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ARTICLE · 21 MAY 2026

The Extend­ed 6 Year Lim­i­ta­tion Peri­od For SSMA Sec­tion 106 Stra­ta Claims Is Not Retrospective

A recent NSW District Court decision has clarified that the extension of the limitation period for strata claims from 2 to 6 years does not apply retrospectively to claims that had already expired before the legislative change took effect on 1 July 2025. The case also raises important questions about when owners become aware of their loss for limitation purposes, potentially departing from established precedent.

AustraliaLitigation, Mediation & Arbitration

In the recent deci­sion of John Goubran & Asso­ciates Pty Ltd ACN 070 974 819 v The Own­ers – Stra­ta Plan 57150 [2026] NSWDC 9 (Goubran) it was held that the lim­i­ta­tion peri­od which was amend­ed from 2 years to 6 years from 1 July 2025 under s106(6), is not ret­ro­spec­tive and does not extend the lim­i­ta­tion peri­od beyond 2 years where this for­mer lim­i­ta­tion peri­od was ‘extin­guished’ pri­or to the changes com­ing in.

The Dis­trict Court stat­ed that the change of the lim­i­ta­tion peri­od to 6 years was sub­ject to the pre­sump­tion against ret­ro­spec­tiv­i­ty ref­er­enced in Rod­way v R [1990] HCA 19. Note that ret­ro­spec­tiv­i­ty in this con­text, if it applied, would have the effect of re-enliven­ing a pre­vi­ous­ly extin­guished claim. Nev­er­the­less, this con­cept does not apply as the deci­sion was not a pro­ce­dur­al change. 

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For further information please contact:

Michael Byrnes, Partner
Phone: + 61 2 9233 5544
Email: [email protected]

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