Consumer Advocates Urge NSW Government to Hold Firm on Strata Commission Ban

The Owners Corporation Network (OCN) and Australian Consumers Insurance Lobby Inc. (ACIL) have issued a joint call for the NSW Government to stay the course on banning strata insurance commissions, warning that to backtrack now would set a dangerous precedent and reward years of unethical industry conduct.

The call comes in response to a recent industry commentary raising concerns that the reforms could threaten industry stability. But consumer advocates say those concerns are being overblown by vested interests seeking to delay or dilute long-overdue reform.

The proposed ban is not about destroying an industry – it is about ending a culture of conflicted payments and replacing it with one that rewards transparency and integrity. Businesses that already operate without commissions will no longer be undercut by those profiting through hidden fees and conflicted relationships. This reform will finally create a level playing field where lot owners can make informed decisions and ethical businesses are not penalised for doing the right thing.

Karen Stiles, Policy Director of OCN, said:

“The Government’s own investigations have exposed extensive misconduct in strata insurance. These practices have cost lot owners dearly – in trust, transparency, and inflated premiums. The proposed ban on commissions is a vital step toward restoring integrity in the system. We cannot allow commercial interests to undermine consumer protections.”

Tyrone Shandiman, Chairperson of ACIL, added:

“The problems in strata insurance are not isolated incidents – they’re the result of systemic, unethical behaviour that has gone unchecked for too long. There must be consequences. If an industry can profit through poor conduct and then lobby its way out of reform, it sends the message that the risk was worth it. That cannot be the legacy of this Government’s reform agenda.”

The organisations also cautioned against relying on industry-driven surveys and commentary that may distort the true picture of consumer harm.

“We urge the Government to listen to the voices of lot owners, not just those profiting from the status quo,” Stiles said. “This is a once-in-a-generation opportunity to build a fairer system. The Government must follow through.