Australia’s strata and management rights sector is entering a period of meaningful legislative change, with recent reforms already in effect and further updates continuing into 2026. For operators, investors and committees, understanding these changes is becoming critical—not just for compliance, but for protecting asset value and navigating future opportunities.
A Shift Toward Flexibility and Development
One of the most significant reforms comes from amendments to Queensland’s Body Corporate and Community Management (BCCM) legislation, which took effect from May 2024.
Historically, terminating a community titles scheme required unanimous agreement from all owners—an almost impossible hurdle in many ageing complexes. That has now changed.
Under the new laws, schemes can be terminated for “economic reasons” with the support of just 75% of lot owners .
This is a major shift. It opens the door for redevelopment of older buildings, particularly across high-value coastal markets like the Gold Coast and Sunshine Coast, where land value often outweighs the value of the existing building.
For management rights holders, this introduces both opportunity and risk. Redevelopment potential may drive site value, but it also raises questions about the longevity of existing caretaking agreements.
Increased Regulation and Disclosure in Sales
Another major change affecting the industry is the rollout of new disclosure requirements under the Property Law Act reforms, which came into effect in 2025.
These laws significantly increase the level of detail vendors must provide when selling property-related businesses, including management rights.
Failure to meet disclosure obligations may allow buyers to terminate contracts, making transactions more complex and potentially slower.
For brokers and sellers, this means:
- More documentation upfront
- Greater legal scrutiny
- Increased importance of accurate financial and operational reporting
In short, the days of “light-touch” management rights sales are disappearing.
Stronger Powers for Body Corporates
Recent legislative updates have also expanded the authority of body corporates in several key areas:
- Smoking bans: Committees can now implement by-laws prohibiting smoking in common and even outdoor areas
- Vehicle towing: Bodies corporate can more easily remove unauthorised vehicles without lengthy dispute processes
- Insurance flexibility: Alternative insurance arrangements can now be approved more efficiently
At the same time, governance standards have tightened, including enhanced codes of conduct for body corporate managers and caretakers.
For management rights operators, this signals a continued push toward professionalism and accountability across the sector.
Pets, Lifestyle & Resident Rights
One of the more widely discussed changes is the shift in pet ownership rules.
Body corporates are no longer allowed to impose blanket bans on pets, and requests must be assessed reasonably, with strict response timeframes.
This reflects a broader legislative trend: moving toward more resident-friendly, lifestyle-focused strata living.
While positive for occupiers and investors, it can create additional operational considerations for managers—particularly around disputes, noise, and common property use.
New Compliance Requirements Emerging in 2026
Looking ahead, further reforms coming into effect from 2026 will increase compliance obligations for new developments and strata schemes.
These include:
- Mandatory initial maintenance schedules
- Stricter capital works fund planning requirements
- Expanded disclosure obligations for utilities and embedded networks
These changes aim to improve transparency and long-term financial planning, but they also add layers of complexity for managers and committees.
What This Means for the Industry
Taken together, these reforms point to a clear direction:
- More regulation and transparency
- Greater flexibility for redevelopment
- Stronger rights for residents
- Higher expectations on managers and operators
For management rights businesses, the implications are significant.
Operators who stay ahead of compliance, maintain strong relationships with committees, and understand the evolving legal landscape will be best positioned to protect and grow their assets.
Final Thought
The management rights sector has always been a unique hybrid of property and business.
What we’re now seeing is its evolution into a more regulated, more transparent, and ultimately more institutional-grade asset class.
Whether that proves to be a headwind or a tailwind will depend on how well operators adapt—but one thing is certain: standing still is no longer an option.