Consumer groups have welcomed NSW inquiry recommendations that would prohibit commission payments for strata managers and insurance brokers providing services to the sector. 

Owners Corporation Network of Australia MD David Glover says the state Productivity and Equality Commission findings confirm long-standing concerns and the group is calling on the government to adopt the recommendations in full. 

“The commission has made it clear: disclosure alone is not enough. The only effective solution is to get rid of conflicted remuneration altogether,” he said. 

As reported in a Breaking News bulletin earlier today, the commission’s report was released this morning after the state government last year asked it to examine banning commissions. 

Financial Rights Legal Centre director of casework Alexandra Kelly says conflicts of interest have plagued the sector for years and the problem goes beyond strata managers. 

“Other players in this nested doll of self-interest and conflicts of interest include insurance brokers, who have played their own role in delivering poor outcomes for strata owners,” she said. 

“The PEC report rightly points out that also restricting those commissions would be beneficial for consumers – and we strongly agree.”  

Australian Consumers Insurance Lobby chair Tyrone Shandiman says the proposed bans are a critical step towards improving transparency and ensuring decisions are made in the best interests of lot owners. 

But he warns certain company arrangements may still fall outside the scope of the reforms.  

“While we support the proposed changes, we remain concerned about potential loopholes that could allow conflicted outcomes to persist,” he said. 

“It will be critical during the legislative process to ensure these gaps are properly addressed, so the reforms operate as intended and do not inadvertently leave room for alternative conflicted remuneration structures.”