Ban Strata Commissions

Ban Strata Commissions

Securing strata insurance is becoming increasingly difficult for many schemes with insurance companies refusing cover or lifting premiums for a range of reasons like having a defects-report or having a retail tenant. Costs are skyrocketing so it is important that strata managers and insurance brokers are doing all they can to get owners the best deals possible. But the law allows them to take huge commissions from insurers, despite growing concerns that commissions are leading them to limit searches to insurers who pay good commissions or even – as seen in a recent Four Corners exposé – hide offers of lower premiums from owners. The Owners’ Corporation Network and the Australian Competition and Consumer Commission say the conflict of interest is so great, strata commissions should be banned. Last week the government introduced legislation to strengthen disclosure requirements, enforcement powers and penalties. While I welcome greater enforcement and penalties, I raised concerns that new disclosure requirements could help entrench the practice of taking commissions. I called on the government to ban strata commissions and in reply the minister said that Fair Trading will consult on how that could be done. My speech > HERE.

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