Strata living has become a defining feature of Australia’s housing landscape. More than 4.2 million Australians, around 15 per cent of the population, now live in strata properties, and this number is expected to grow as cities continue to densify.
This makes the regulation and management of strata communities not just an insurance issue, but a broader housing and consumer policy concern. Governments and regulators are increasingly focused on how strata is governed, how costs are managed, and how owners and residents can access professional advice in a complex environment.
Within this context, insurance arrangements have emerged as a central focus. The regulation of the remuneration structures surrounding strata insurance has attracted the attention of policymakers with multiple states now examining how these remuneration structures impact transparency and consumer outcomes.
In New South Wales, the Productivity Commission has been tasked with investigating the impact of a potential ban on insurance commissions for strata managers, following earlier work led by the Department of Fair Trading.
The inquiry does not extend to insurance brokers, whose role is distinct and governed by financial services regulation and the Insurance Brokers Code of Practice. To support its engagement in the process, the National Insurance Brokers Association (NIBA) has assembled a reference group of strata-focused brokers to provide insights from practice and guide its advocacy throughout the review.
The debate has gained momentum following the Strata Community Association NSW’s announcement that its members will begin phasing out commissions on strata insurance from 1 January 2026. This decision has placed further focus on how strata services are priced and disclosed to owners’ corporations.
In Victoria the review of owners’ corporation legislation is already underway. While not the primary focus, as part of this review, the remuneration of strata managers will also be examined. NIBA has made a submission to the review, highlighting the importance of preserving access to professional insurance advice for owners’ corporations.
The ACT has also examined these issues through its Legislative Assembly’s Inquiry into the management of strata properties. NIBA contributed to this review, appearing before the Inquiry to emphasise the importance of access to professional insurance advice and to caution against reforms that could undermine consumer outcomes.
Across all three reviews, NIBA has emphasised the importance of transparency, advice, and advocacy for strata owners. It has underlined the distinct yet complementary roles that insurance brokers and strata managers play, and the need for reforms to recognise these differences. NIBA has also noted that advice and support are more important than ever as the number of people living in strata communities continues to grow.
Taken together, these reviews reflect a trend of state-based inquiries into the remuneration structures within the broader strata sector. NIBA will continue to engage constructively with governments to ensure that reforms strengthen, rather than diminish, the accessibility and quality of insurance advice available to strata communities.
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