Use of NSW Fair Trading’s free strata mediation service has increased sharply, with new figures showing more apartment owners are turning to mediation to resolve disputes before taking matters to the tribunal.
Applications increased 30 per cent over the past financial year, rising from 2,760 to 3,591.
The service operates through the NSW Strata and Property Taskforce, which was established with $8.4 million in government funding to strengthen oversight of the strata sector and support apartment owners.
Around 76 per cent of matters are now fully resolved, according to the latest NSW Government data.
Satisfaction With Mediation Rises
Applicant satisfaction with the service increased to around 70 per cent between April and June 2026.
Over the same period, dissatisfaction fell from 21 per cent to 15 per cent, the lowest level recorded in the latest reporting period.
NSW Fair Trading provides strata mediation free of charge, helping owners, residents and owners corporations attempt to reach an agreement without immediately proceeding to the NSW Civil and Administrative Tribunal.
For most types of strata disputes, mediation must generally be attempted before an application can be made to NCAT.
Repairs and Maintenance Remain the Biggest Source of Disputes
Repairs and maintenance remain the most common issue brought to mediation.
Applications involving these matters increased 44 per cent over the past year and now represent around 40 per cent of all strata mediation cases.
Common disputes can involve:
- Leaking roofs and water damage
- Building defects
- Responsibility for common property
- Access to shared areas
- Renovations involving common property
- The timing and responsibility for repairs
NSW strata law places a legal duty on owners corporations to maintain and repair common property.
New Enforcement Powers for Maintenance Failures
The mediation service is operating alongside expanded compliance powers for NSW Fair Trading.
New strata laws allow Fair Trading to take stronger action where owners corporations fail to meet their obligations to maintain and repair common property, including the use of compliance measures and enforceable undertakings.
The reforms are designed to resolve serious maintenance problems earlier and reduce the need for owners to pursue lengthy and expensive litigation.
NSW has also introduced strata reforms in stages, with further changes taking effect from 1 October 2026.
Broader Changes to NSW Strata Laws
Recent reforms have also changed several areas of strata management, including:
- Stronger disclosure requirements for strata managing agents
- Payment-plan protections for owners experiencing financial hardship
- Greater transparency around initial levy estimates in new developments
- Restrictions on insurance commissions for strata managers
- Simpler approval processes for some minor renovations
- Fewer barriers to sustainability measures such as solar panels and EV charging infrastructure
The reforms form part of the NSW Government’s broader overhaul of strata regulation.
Around 1.2 million people live in apartments and other strata properties across NSW, making dispute resolution and strata management an increasingly significant part of the state’s housing system.
Free Mediation Available Before NCAT
Owners and residents who cannot resolve a dispute through direct discussion or their owners corporation can apply to NSW Fair Trading for free mediation.
The service can assist with disputes involving repairs, maintenance, by-laws, parking, pets, noise, insurance, meetings and other issues covered by NSW strata law.
Fair Trading says the online application generally takes around 15 minutes to complete.
The latest figures suggest more owners are using mediation as an alternative to formal tribunal proceedings, particularly as disputes over building maintenance and common property continue to rise.
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