If you own in a 2-lot strata scheme — a duplex, dual occupancy, or small two-villa development — the NSW Government is about to make life a lot simpler. The pending Bill 2025 reclassifies 2-lot schemes as "small strata schemes" and strips away most of the formal meeting and committee requirements.
What's a "small strata scheme"?
Under the proposed new Section 7A, a 2-lot scheme is reclassified as a "small strata scheme." For these schemes, the following requirements would be removed:
- Passing special resolutions
- Holding annual general meetings (under Sections 14 or 18)
- Holding other general meetings (under Section 19)
- Constituting a strata committee (under Section 29)
- Preparing a plan of anticipated major expenditure (Section 80)
- Provision of information to the Secretary under certain regulations
- Other requirements that may be prescribed by regulation
How decisions get made instead
For a 2-lot scheme, decisions that would otherwise need a general meeting, an officer of the owners corporation, a strata committee, or an officer of the strata committee can be satisfied by a written resolution approved by all owners.
In plain English: both owners sign off, in writing — that's the decision. No meeting agendas, no quorum, no formal voting.
Other related changes
- Section 5(2A) — the original owner vote reduction (where unit entitlements exceed a specified level) will no longer exclude 2-lot schemes.
- Section 30(3) removed — strata committee for a 2-lot scheme is no longer required.
- Section 74(5)(a) — a decision by a 2-lot scheme not to establish a capital works fund will be regulated under Section 7A rather than the existing pathway.
- Section 160(4)(a) — a decision by a 2-lot scheme not to insure jointly will be regulated under Section 7A rather than the existing pathway.
What this means for your scheme
This is a sensible reform. Anyone who's been through a formal AGM for a 2-lot scheme knows the process is overkill — agendas, notices, minutes, motions, voting, all for two people who probably speak every week anyway. The pending changes recognise that.
If you're in a 2-lot scheme we manage, expect a simpler service offering once this commences. Less paperwork, lower cost, same protections (because unanimous written sign-off still ensures both owners agree).
The flip side: with no committee structure and no formal meetings, good record-keeping becomes even more important. The written resolution is the only paper trail — so we'll always recommend keeping signed copies safely.
What hasn't changed
The pending Bill simplifies how decisions are made — it doesn't remove the underlying obligations. 2-lot schemes still need to:
- Maintain common property
- Hold required insurance
- Comply with by-laws
- Resolve disputes properly
- Lodge annual returns to Strata Hub
What's removed is the formal process around making those decisions, not the decisions themselves.
Source
Bannermans Lawyers — "Largest reform for 2 lot schemes yet" (24 April 2026): bannermans.com.au/library/largest-reform-for-2-lots-schemes-yet-massive-changes-to-strata-managers-offerings-in-the-future
Strata Schemes Legislation Amendment (Miscellaneous) Bill 2025 (NSW Parliament — pending). Bill text and current status: parliament.nsw.gov.au