NSW Urged to Push Through Strata Commission Ban

Strata owner and consumer groups have urged the NSW government to press ahead with the removal of strata manager insurance commissions.

The proposed reforms are needed to restore trust and transparency, the Owners Corporation Network and the Australian Consumers Insurance Lobby say.

A letter to Better Regulation and Fair Trading Minister Anoulack Chanthivong and NSW Fair Trading commissioner Natasha Mann argues banning the commissions will level the playing field.

“Consumers will be able to compare fees more clearly and make informed choices based on value and service,” the letter says. “While we acknowledge the transition may present challenges for some businesses, the current model is fundamentally broken.”

Strata management company PICA Group last week warned profitability in the sector is falling and a sudden removal of the commissions could pose an “existential threat”, and lead to worse outcomes for property owners.

Read article: https://www.insurancenews.com.au/local/nsw-urged-to-push-through-strata-commission-ban