NSW Strata Commission Changes: Potential Risks Remain

Consumer Groups Highlight Concerns Over Related-Party Financial Benefits

Potential Risks Persist Amid NSW Strata Commission Reforms?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

In a significant shift within New South Wales's strata industry, the Strata Community Association NSW has announced that strata managers will transition away from relying on insurance commissions.

This change, set to be phased in from next year, will see remuneration for insurance-related work shift to separate fee arrangements.

While this move aims to enhance transparency and align with consumer interests, some consumer groups have expressed concerns about potential risks that may persist.

The Australian Consumers Insurance Lobby (ACIL) has highlighted the possibility that strata managers could still receive financial benefits through related-party structures. Instances have been observed where strata managers own, or are closely associated with, insurance brokerage firms. Such arrangements could potentially circumvent the intended transparency of the new remuneration model.

ACIL emphasises the importance of vigilance to ensure that the savings from commission changes are genuinely passed on to lot owners. It is considered part of the strata manager's fiduciary duty to act in the best interests of the owners' corporation, which includes ensuring that any financial benefits derived from insurance arrangements are disclosed and appropriately managed.

To mitigate these risks, it is recommended that owners' corporations:

Conduct thorough due diligence when selecting strata managers and associated service providers.
Implement clear policies requiring full disclosure of any related-party relationships and financial benefits.
Engage independent audits to review financial arrangements and ensure compliance with the new remuneration structures.

By proactively addressing these concerns, owners' corporations can foster a more transparent and equitable strata management environment, ultimately benefiting all stakeholders involved.

Published:Monday, 22nd Dec 2025
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Insurance News

New Opportunities for Queensland Strata Owners to Lower Insurance Costs

22 Dec 2025: Paige Estritori

Strata property owners in North and Central Queensland have a new avenue to reduce their insurance premiums, thanks to recent regulatory updates to the Cyclone Reinsurance Pool effective from April 1, 2025. By undertaking approved cyclone mitigation activities, these owners can not only enhance the resilience of their properties but also benefit from significant cost savings on insurance. - read more

Poor Strata Governance in Victoria Leading to Higher Insurance Premiums

22 Dec 2025: Paige Estritori

The Insurance Council of Australia (ICA) has raised concerns over the impact of inadequate strata governance on insurance premiums for Victorian residents. In a recent submission to the Expert Panel Review of the Owners Corporations Act 2006, the ICA highlighted that building defects in residential apartments are costing Australians an estimated $1.3 billion annually. This financial burden is particularly affecting the one in five Victorians living in strata-titled properties. - read more

Potential Risks Persist Amid NSW Strata Commission Reforms

22 Dec 2025: Paige Estritori

In a significant shift within New South Wales's strata industry, the Strata Community Association NSW has announced that strata managers will transition away from relying on insurance commissions. This change, set to be phased in from next year, will see remuneration for insurance-related work shift to separate fee arrangements. While this move aims to enhance transparency and align with consumer interests, some consumer groups have expressed concerns about potential risks that may persist. - read more

Steadfast Group Halts Trading Amid Strata Insurance Controversy

14 Dec 2025: Paige Estritori

In September 2024, Steadfast Group, Australia's largest general insurance broker network, suspended trading on the Australian Stock Exchange (ASX) following serious allegations of misleading clients and failing to disclose commissions in its strata insurance operations. The company's share price plummeted by 6.14% to $5.96 after reports emerged suggesting that undisclosed financial arrangements between insurance companies, brokers, and strata managers were inflating insurance costs for property owners. - read more

Click for more Insurance News

Strata Insurance Articles

Key Factors That Affect Your Strata Insurance Premiums

Strata insurance is a specialized form of coverage tailored for property owners living in multi-unit complexes. Understanding its intricacies can be crucial for ensuring that all aspects of shared ownership and communal property responsibilities are adequately protected. - read more

Strata Insurance FAQs: Your Most Pressing Questions Answered

In Australia, strata insurance is a crucial part of property ownership, offering peace of mind and financial protection. It's essential for property owners to understand what strata insurance entails and why it's so important. - read more

When to Involve a Broker: Navigating Insurance Claims in Strata Properties

If you own a strata property, understanding your insurance is crucial. Strata insurance is a specific type of cover that protects shared and common property under a strata title or body corporate arrangement. This can include everything from the building itself to shared driveways, gardens, pools, or car parks. - read more

Understanding Strata Insurance: A Guide for Apartment Owners

Strata insurance is a specific type of insurance policy designed to cover common property and areas shared by owners within a strata-titled development, such as an apartment complex. This unique insurance is crucial for apartment owners as it ensures financial protection against unexpected events affecting the building structure and common facilities. It typically covers parts of the property like the building’s exterior, lobbies, and gardens. - read more

Knowledgebase

Public Liability Insurance:
A very broad term for insurance covering liability exposures for individuals and business owners. It provides broad coverage, generally including all exposures for property damage and bodily injury.