure the financial stability of the scheme. For those reasons, the Government does not support the amendments.
Mr TIM JAMES (Willoughby) (12:55): For similar reasons, which, in the interests of time, I will not go into, the Opposition shares the Government's view and does not support amendments Nos 5 and 13.
TEMPORARY SPEAKER (Ms Donna Davis): The question is that amendments Nos 5 and 13 on sheet c2025-004F of the member for Sydney be agreed to.
Amendments negatived.
Mr ALEX GREENWICH (Sydney) (12:55): By leave: I move my amendments Nos 6, 7, 14 and 15 on sheet c2025-004F:
No. 6Payment plans
Page 8, Schedule 1[27], line 8. Insert after "subsection."—
Insert instead—
(7)The owners corporation must not charge interest on unpaid contributions that are the subject of a payment plan under consideration by the owners corporation.
No. 7Payment plans
Page 8, Schedule 1. Insert after line 13—
[28A]Section 86 Recovery of unpaid contributions and interest
Insert before section 86(1)—
(1A)An owners corporation must not take action to recover an amount under this section from an owner unless—
(a)the owners corporation has offered the owner the option of entering into a reasonable payment plan for the payment of overdue contributions, and
(b)the owner declined, or failed to respond to, the offer to enter into a reasonable payment plan.
No. 14Payment plans
Page 27, Schedule 2[24], line 8. Insert after "subsection."—
Insert instead—
(8)The association must not charge interest on unpaid contributions that are the subject of a payment plan under consideration by the association.
No. 15Payment plans
Page 27, Schedule 2. Insert after line 13—
[25A]Section 91 Recovery of unpaid contributions and interest
Insert before section 91(1)—
(1A)An association must not take action to recover an amount under this section from a member of the association unless—
(a)the association has offered the member the option of entering into a reasonable payment plan for the payment of overdue contributions, and
(b)the member declined, or failed to respond to, the offer to enter into a reasonable payment plan.
Financial Counselling Australia, the Financial Rights Legal Centre and the Marrickville Legal Centre have informed me that the high debts incurred by owners in strata schemes are largely made of interest and added fees, often higher than the original debt. They report that strata managers and strata lawyers delay decisions on payment plans or offering unreasonable payment plans, while fees are quickly loaded on. It is a deliberate tactic to increase an owner's debt and pressure them to find money from somewhere else immediately. Without an explicit pause on fees while an owner and a scheme are negotiating a payment plan, strata managers and lawyers will continue the current practice of maximum accrual of fees and charges before they decide to refuse the plan. That is what is happening now and we cannot allow the practice to continue. The amendments will pause the accrual of costs while a payment plan is being negotiated. The amendments make it clear that the schemes cannot keep adding cost to debt, which adds to hardship, while they are considering a payment plan, and will encourage fairer negotiation.
Mr ANOULACK CHANTHIVONG (Macquarie Fields—Minister for Better Regulation and Fair Trading, Minister for Industry and Trade, Minister for Innovation, Science and Technology, Minister for Building, and Minister for Corrections) (12:56): The Government does not support amendments Nos 6 and 14 because the bill provides that an owners' corporation must not take action to a recover an amount from an owner if the amount is dealt with under a payment plan and that payment plan is being complied with. The proposed provision could potentially be used by owners who are not in genuine financial hardship to delay debt recovery action. Also, it is not clear what is meant by "under consideration". However, the Government will consider further reforms to stop aggressive collection of arrears in consultation with stakeholders. For those reasons, the Government does not support amendment No. 14 related to community land scheme laws.
Mr TIM JAMES (Willoughby) (12:57): Again, in the interests of time, I will not get into the substance of it, but the Opposition does not support the amendments.
TEMPORARY SPEAKER (Ms Donna Davis): The question is that amendments Nos 6, 7, 14 and 15 on sheet c2025-004F of the member for Sydney be agreed to.
Amendments negatived.
Mr ALEX GREENWICH (Sydney) (12:57): By leave: I move my amendments Nos 8 and 16 on sheet c2025-004F:
No. 8Payment plans
Page 8, Schedule 1. Insert after line 13—
[28B]Section 86 Recovery of unpaid contributions and interest
Insert after section 86(2A)—
(2AA)An owners corporation may only take action to recover the reasonable expenses of the owners corporation incurred in recovering unpaid contributions and any interest payable on unpaid contributions—
(a)if the owners corporation has offered the owner the option of entering into a payment plan for the payment of the unpaid contributions, and
(b)pursuant to an order of the Tribunal or a court under this section.
No. 16Payment plans
Page 27, Schedule 2. Insert after line 13—
[25B]Section 91Recovery of unpaid contributions and interest
Insert after section 91(3)—
(3A)An association may only take action to recover the reasonable expenses of the association incurred in recovering unpaid contributions and any interest payable on unpaid contributions—
(a)if the association has offered the member of the association the option of entering into a payment plan for the payment of the unpaid contributions, and
(b)pursuant to an order of the Tribunal or a court under this section.
These amendments will exclude any debt recovery action for costs associated with unpaid levies without a court or tribunal order. Strata managers and lawyers are racking up significant costs through aggressive legal pursuits of owners in debt. The fees get added to the owner's debt, along with interest, and then the owner is pursued through debt recovery. Some owners' corporations have by-laws for debt recovery of associated costs, which the courts and tribunals have found to be harsh, oppressive and unconscionable. The amendments will protect against predatory practices by prohibiting any recovery of costs associated with a debt, such as legal costs, without a court or tribunal order. The court or tribunal will only be able to approve expenses for debt recovery that are reasonable. That will encourage strata managers and lawyers to pursue only reasonable costs and will rule out by-laws that allow debt recovery for costs without a court or tribunal order.
The Government will need to work to ensure that payment plans are offered to owners in debt that are fair and reasonable and that owners are given adequate time to assess their options and to negotiate. More will be needed to protect vulnerable owners from hardship when they face challenges in paying rent. I thank Financial Counselling Australia, the Financial Rights Legal Centre and Marrickville Legal Centre for bringing this important concern to the attention of my office. I will work with them to further monitor the success of the amendments and propose further reform. I commend the amendments to the House.
TEMPORARY SPEAKER (Ms Donna Davis): With the concurrence of the House, we will continue with proceedings.
Mr ANOULACK CHANTHIVONG (Macquarie Fields—Minister for Better Regulation and Fair Trading, Minister for Industry and Trade, Minister for Innovation, Science and Technology, Minister for Building, and Minister for Corrections) (12:59): The Government supports amendments Nos 8 and 16. We do want payment plans to be more accessible to owners in arrears to reduce instances of owners' corporations issuing debt recovery when it is not necessary. The Government supports the amendments.
Mr TIM JAMES (Willoughby) (12:59): I wish to confirm the Opposition supports these amendments as well.
Mr ALEX GREENWICH (Sydney) (12:59): I thank the Government and the Opposition for their cooperation throughout the amendment process and strengthening the bill, particularly for strata owners facing financial hardship. I say a massive thank you my policy advisor Tammie Nardone for working around the clock to get these amendments done on the second day of Parliament. I also thank the Minister's staff, Alicia Sylvester and the team from Fair Trading for their great work.
TEMPORARY SPEAKER (Ms Donna Davis): The question is that amendments Nos 8 and 12 on sheet c2025-004F of the member for Sydney be agreed to.
Amendments agreed to.
TEMPORARY SPEAKER (Ms Donna Davis): The question is that clauses 1 and 2 and schedules 1 to 3 as amended be agreed to.
Clauses 1 and 2 and schedules 1 to 3 as amended agreed to.
Third Reading
Mr ANOULACK CHANTHIVONG: I move:
That this bill be now read a third time.
Motion agreed to.
TEMPORARY SPEAKER (Ms Donna Davis): It being after 1.00 p.m., pursuant to standing and sessional orders, the committees take-note debate will now commence.
