From 1 October 2026, NSW strata committee members will be subject to a significant new governance requirement. New and returning committee members must complete free online training delivered by NSW Fair Trading within three months of their appointment. 

The reform forms part of a broader suite of strata law changes aimed at improving governance and supporting committee members who make significant financial and operational decisions. In particular, the new requirements reflect an increasing regulatory focus on accountability, informed decision-making and compliance within strata schemes. 

Although the requirement is framed as a practical education initiative, it is also likely to have broader legal, governance and risk management implications for owners corporations and their insurers. 

The introductory training course will be free, self paced and available through the NSW Government's digital platform, Strata Hub. Once the introductory training has been completed, committee members will have access to additional training each year. NSW Fair Trading has indicated that further details of the annual training requirements will be published in 2027. 

The requirement applies not only to first time committee members, but also to returning members appointed on or after 1 October 2026. Committee members appointed before that date will not be required to complete the training until they are next appointed, although they may choose to complete it voluntarily once it becomes available. 

A committee member who does not complete the training within three months of appointment will automatically cease to be a committee member. The requirement does not apply to: 

• committee members in two-lot strata schemes; 

• members of the Australian College of Strata Lawyers; 

• strata managing agents who serve on committees; and 

• persons appointed to fill a casual vacancy for less than three months. 

NSW Fair Trading has confirmed that it will not take enforcement action against a committee member who fails to comply with the training requirement. However, the member will automatically cease to hold office, without notice. 

Failure to monitor training completion may create uncertainty about committee composition, authority and decision-making. NSW Fair Trading advises that a decision involving a person who had automatically ceased to be a committee member will generally remain valid if the committee acted in good faith and did not know that the person was no longer a member. 

The obligation to complete the training rests with the individual committee member, rather than the strata manager or another third party. However, NSW Fair Trading recommends that committee secretaries take an active role in supporting and monitoring compliance. 

Recommended steps include collecting Certificates of Completion, retaining them for at least one year, sending reminder notices no later than two months after appointment, issuing a failure notice as soon as practicable where training is not completed by the deadline and notifying the remaining committee members of any resulting vacancy. Exempt members should provide evidence of their exemption to the committee secretary. 

For insurers, the reforms may support improved risk management within strata schemes by giving committee members a baseline understanding of governance, budgeting, repairs, maintenance, dispute resolution and risk management. Whether the training reduces the frequency or severity of governance-related claims will depend on how effectively that knowledge is applied in practice. 

The introduction of mandatory training may also influence expectations about the knowledge reasonably held by committee members. In a later dispute, training completion records and the course content may be relevant to assessing what information was available to decision-makers and how they approached their statutory and governance responsibilities. 

Coverage issues may also arise where a committee member continues to act after automatically ceasing to hold office. The outcome will depend on the policy wording and the particular facts, including relevant definitions, insuring clauses, exclusions and any provisions dealing with capacity, authority, notification and cooperation. The training requirement does not determine whether cover is available.

With commencement approaching, owners corporations and committees should begin preparing now. Practical steps include: 

• Identifying members who will need to complete training following appointments made on or after 1 October 2026. 

• Establishing a process for members to provide Certificates of Completion or evidence of an exemption. 

• Ensuring committee secretaries maintain completion records and reminder notices for at least one year. 

• Recording appointment dates, training deadlines, vacancies and replacement appointments accurately. 

• Updating governance procedures so that a person who ceases to hold office does not participate in later committee decisions. 

• Familiarising committee members and strata managing agents with NSW Fair Trading guidance and templates as they become available. 

• Encouraging existing committee members to complete the training voluntarily, even if they are not yet required to do so. 

The new mandatory training requirements are more than a simple education initiative. They form part of a broader regulatory movement towards greater professionalism, accountability and transparency in strata governance. 

For committee members, the training provides an opportunity to better understand the responsibilities associated with managing assets and making decisions that affect owners and residents. For owners corporations and strata managing agents, the reforms create practical record-keeping and governance tasks. For insurers, they may improve risk awareness while also introducing new considerations when claims involve committee authority, decision-making or continued conduct after a member has ceased to hold office. 

Whether the reforms result in fewer disputes remains to be seen. What is clear is that NSW Fair Trading expects those who serve on committees to have at least a baseline understanding of the responsibilities that accompany the role. 

To discuss how the new strata committee training requirements may affect governance, decision-making, compliance obligations or insurance exposures within your scheme, contact our team.