Strata Penalty Applications: When Rules Get Ignored (And What You Can Do)

Let’s be real—living in a strata complex can be great, but it’s not always smooth sailing. You’ve got shared walls, common spaces, and rules that everyone agrees to follow. But what happens when someone keeps ignoring those rules?

If you’re here, chances are you’re dealing with a neighbour who’s pushing the boundaries—or maybe flat-out stomping on them. You’ve talked to them, sent emails, maybe even looped in the strata manager... and still nothing. That’s when you start looking into penalty applications under strata law.

Let’s walk through what that actually means—no jargon, no legal mumbo jumbo. Just the stuff you actually need to know.

So, What’s a Penalty Application?

Basically, it’s a formal complaint you can make (through the owners corporation) to get a penalty issued against someone who’s breaking the strata by-laws.

Let’s say someone keeps parking in your assigned spot, even after being told not to. Or maybe they’re throwing loud parties every weekend, even after the committee has asked them to tone it down. A penalty application is the legal route to get that behaviour dealt with, properly.

But—and this is important—you can’t just file one yourself as an individual owner or tenant. It has to come from the owners corporation (which is just a fancy term for all the owners in the building, acting as a group).

A Real Example: Parking Where They Shouldn’t

Picture this: You’ve got your designated car space, and every few days someone else is parked in it. Maybe it’s a neighbour. Maybe it’s their friend. Either way, your spot’s not available when you need it.

You talk to them—nothing changes. You complain to the strata manager—a warning is sent. Still happening.

At this point, the owners corporation can send out a formal notice to comply. If that gets ignored? The next step is filing a penalty application with NCAT (that’s the NSW Civil and Administrative Tribunal).

If the Tribunal finds the by-law’s been breached, they can fine the offender. First time? Up to $1,100. If they keep doing it after that? The fine can double.

Okay, But What’s the Actual Process?

Here’s how it usually plays out:

1. You raise the issue to the strata committee or manager
2. The committee investigates—they might talk to both sides, check CCTV, gather any reports
3. If they agree it’s a real issue, they’ll issue a notice to comply
4. If that’s ignored? They can file a penalty application with NCAT
5. NCAT reviews everything and makes a decision. If they’re convinced the by-law was broken, they issue a fine.

And that’s where a strata lawyer really helps—because if the process isn’t followed properly, the whole thing can get thrown out. You need to tick all the boxes: correct notice, solid evidence, clear breach.

What Kinds of Breaches Can Lead to a Penalty?

Almost anything that goes against the by-laws, really. The most common ones we see include:

• Noise complaints (late-night parties, barking dogs, loud TVs)
• Parking violations (wrong spots, blocking others)
• Unauthorised renovations or changes to common property
• Using common areas in ways that aren’t allowed
• Dumping rubbish where it shouldn’t go
• Keeping pets without approval (if your building has restrictions)

Some breaches are small, and a simple chat can fix them. But when it keeps happening, and everyone’s patience wears thin—that’s when penalty applications start making sense.

What Does NCAT Actually Look At?

NCAT isn’t there to take sides—they’re looking at facts. Did the breach happen? Was the person warned? Is there enough evidence?

Some of the things they consider:

• Was a proper notice issued? (This part has to be spot-on)

• Did the person have a chance to fix things?

• Is there proof of the breach? Emails, noise logs, photos, witness statements—all of it helps.

You don’t need a lawyer to file a penalty application, but honestly? Having one makes it a lot easier. Strata lawyers know exactly what NCAT needs to see. They’ll make sure you’re not missing anything that could sink your case.

What It’s Not

Let’s clear up a few common misunderstandings:

• You can’t file a penalty app just because you’re annoyed

There has to be an actual breach of a by-law. Disliking someone isn’t enough (sadly!).

• This isn’t a criminal court

NCAT is civil—it’s more about resolving disputes than punishing people. No one’s going to jail.

• It’s not automatic

Even if someone’s clearly in the wrong, you’ve still got to follow the steps. No shortcuts.

How to Avoid All This in the First Place

Here’s a little secret: most people don’t want to cause drama. Sometimes they just don’t realise they’re doing the wrong thing, or they feel attacked and dig in their heels.

So before things get legal, try:

• Having a calm conversation

• Sending a friendly reminder

• Working through your strata manager

• Asking your committee to mediate

But if you’ve done all that and nothing’s changed—then yes, penalty applications are there for a reason. And they work best when you’ve got the right guidance.

Final Word: You Don’t Have to Tolerate Repeat Offenders

Living in a strata scheme means living with other people. And sure, that takes a bit of compromise. But there’s a line—and when someone keeps stepping over it, you do have options.

If you’re fed up, frustrated, or just unsure about what to do next, talk to a lawyer who actually gets how strata law works. Not just the rules—but the real-life messiness that comes with it.

Because no one should feel stuck in their own home.