9 OCTOBER 2023

“We welcome today’s announcement that NSW has appointed a Commissioner dedicated to Strata.

The appointment of a Strata Commissioner should lead to better coordinated, and transparent responses to the many challenges facing this growing housing sector,” Karen Stiles, Executive Director, Owners Corporation Network said.

“Right now, cost-of-living pressures are putting the spotlight on opaque market practices. Strata residents are facing an energy transition, sustainability demands, and rising costs of insurance to name just a few.

“Higher standards in the strata management industry, a more open and competitive market for all services, and stronger consumer protection will be just some of the achievements we’ll be looking for”, Ms. Stiles said.

“In the short term, there is an opportunity to build on the Strata Hub initiative with independent education, information, and support for Strata Committees.”

“There is no substitute for listening and direct dialog with strata residents – consumer participation is vital. We look forward to working with the Commissioner on key priorities to deliver value for money strata living”, she said.

Media Comment:
Karen Stiles
Executive Director, OCN

M:  0418 232 476 / E:  [email protected]

Further Background

  • In 2019, OCN’s State Election Campaign called for a Commissioner for Strata Living – Better Deal for Strata – Commissioner for Strata Living – Owners Corporation Network (ocn.org.au). This 1½ page statement explains the objectives and resource requirements of the Commissioner.  The NSW Labor Party promised to establish a Strata Commissioner.  This announcement fulfils that promise. NSW Labor’s surprise plan for a new strata commissioner brings relief (afr.com)
  • The number of schemes in NSW has now risen to over 85,000 – https://www.nsw.gov.au/housing-and-construction/strata/buying-a-strata-property. The strata sector is more complex, with mixed use buildings that involve both residential and commercial owners.  The size of buildings has also increased, and often involves multiple schemes in communities with complex shared facilities arrangements.
  • NSW had a Strata Commissioner until the 1990s. The position was abolished as part of major reforms.  Dispute adjudication moved to NCAT.  However, NCAT does not have a specialist strata list. It is regarded anecdotally as inconsistent and has become expensive to navigate.  This is an issue that requires investigation, possibly by the Law Reform Commission.
  • The market trends are toward horizontal integration, and consolidation of service providers – https://www.insurancenews.com.au/daily/johns-lyng-ups-stake-in-bright-duggan and https://www.minterellison.com/articles/minterellison-advises-the-johns-lyng-group-in-strategic-acquisitions#:~:text=The%20Johns%20Lyng%20Group%2C%20a,Australia%20and%20Link%20Fire%20Holdings
  • NSW had a Strata Commissioner until the 1990s. Dispute adjudication moved to NCAT.  However, NCAT does not have a specialist strata list.  It is regarded anecdotally as inconsistent and has become expensive to navigate.  This is an issue that requires investigation, possibly by the Law Reform Commission.