If you own a lot in a strata scheme, chances are you have heard something about insurance commissions over the past couple of years. It has been one of the most discussed topics in NSW strata management, and for good reason. As we explored in our recent piece on why owners change strata managers, transparency sits at the heart of the relationship between owners and their strata manager, and nowhere has that been more of a conversation than in how insurance commissions work.
The good news is that real progress has been made, but for our clients, that progress is more than 12 months ahead of the industry. Here is a quick rundown of where things currently stand.
How We Got Here: The February Report
In June 2025, the Minister for Better Regulation and Fair Trading asked the NSW Productivity and Equality Commission to look into the market impacts of prohibiting strata managing agents from accepting insurance commissions and other conflicted payments.
The Commission delivered its report on 27 February 2026, and its findings were encouraging. Moving NSW strata management from a commission-based model to a fee-for-service model has the potential to simplify how strata managers are paid, improve competition and service quality, build trust between owners and their managers, and deliver more than $300 million in net benefits for NSW over the next 15 years.
For context, commission arrangements have historically been embedded into insurance premiums, often at somewhere between 10% and 20% of the annual cost, without owners always knowing they were there. The report acknowledged that this made it difficult for owners to know whether their manager was recommending a particular insurer or broker because it was genuinely the best option, or because it was the most financially rewarding for them.
What Are We Waiting For?
It isn’t just frustrated owners who have identified the problem. The NSW Government has been actively working to address transparency gaps across the strata industry, and the reforms passed in early 2025 represent the most significant regulatory shift in years.
Under new strata laws that came into effect in February 2025, strata managers in NSW are now legally required to disclose any connections with suppliers and developers, provide detailed breakdowns of insurance quotes including all commissions and broker fees, and update owners corporations promptly if any new conflicts of interest arise during their appointment. Strata managers must also provide enhanced annual reports to owners corporations detailing any supplier and developer relationships.
NSW Fair Trading is enforcing these ongoing disclosure obligations with significant penalties — up to six figures — for those who fail to comply. As Minister for Better Regulation and Fair Trading Anoulack Chanthivong noted at the time: “Strata owners deserve clear, timely, and honest information from their managers.”
A third tranche of reforms is also underway, focused on developer accountability and financial hardship provisions. The regulatory direction is clear: the era of opaque strata management practices is coming to an end.
Being Decisive Early On
At Strata Choice, we have found this conversation energising rather than uncomfortable, because we had already made the decision to move to a commission-free model before the broader industry got there.
Back in 2024, we looked closely at the concerns being raised around commission-based arrangements and decided that a fee-for-service model was simply the right way to operate. So we moved. Here is a quick summary of our journey:
- September 2024, A Line in the Sand: We made the decision to move to a fee-for-service model, building a commission-free agency agreement and transitioning our clients to a fee-for-service model, negotiated directly and transparently.
- April 2025, Extending Our Team:Â We brought on a dedicated, full-time Insurance Services Manager to sit within our team and work directly for our clients on all things insurance.
- September 2025, SCA NSW Announcement: More than half of our portfolio had already moved across to commission-free agreements.
We are proud of moving early, not because it was easy, but because it meant our clients did not have to wait for the industry to catch up.
What a Commission-Free Agency Agreement Means for Your Building
Being commission-free is not just a contractual detail. It genuinely changes how we handle insurance on your behalf.
Because we have no financial ties to any insurer or broker, every recommendation we make is based entirely on what suits your building. You are never locked into a single provider, and you always have the final say.
Our Insurance Services Manager is a big part of how that works in practice. Rather than relying on a third-party broker to manage your insurance, we have someone in-house whose job is to liaise with insurers and brokers on your behalf, help you understand your options, coordinate renewals, manage claims when they arise, and work through any complex or technical insurance matters with you. Think of them as your building’s insurance advocate.
It is a level of support that most strata buildings simply do not have access to, and we think it makes a real difference. When the person handling your insurance is working for you rather than earning a cut from the outcome, the whole dynamic shifts in your favour.
Don’t Wait for the Industry to Catch Up
The Productivity Commission’s report is in. The industry is moving. Now it is a matter of watching what the government does next, and we will keep our clients informed as that picture becomes clearer.
In the meantime, if you have questions about how insurance is handled for your building, or if you would like to understand more about how our commission-free model works, we would love to chat.
Contact us today and discover why more than 28,000 owners across Sydney have already entrusted us with their most valuable asset.