NSW: OC to restrict owner’s use of lot section

I live in a strata village with an internal loop access road. The OC is drafting a by-law to prevent owners of lots that border the access road from doing anything on their lot within a specified distance from the kerb, like an easement. Can they do that? Whether or not this is reasonable action to take, it seems that they are reverting this area back to common property and at the very least the lot areas should be recalculated and the strata fees reduced accordingly. What is the legal position here?  Thanks.