Labor lines up Victorian strata commissions ban
Victoria’s Labor government says it will ban strata managers from taking commissions or payments that influence purchases of insurance, repairs and other services.
It adds brokers’ commissions “will be examined too, so managers can’t be paid through the back door”.
And it plans to set up an owners’ corporations taskforce inside Consumer Affairs Victoria with powers to monitor and enforce the new rules.
“If you’re paying strata fees, you deserve a manager who works for you – not one pocketing a kickback,” Consumer Affairs Minister Tim Richardson said.
The government – which faces an election on November 28 – said earlier this year it would further analyse commission payments and other benefits paid to strata managers after an expert panel recommended their prohibition.
The panel’s report also said to “avoid unintended impacts on insurance brokers, the ban should not prohibit brokers from receiving commissions”.
Nine News has reported that the Liberals also intend to ban strata insurance commissions.
In March, a NSW Productivity and Equality Commission report recommended banning strata managers in that state from accepting commissions and restricting supplier intermediaries including insurance brokers from receiving commissions for related work.
NSW Fair Trading Minister Anoulack Chanthivong told parliament last month the government was considering the findings and would continue to examine potential impacts on owners, strata managers and the broader industry.
“We can all agree that a regulatory environment that stops strata managers from being incentivised to act in their own interests rather than in the best interests of owners is important reform, and the government continues to consider it,” he said.
“The government also needs to make sure that any unintended consequences of the ban on commissions, particularly those that could adversely affect strata owners, are properly considered and examined.”
The next NSW election will be on March 13.