If you’re involved in delivering or managing a new multi‑storey strata scheme, there’s a major reform on the horizon that’s worth getting ahead of. From 1 April 2026, the rules around preparing an initial maintenance schedule and initial administrative fund and capital works fund levies are changing in New South Wales — and for the first time, an independent surveyor will play a mandatory role in the process.
Until now, the original owner (usually the developer) has been responsible for preparing:
- The initial maintenance schedule and providing it to the owners corporation at least 14 days before the first AGM. That part stays the same. What’s new is the introduction of a standardised form and a requirement for an independent surveyor to review and certify the document for multi‑storey schemes.
- Setting the first-year levies for both funds so they are “sufficient to meet the expected expenditure” of the owners corporation for that year. This includes:
- Administrative Fund: Day-to-day running costs (cleaning gardening, utilities, insurance, fire safety, waste, etc.)
- Capital Works Funds: Long-term repair and replacement costs (plant, equipment, common property components)
There is no prescribed formula, but the levies must be reasonable and based on the building’s actual needs. Now however, like the IMS, the initial levies must be reviewed and certified by an independent surveyor.
So what does that mean in practice?
For any new building with more than two storeys, the original owner will now need to engage a qualified, independent surveyor — someone who is a Certified Quantity Surveyor (AIQS) or a Chartered Quantity Surveyor (RICS) to:
- Confirm the initial maintenance schedule has been prepared using the new standard form
- Certify that the initial maintenance schedule reflects the actual common property and the expected expenditure for each maintenance item
- Review the initial levy estimates for the administrative and capital works funds
- Certify that those estimates reflect the expected expenditure for the first year after the AGM
The aim of the reform is simple: greater transparency, more reliable financial planning, and better protection for owners. By involving an independent professional, the legislation ensures that the building’s early maintenance and financial expectations are realistic, unbiased, and clearly documented.
If your project will hold its first AGM on or after 1 April 2026, now is the perfect time to understand the new requirements, plan your timelines, and engage an independent surveyor early.