This article is about the recent announcement of a review of remuneration structures by the NSW Productivity and Equality Commission.
The Strata Community Association NSW has expressed its support for the recent announcement of a review of remuneration structures by the NSW Productivity and Equality Commission.
This review presents an opportunity for further input and consultation, paving the way for increased transparency within the strata sector.
The NSW Minister for Better Regulation and Fair Trading, the Honourable Anoulack Chanthivong, has tasked the NSW Productivity and Equality Commission to undertake a review of the market impacts of prohibiting strata managing agents from receiving insurance commissions.
Our sector has been aware of the government’s intention to review insurance placement remuneration practices, and we welcome the Minister’s announcement as an opportunity for further input and consultation, said Robert Anderson, President of SCA NSW.
We note the Minister’s comments that any unintended consequences from a move away from remuneration practices must be properly considered and examined.
We believe any changes must be evidence-based and data-driven because of the potentially significant impacts on the financial and operational structure of the strata insurance market and the long-term sustainability of the strata sector, Mr Anderson said.
The NSW Government has introduced several tranches of reforms aimed at increasing transparency and disclosure requirements arising from the 2021 Statutory Review of Strata Laws.
As of February 3 this year, new laws require strata managers to:
- disclose any connections with suppliers and developers, including the nature of those relationships
- provide detailed breakdowns of insurance quotes, including commissions, broker fees and government charges such as the Emergency Services Levy
- report in real time if any new connections or interests arise during their appointment.
SCA NSW remains committed to working collaboratively with the NSW Government and the Commission to ensure that any future reforms strengthen consumer protections without undermining the economic viability of the sector.
We look forward to contributing to a review process that is balanced, informed, and aligned with the needs of more than 1.2 million people living in strata across the state.
SCA Australasia
This post appears in Strata News #755.
Have a question or something to add to the article? Leave a comment below.
Read next:
- NAT: Who’s Paying What? Unraveling Strata Insurance Commissions with John Trowbridge
- NAT: Strata Insurance Commissions. Where do you stand?
- Nat: Strata commission during the insurance renewal process
Visit our Strata Managers OR NSW Strata Legislation.
Are you not sure about some of the strata terms used in this article? Take a look at our NSW Strata Glossary to help with your understanding.
After a free PDF of this article? Log into your existing LookUpStrata Account to download the printable file. Not a member? Simple – join for free on our Registration page.
Leave a Reply