A coalition of leading consumer advocacy associations has today called on Federal Treasurer, Hon Dr Jim Chalmers MP to initiate a government-directed public inquiry, led by the Australian Competition & Consumer Commission or the Productivity Commission, into the strata management industry. The coalition cites systemic harmful practices within the industry that compromise consumer rights and community expectations.
Noting recent media reports of unethical, questionable or unlawful practices, the groups urge a comprehensive examination of the industry’s governance, conflicted remuneration models, harmful financial hardship and debt recovery practices, and the adequacy of consumer protection mechanisms. It should shine a light on the significant financial and safety risks faced by consumers due to current industry shortcomings.
Proposed Scope of Inquiry
- Investigate practices within the strata management industry that are unethical and potentially unlawful, including assessing both the transparency of remuneration models and the adequacy of existing regulation.
- Evaluate the effectiveness of consumer protection mechanisms and the need for reform.
- Evaluate the role of industry bodies, and the adequacy of government oversight in enforcing legal and ethical standards.
- Focus on identifying and referring instances of unlawful activity for appropriate enforcement action, and ensure the compelling of evidence and protection of witnesses to facilitate thorough and effective oversight.
This action is necessary to safeguard the interests of millions of Australians currently living in strata-titled properties, and to protect the interests of future strata owners.
Read press release:> 20240910 Joint Media Release – Consumer Groups jointly call for Government Inquiry
