NSW Property Reforms in 2026: What Has Changed and Who Will Be Affected @Cubecorp

New South Wales has introduced several significant property laws and regulations in 2026 that affect all buyers. The focus of these reforms is transparency, building quality, and strata accountability.

(Image credit to: https://www.smh.com.au/national/nsw-cracks-down-on-underquoting-real-estate-agents-20251113-p5nfc2.html)

1. Market Transparency: The "Underquoting" Crackdown

The NSW Government has implemented some of the nation's toughest laws to stop real estate agents from providing misleadingly low price estimates.

Mandatory Price Guides: Agents must include a price or price guide on all advertising. They can no longer say "Price on Request" or "Contact Agent" without providing a specific figure.
Statement of Information (SOI): Similar to Victorian laws, agents must now provide an SOI for every listing. This document must include three comparable sales and the suburb's median price to justify the asking price.
Massive Fines: Penalties for underquoting have jumped from $22,000 to $110,000, or three times the agent’s commission (whichever is greater).

2. Major Strata & Apartment Reforms (Commencing April 1, 2026)

If you are buying an apartment or a townhouse, these new rules provide much stronger protection against "buying a lemon."

Independent Levy Certification: For new multi-storey buildings, developers must now have their initial strata levy estimates reviewed and certified by an independent surveyor. This prevents developers from setting "low" levies to attract buyers, only for those levies to skyrocket once the developer leaves.
Standardized 10-Year Maintenance Plans: All strata schemes must now use a new government-standardized form for their 10-year capital works fund plan. This makes it easier for you to compare the "financial health" of different buildings during your due diligence.
Strata Building Bond Increase: From July 1, 2026, the building bond that developers must lodge to cover potential defects in new apartments increases from 2% to 3% of the contract price.

3. Rental & Tenancy Overhauls

If you plan to rent out your investment, these new rules (effective from mid-2025/early 2026) change how you manage tenants:

Ending "No-Grounds" Evictions: Landlords can no longer end a periodic (month-to-month) lease without a specific, legally recognized reason (e.g., selling the property, moving in themselves, or major renovations).

Simplified Pet Rules: It has become significantly harder for landlords to refuse a tenant’s request to keep a pet.

No-Fee Payment Options: Landlords/agents must offer at least one free way to pay rent (e.g., bank transfer), ending the practice of forcing tenants to use paid third-party apps.

4. Tax & Land Ownership Changes

Principal Place of Residence (PPR) Threshold: To claim a land tax exemption on your home, owners must now hold at least a 25% interest in the property. You can no longer claim a full exemption if you own only a tiny fraction (e.g., 1% or 5%) of the home you live in
Land Tax Threshold Freeze: The general land tax threshold for 2026 remains frozen at $1,075,000. Because property values have generally risen, more "average" investors are finding themselves caught in the land tax net for the first time.

Feature	Old Rule	New 2026 Rule
Price Guides	Optional in some ads	Mandatory on all advertising
Strata Levies	Estimated by Developer	Certified by Independent Surveyor
Building Bond	2% of construction cost	3% of construction cost
Evictions	"No-grounds" allowed	Reason-based only

Sources:

Legal Disclaimer

The information provided in this guide is for general informational purposes only and does not constitute legal, financial, or professional real estate advice.

The regulatory landscape in New South Wales is subject to frequent and significant changes. Specifically, for 2026:

Statutory Compliance: Foreign investment rules (FIRB), state surcharges, and the "established home ban" are governed by strict federal and state legislation. Non-compliance can result in forced divestment and criminal penalties.
No Reliance: You should not rely on this information as a substitute for professional advice. Every property transaction is unique, and your specific visa status, financial position, and the property’s classification will affect your legal obligations.
Independent Verification: Before entering into any contract or making a financial commitment, you must seek independent advice from a licensed Australian solicitor or conveyancer, a registered tax agent, and a qualified financial advisor.
Accuracy: While we strive for accuracy, we accept no liability for any errors, omissions, or misstatements. All figures, including tax rates and thresholds, are estimates based on 2026 projections and should be verified via official government portals (ATO and Revenue NSW).