The Owners Corporation Network says it is disappointed the Victorian government has deferred an expert panel’s recommendation to ban strata commissions pending more analysis, but it will continue to press the issue.

Development MD Chris Irons says the panel’s report and response, released last week, marked “a first salvo” and the network looks forward to working with the government further on responses.

“OCN’s position is that those kinds of conflicted remuneration should be prohibited and hopefully that’s where this goes in due course,” he told insuranceNEWS.com.au. “The reality is that once you are taking a commission, you immediately put yourself in a position where you start to question who your client is, and the client is always the OC in this case.”

The report says owners’ corporation managers should be banned from receiving a financial benefit or reward for duties and functions, other than through fees for specified services.

But the state government has flagged concerns over market impacts and will undertake further analysis.

Consultancy Strata Savvy’s director, Kate Yeowart, says it is time to move on from commissions, and managers that do not accept the payments have been able to negotiate fees, providing greater clarity and transparency for owners.

“I think the government has, unfortunately, missed a great opportunity,” she said.

Related article: NSW inquiry calls for strata commissions ban

Ms Yeowart also calls for a focus on education for managers and owners, after NSW introduced committee training requirements.

Strata management company Pica Group – criticised in newspaper The Age for making a confidential submission to the review – says it had been open about its concerns over proposed changes to commissions and potential consumer and strata sector impacts.

“Our experience in NSW shows that when we offer both commission-based and fee for service options for strata insurance services, 86% of renewing or new schemes across our portfolio choose an arrangement where commission applies, rather than paying a separate fee for the work associated with insurance,” it said.

“We are concerned that removing this choice may leave consumers worse off.”

The National Insurance Brokers Association says it looks forward to working with the government on further analysis to ensure reforms deliver for consumers without reducing access to advice.

“The Victorian government’s commitment to modernising the strata sector and strengthening accountability for strata managers is the right direction, but it is critical that reform remains targeted and proportionate,” CEO Richard Klipin said.