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) (16:07): In reply: I thank members for their contributions to debate on the Strata Schemes Legislation Amendment (Miscellaneous) Bill 2025, including the member for Willoughby, the shadow Minister. I also thank the members representing the electorates of Gosford, Penrith, Newtown, Bankstown, Coogee, Sydney, Granville and Mount Druitt. More and more families are choosing strata living, whether in a two-lot duplex or a high-rise apartment tower. It is a cornerstone of our housing system and our housing future. The amendments in the bill arise from a comprehensive statutory review and extensive consultation, ensuring that the voices of owners, tenants and industry professionals have been heard.

The laws that govern strata must keep pace with the way people live today. They must protect consumers, promote transparency and support good governance. The bill does exactly that. It delivers practical reforms that make strata and apartment living simpler, fairer and future ready. The bill gives owners the right to install electric vehicle charging infrastructure on their lots while maintaining the sustainability of their buildings. It removes unnecessary compliance burdens for two-lot schemes by eliminating requirements for such schemes to have committees, hold meetings and complete annual reporting.

The bill upholds consumer protections by placing fair limits on the bonds and fees that owners' corporations can charge residents; increasing transparency, such as by allowing NSW Fair Trading to publish the compliance notices it issues for owners' corporations about their repair and maintenance obligations; empowering the tribunal to terminate building management agreements where a building manager breaches their duties, ensuring accountability where it matters most; increasing maximum penalties for owners' corporations and strata managing agents who do the wrong thing; promoting fairness and flexibility in the management of mixed-use buildings by introducing a maximum five-year term for managing agents; and improving transparency and accessibility for owners and buyers in mixed-use buildings by setting minimum standards for record keeping. This includes the mandatory retention of electronic records and contract registers for at least seven years. The important reforms in the bill also apply to community land scheme and conveyancing laws, where needed.

I respond briefly to points made by members. I thank the shadow Minister, and member for Willoughby for indicating the Opposition's support for the bill. I appreciate the collaborative approach he has taken. I simply dismiss his comments about the Government's lack of timely action in this space. The laws that govern apartment, duplex and townhouse living were completely ignored by the former Government for 12 long years. The bill is the fourth tranche of reforms in three years to improve apartment living as New South Wales looks to increase density to address the housing challenge. We do not apologise for modernising strata laws to better support apartment living in New South Wales after years of neglect from the Opposition. I acknowledge the comments made by the member for Willoughby and the member for Sydney in relation to the strata renewal process under the Strata Schemes Development Act. Their comments were almost polar opposites.

Some in the development industry consider the renewal process to be complex and lengthy and that it can be too difficult for older strata schemes to redevelop if they do not get enough votes from owners. Strata renewal is not a compulsory acquisition scheme. It is a collective decision-making framework designed to allow owners to agree on the future of their building. The process is intentionally rigorous. It contains a series of mandatory steps as safeguards to ensure owners are fully informed about the proposal and how they will be compensated. It is imperative that all owners have a say, can make an informed decision and are not subject to any form of coercion throughout the process. Ensuring that owners participate freely and without undue pressure is essential to maintaining the integrity and fairness of the renewal process.

The bill concludes the implementation of the statutory review recommendations, but the conversation around strata continues. The Government will maintain ongoing dialogue with the development industry and other strata stakeholders as it monitors the application of the reforms in practice. It is fundamental that we consider the interests of all parties to ensure these laws remain robust, fair and fit for purpose.

I acknowledge The Greens' support for the bill, as indicated by the member for Newtown. I am glad we agree on the need to update our laws to better support the more than 1.2 million people living in apartments and strata. I also thank the member for Sydney for his support of the bill. In relation to insurance commissions for strata managing agents, I reassure the member for Sydney and the member for Newtown that the Government is committed to protecting consumers. The Productivity and Equality Commission has been reviewing the market impacts of prohibiting such commissions. The final report is due to come to me on 27 February. The Government will then consider the best way forward to support industry to provide quality services to strata owners while ensuring owner confidence in agents is restored.

I acknowledge the comments made by the member for Newtown and the member for Sydney about the need to assist strata residents with the costs of maintenance and repair. I am pleased to remind the House that the Government has already implemented significant reforms to assist owners suffering financial hardship. As with any reform, it needs to balance the overall financial interests of a strata scheme with the interests of individual lot owners in financial hardship to ensure the long-term financial sustainability of a strata scheme.

Reforms that started in October 2025 require levy notices issued to lot owners to include information focused on the assistance available to owners experiencing financial hardship such as financial counselling services and options to pay arrears. The bill goes one step further by requiring a reminder notice to be issued to an owner when their levy is overdue. To stop aggressive collection of arrears, it also creates a power to prescribe circumstances where an owners corporation may or may not take debt recovery action. The Government has introduced practical measures to help apartment owners in financial hardship and will continue to engage with stakeholders to monitor the impact of the new laws. I note that the member for Sydney will propose amendments to the bill. I will speak to those at the appropriate time.

Again I thank the many stakeholders who have worked so hard and so closely with the Government on the bill. It would not be possible without their input. I thank NSW Fair Trading and the Office of the Registrar General for their hard work in helping bring the bill to the Parliament. I especially thank Jasmin Chin, Donna Harris, Amy Stiles, Alana Hoyek, Catherine Tong, Melanie Sun, Leanne Hughes, Diana Holy, Katerina Pavlidis, Cassie Jacobs, Jill Morris, Timothy Lohman and Leslie Barraclough. The bill has also been closely developed with my colleague the Minister for Customer Service and Digital Government. I thank the Minister for his support and acknowledge the work of his deputy chief of staff, James Connolly. Lastly, I thank my staff for their dedication to this important work: Alicia Sylvester, Jonathan Stanbury and Brooke O'Rourke. I also thank Nisan Baysal, a departmental liaison officer in my office who has provided great support to the team. I commend the bill to the House.