The Victorian government has convened an independent expert panel on 13 June (Friday) to review the Owners Corporation Act, including commissions and payment schemes in strata developments.
In its announcement, the government stated that the panel “will examine unethical owners’ corporations’ management conduct, including dishonest business practices, unfair contracts, conflicts of interest, and inappropriate commissions or ‘kickbacks.'”
Victoria’s Minister for Consumer Affairs Nick Staikos said the expert panel aims to ensure that legislative reforms installed in 2021 are “strengthened and improved even further” for residents living in apartments and other strata properties. According to government data, one in four Victorians lives in property managed by an owners’ corporation.
A consultation will be held with the Victorian community later this year to look into issues of lot owners, such as hardship arrangements, voting requirements, and the collective sale of owners’ corporations. The provisions on short-stay accommodations in strata developments are also part of the review.
The panel will be chaired by former Minister for Consumer Affairs Marsha Thomson, alongside two members who have yet to be announced. Its final report is expected to be released by December 2025.
Earlier in February, the New South Wales (NSW) government enforced new strata transparency rules, mandating detailed disclosures of insurance quotes, including commissions and broker fees.
The actions by both state governments followed an ABC Australia report that alleged that strata management company Netstrata, through its wholly-owned insurance arm Strata Insurance Services, had charged apartment owners brokerage fees three times the usual rate. The report also said that the firm received kickbacks from contractors and suppliers using strata funds across New South Wales.
