The NSW strata regulator has warned of a “zero-tolerance” approach if owner-appointed managers do not comply with new laws requiring disclosure of commissions.

Strata and property services commissioner Angus Abadee says strata managers will face unannounced visits as part of regulatory blitzes.

“The thing we are focused on at the moment is commissions,” he told the Owners Corporation Network annual conference in Sydney today.  

“We’re in our third blitz since the reforms kicked off on February 3 and we’re finding that while most of the industry is complying with the rules, there are a number who still haven’t got the message and we’re taking a zero-tolerance approach with breaches of those types of offences.”

The new laws – part of a raft of reforms being introduced progressively – require strata managers to gain property owners’ approval for receipt of commissions or training services.

Mr Abadee says improving confidence in strata is vital, with half of the Greater Sydney population estimated to be living in multi-unit developments by 2040.

“It’s no longer a niche issue, it’s no longer an addendum to the conversations around planning and housing delivery. It is a key enabler that we need to get right,” he said.  

A strata and property services taskforce was set up in NSW Fair Trading last year and Mr Abadee says a new approach to enforcement should support higher standards.

Better Regulation and Fair Trading Minister Anoulack Chanthivong has asked the state Productivity and Equality Commission to review the market impacts of prohibiting strata managing agents from accepting commissions, with a report due in February.

Mr Chanthivong says the government wants to ensure the proposed reform delivers anticipated benefits without unintended consequences.

“The productivity commission will talk to all stakeholders and owners to create an issues paper for public consultation later this year,” he told the OCN conference. “It’s a really important reform and we want to get this right.”

Industry body Strata Community Association NSW said last month that its members will phase out commissions from the start of next year.