Farm Insurance Online :: News
SHARE

Share this news item!

Debate Intensifies Over Proposed NSW Strata Commission Ban

Consumer Advocates and Industry Leaders Clash Over Reforms

Debate Intensifies Over Proposed NSW Strata Commission Ban?w=400
The New South Wales (NSW) government's proposal to ban commissions on strata insurance has ignited a contentious debate between consumer advocacy groups and industry leaders.
This reform aims to eliminate potential conflicts of interest and enhance transparency within the strata management sector.

Consumer organizations, including the Owners Corporation Network (OCN) and the Australian Consumers Insurance Lobby Inc (ACIL), have expressed strong support for the ban. They argue that removing commission-based remuneration will address inherent conflicts where strata managers might prioritize financial incentives over the best interests of property owners. These groups advocate for alternative compensation models, such as fixed fees, to ensure clarity and fairness in pricing structures.

Conversely, industry representatives have raised concerns about the financial viability of strata management businesses under the proposed changes. Bobby Lehane, CEO of the PICA Group, warned that the sector could face challenges similar to those experienced by the aged care industry, where declining profitability led to service deterioration and eventual government intervention. He emphasized that strata management requires a certain level of profitability to sustain operations and deliver quality services to clients.

The debate underscores the delicate balance between ensuring consumer protection and maintaining a stable, functional industry. Proponents of the ban argue that transparency and the elimination of conflicts of interest are paramount, while opponents caution against unintended consequences that could destabilize the sector.

For strata property owners and managers, this ongoing discussion highlights the importance of staying informed about regulatory changes that may impact the management and insurance of their properties. Engaging with reputable, transparent service providers and advocating for fair practices will be crucial in navigating the evolving landscape of strata management in NSW.

As the government continues to review the proposed reforms, stakeholders from all sides are encouraged to participate in consultations to ensure that any changes implemented serve the best interests of both consumers and the industry at large.

Published:Friday, 10th Oct 2025
Source: Paige Estritori

Share this news item:

Insurance News

QBE Faces Legal Action Over Misleading Discount Practices
QBE Faces Legal Action Over Misleading Discount Practices
10 Oct 2025: Paige Estritori
The Australian Securities and Investments Commission (ASIC) has initiated legal proceedings against QBE Insurance, alleging that the insurer misled more than 500,000 customers regarding promised discounts on various insurance products between July 2017 and September 2022. This action underscores the regulator's commitment to ensuring transparency and fairness within the insurance sector. - read more
Debate Intensifies Over Proposed NSW Strata Commission Ban
Debate Intensifies Over Proposed NSW Strata Commission Ban
10 Oct 2025: Paige Estritori
The New South Wales (NSW) government's proposal to ban commissions on strata insurance has ignited a contentious debate between consumer advocacy groups and industry leaders. This reform aims to eliminate potential conflicts of interest and enhance transparency within the strata management sector. - read more
Steadfast Group's Strata Insurance Practices Under Investigation
Steadfast Group's Strata Insurance Practices Under Investigation
10 Oct 2025: Paige Estritori
Steadfast Group, Australia's largest strata insurance broker, is currently under scrutiny following allegations that it misled customers by not disclosing more affordable insurance options from competitors. This situation has prompted the Australian Competition and Consumer Commission (ACCC) to advocate for a ban on commissions within the strata insurance market, citing concerns over undisclosed payments that may be inflating costs for apartment owners. - read more
Jailed Broker Misuses Client Funds for Personal Gain
Jailed Broker Misuses Client Funds for Personal Gain
08 Oct 2025: Paige Estritori
In a significant breach of trust, New Zealand insurance broker in Murray McClune has been sentenced to three years and seven months in prison for embezzling $NZ1.7 million ($1.5 million) from two elderly couples, as reported by the Financial Markets Authority. McClune, a registered financial adviser during 2016-2018, exploited his long-term relationship with his victims by offering fraudulent investment opportunities through his business, Insurance Plus. - read more
icare Under Investigation for Workers’ Compensation Underpayments
icare Under Investigation for Workers’ Compensation Underpayments
07 Oct 2025: Paige Estritori
NSW state insurer, icare, has uncovered approximately 9,400 workers' compensation claims that might have been underpaid due to omitted inflation adjustments. The identification of these potential discrepancies is part of a wider industry review initiated by the State Insurance Regulatory Authority (SIRA). - read more


Farm Insurance Articles

Custom Farm Insurance: Tailoring the Perfect Policy for Your Agricultural Needs
Custom Farm Insurance: Tailoring the Perfect Policy for Your Agricultural Needs
Welcome to the world of farm insurance, where no two policies are the same, just as no two farms mirror each other in operations and risks. As a farmer, you are acutely aware that your agricultural endeavors bring a unique set of challenges and needs. Recognizing this diversity is the first step in protecting your livelihood. - read more
Understanding the Coverage: What Your Farm Insurance Should Include
Understanding the Coverage: What Your Farm Insurance Should Include
The serene morning mists settling over green pastures and the peaceful clucking of poultry might paint an idyllic picture of farm life, but seasoned farmers know that this lifestyle comes with its own set of risks and uncertainties. In the world of agriculture, each new day could bring events that threaten your way of life and the heart of your business. This is where farm insurance becomes not just important, but essential. - read more
Unpacking the Fine Print: Common Misunderstandings in Farm Insurance Policies
Unpacking the Fine Print: Common Misunderstandings in Farm Insurance Policies
Welcome to our discussion on farm insurance, a crucial subject for every Australian farmer. Whether you're seasoned in agricultural ventures or just starting out, the world of insurance can often seem daunting and complex. - read more
Risk Mitigation: Best Practices for Rural Farmers
Risk Mitigation: Best Practices for Rural Farmers
Risk mitigation is a strategy used to prepare for and lessen the effects of potential risks faced by rural farmers. It involves identifying potential threats and taking proactive steps to minimize their impact. - read more
The Rural Farmer’s Handbook to Affordable Farm Insurance
The Rural Farmer’s Handbook to Affordable Farm Insurance
As a rural farmer, protecting your livelihood should be a top priority. Farm insurance is crucial because it safeguards your investment and income against unforeseen events such as natural disasters, accidents, and theft. - read more


Farm Type:
Postcode:

All quotes are provided free (via our secure server) and without obligation. We respect your privacy.

Knowledgebase
Copayment:
A fixed amount you pay for a covered healthcare service, usually when you receive the service.