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Whether a strata decision is valid usually turns on one thing: was it passed by the right kind of resolution? NSW strata law has three — ordinary, special and unanimous — and using the wrong one is a common way decisions get challenged. Here is what each requires and how voting works at a general meeting.
Why the resolution type matters
At a general meeting, the owners corporation makes decisions by voting on motions. The Strata Schemes Management Act 2015 sets the bar each motion has to clear depending on how significant it is. Get the threshold right and the decision stands; get it wrong — say, changing a by-law by a simple majority — and it can be overturned.
Ordinary resolution — a simple majority
Most decisions are made by ordinary resolution: a simple majority of the votes cast (more in favour than against). Examples include approving the budget and levies, spending within the committee’s limits, and appointing a strata managing agent. On a show of hands each lot has one vote; if a poll is called, votes are counted by unit entitlement instead.
Special resolution — at least 75%
More significant decisions need a special resolution. In NSW the test is precise: a special resolution passes only if the votes cast against it are no more than 25% — counted by unit entitlement on a poll. In practice that means at least 75% in favour. Special resolutions are required to make or change by-laws (including pet, parking and renovation rules), to grant exclusive use of common property, and to approve major renovations and significant changes to common property.
Unanimous resolution — no votes against
A few fundamental decisions need a unanimous resolution: passed at a properly convened meeting with no vote cast against it (section 5). These are reserved for the big, irreversible things — for example, transferring or dealing with common property, or distributing surplus funds. A single ‘no’ vote defeats it.
Run motions, apply the threshold automatically
OneStrata puts motions to owners, records each vote, and applies the right majority — ordinary or the 75% special-resolution test — by unit entitlement, so the result is right and on the record.
Show of hands vs a poll — and unit entitlement
How votes are counted depends on whether a poll is demanded. On an ordinary show of hands, each lot generally has one vote. If a poll is called, votes are weighted by unit entitlement — so a lot with a larger entitlement carries more weight. Special resolutions are always measured by unit entitlement. Two quirks worth knowing: abstentions do not count as votes, and where the original owner (developer) still holds at least half the total unit entitlement, the value of their vote on a poll or special resolution is reduced to keep voting fair.
Who can vote
Generally, only financial owners — those whose levies are paid up — can vote on ordinary and special resolutions. An owner with overdue levies (an ‘unfinancial’ owner) loses their vote on those, and can only vote on a unanimous resolution. Co-owners and companies vote through a nominated representative.
Proxies
An owner who cannot attend can appoint a proxy to vote for them, using the correct written form lodged in time. There are limits on how many proxies one person may hold, to stop any single person controlling a meeting. Schemes can also adopt electronic and pre-meeting voting, which lifts participation in smaller schemes where not everyone can attend.
Which resolution does this need?
- Approve the budget and levies → ordinary
- Spend within the committee’s limits → ordinary
- Appoint a strata managing agent → ordinary
- Make or change a by-law (pets, parking, renovations) → special
- Grant exclusive use of common property → special (plus the owner’s consent)
- Approve a major renovation → special
- Transfer or deal with common property; distribute surplus → unanimous
Owners often think a special resolution needs “75% of owners” or “75% of those present”. It does not — it is no more than 25% of the votes cast against, measured by unit entitlement on a poll. A few large-entitlement lots voting no can defeat a motion most owners support, so count entitlements, not heads.
Doing it the easy way with OneStrata
- Motions on the record. Put each motion to owners and capture how every lot voted — not a scribbled tally.
- The right threshold, automatically. OneStrata applies the ordinary-majority or special-resolution (75%) test for you, counted by unit entitlement, so you know instantly whether a motion passed.
- By lot or by entitlement. Switch between one-vote-per-lot and entitlement-weighted voting as the situation requires.
- Minutes that match the vote. The result flows straight into the meeting record, with a tamper-proof trail if a decision is ever questioned.
Voting checklist
- Identify the resolution type each motion needs before the meeting
- Circulate motions with the notice (nothing decided off-agenda)
- Confirm a quorum before transacting business
- Check who is financial and entitled to vote
- Collect valid proxies within the deadline
- For special resolutions, count by unit entitlement and confirm 25% or less against
- Record the result of every motion in the minutes
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This guide is general information for NSW strata committees, not legal advice. Resolutions and voting are governed by the Strata Schemes Management Act 2015 (including section 5 and Schedule 1); always confirm current requirements with NSW Fair Trading (nsw.gov.au). OneStrata is record-keeping and management software for small to medium size strata schemes; it is not a licensed strata managing agent and never holds your funds.
Frequently asked questions
What is the difference between an ordinary and a special resolution?
An ordinary resolution needs a simple majority of the votes cast. A special resolution needs at least 75% in favour (no more than 25% against, counted by unit entitlement) and is required for things like changing by-laws.
How is a special resolution calculated in NSW?
It passes if no more than 25% of the votes cast are against it, measured by unit entitlement on a poll. Abstentions do not count as votes.
What is a unanimous resolution?
A resolution passed at a properly convened general meeting with no vote cast against it (section 5), required for fundamental decisions such as dealing with common property.
Can I vote if I owe levies?
No. An unfinancial owner cannot vote on ordinary or special resolutions, only on a unanimous resolution. Pay your levies before the meeting to keep your vote.