The NSW Productivity and Equality Commission released its report in March 2026, recommending that the NSW strata sector transition away from commission based remuneration, including insurance commissions, towards a fee for service model. The report recommends a three year transition period so that existing agency agreements and service contracts can move to non commission terms as they expire. At this stage, the report is a recommendation to Government only, and any changes would still need to be considered and implemented by the NSW Government.
The report follows a review requested by the Minister for Better Regulation and Fair Trading, Anoulack Chanthivong, in June 2025. The purpose of the review was to examine the market impacts of prohibiting strata managing agents from accepting commissions and other conflicted remuneration.
According to Minister Chanthivong, the government will review the findings, which propose reforms to commission structures and provide an evidence base to support government decision-making, in order to accurately assess impacts on owners, strata managers, and the industry.
“Strata managers play an important role in supporting apartment and commercial buildings across NSW, and it is critical that their remuneration arrangements align with the interests of owners corporations and apartment owners,” said Minister Chanthivong in a statement.
“The report highlights longstanding concerns about transparency, trust, and competition in the strata sector, and presents a range of options to address commissions and other conflicted payments, while seeking to protect consumers and improve outcomes for strata communities.”
The report outlines four possible options: that the NSW Government supports the industry to phase out insurance commissions for strata managers; prohibits strata managers in NSW from accepting any commissions; restricts intermediary commissions; and prohibits percentage-based commissions while permitting a regulated flat-fee payment.
The report also makes seven recommendations, including prohibiting conflicted remuneration; addressing supply chain conflicts; monitoring conflicted relationships and educating owners and managers; minimising impact through a gradual, three-year transition; supporting industry and owners to transition away from commissions; monitoring and evaluating changes; and revisiting burdensome regulations.
The report and the recommendations can be found here
SCA (NSW) has welcomed the report and its review of the market impacts of prohibiting conflicted payments.
“Last year, the SCA (NSW) Board resolved to support and encourage members to begin a phased replacement of insurance commissions for strata managing agents. This voluntary transition commenced on 1 January 2026,” said SCA (NSW) President, Mr. Robert Anderson, in a statement.
“Our sector has been aware of the Government's intention to review insurance remuneration practices for some time, and the Board’s decision was only taken after careful consideration and consultation. It reflects our ongoing commitment to raising professional standards, strengthening consumer trust, and delivering better outcomes for owners and residents living in strata communities.”
According to the Managing Director of The Strata Collective, Rod Smith, “Yesterday’s announcement provides helpful direction on the future of commissions in the strata sector. We welcome greater clarity for both owners and strata managers, and we look forward to working with each of our clients to explain the proposed changes and put in place fair, transparent arrangements for the future.”