Every strata scheme runs on a set of rules. They decide whether you can keep a dog, where you can park, how late you can have the music up, and what you can change inside your own lot. Those rules are the by-laws.
By-laws keep a shared building liveable. They also cause some of the most common disputes in strata, usually because owners do not know what the by-laws say, or because a committee applies them unevenly. Here is how they work in New South Wales, and how your scheme can change one when it needs to.
What by-laws cover
By-laws govern conduct and the use of both individual lots and the common property. They sit under the Strata Schemes Management Act 2015, and every scheme has them. Common areas they cover include:
- Pets: whether they are allowed and any conditions.
- Parking: visitor spaces, allocated spots and rules on common driveways.
- Noise and behaviour that affects other residents.
- Renovations and alterations to a lot, and what needs approval.
- Use of common property and shared facilities.
- Hanging washing, signage, and the look of the building from outside.
By-laws bind owners, tenants and other occupiers. If you let your lot, you are usually responsible for making sure your tenants have a copy and comply, so it pays to know what yours say.
How a scheme makes or changes a by-law
By-laws are not fixed forever. A scheme can add, change or remove a by-law when the owners agree to. The route runs through a general meeting, not a quick committee chat.
In general terms, a proposed by-law change is put to the owners corporation at a general meeting and decided by a special resolution, a higher level of agreement than an ordinary majority. Once passed, the change has to be registered so it formally takes effect. The exact voting threshold, the notice required and the registration steps are set in the Act, and the detail can change. So before your committee tries to change a by-law, confirm the current process with NSW Fair Trading or your strata managing agent.
If you are not yet comfortable with how general meetings and special resolutions work, our guide to running a strata AGM walks through the meeting process.
By-laws must be lawful
A scheme cannot make up any rule it likes. By-laws must be lawful. A by-law cannot be harsh, unconscionable or oppressive, and it cannot override the law of the land. For example, a by-law that tried to ban a category of person, or that breached other legislation, would not stand.
Where an owner believes a by-law is unlawful or unfair, it can be challenged, and the NSW Civil and Administrative Tribunal (NCAT) can deal with certain by-law disputes. If your committee is drafting a new by-law, the safe move is to get it checked rather than risk one that does not hold up. Confirm the position with NSW Fair Trading or seek proper advice.
Applying by-laws fairly
Having good by-laws is only half the job. Applying them consistently is the other half. A committee that enforces the parking rule against one owner but lets another off invites a dispute and weakens the rule for everyone. Fair, even-handed enforcement is part of good governance.
We cover this in our guide to good strata governance and common mistakes, where ignoring or unevenly enforcing by-law breaches is one of the recurring traps. When a breach continues, there is a proper process to follow, which can lead to NCAT if it is not resolved. Check the current steps with NSW Fair Trading or your strata managing agent.
What this means for committee members
If you are on the committee, you help apply the by-laws day to day and you may help draft or update them. That makes knowing the basics part of the role: what the by-laws cover, how to change one properly, and the limits on what a by-law can say. Our pillar guide to strata committee members in NSW sets it all in context.
Archer Institute Strata Members CPD covers by-laws, the meeting process and the duties of a committee in plain English, online and self-paced. It is a quick way to feel confident before you next have to apply or change a rule.
Your next step
Know your by-laws, follow the proper process to change them, and apply them fairly. Browse the Strata Members CPD course or call our Australian-based team on 1800 069 273, and we will tell you what the course covers.
