Published on March 23, 2026
A new proposal aimed at overhauling the current payment system for strata management in New South Wales is gaining traction, with advocates arguing it could save apartment owners a staggering $333 million annually. This potential reform comes as the New South Wales government considers a historic ban on the controversial practice of allowing strata managers to receive commissions for insurance and other services.
Currently, many apartment owners are burdened resulting from the commission structure ingrained in strata management. Strata managers, who are responsible for the administration and management of apartment buildings, often earn significant commissions on insurance placements and related service contracts. Critics argue that this creates a conflict of interest, leading to unnecessary increases in housing costs for residents.
The government’s proposal seeks to increase transparency and promote fairer practices within the strata management industry. a ban on these commission-based payments, proponents believe that it would not only reduce costs for owners but also encourage more competitive pricing and better service quality among suppliers.
However, the idea has been met with fierce resistance from strata managers, many of whom have taken “high offence” at the notion of banning commissions. They argue that such a measure could destabilize the industry and lead to a decline in service standards. Strata management representatives contend that commissions incentivize quality and efficiency, with managers negotiating better deals on behalf of owners.
Proponents of the ban, including tenant advocacy groups and some members of the government, argue that the current system disproportionately benefits strata managers while disadvantaging apartment owners. They emphasize that no other industry operates on a commission model in quite the same way, suggesting it creates undue financial pressure on those living in strata-titled properties.
The debate over the proposed ban has sparked widespread discussion among residents, with many apartment owners expressing support for the initiative. “We’re tired of paying inflated prices for basic services because of a system that benefits the managers more than us,” said one resident, highlighting the frustrations felt in apartment communities.
As the New South Wales government prepares to hold consultations on the proposed overhaul, the outcome remains uncertain. If passed, this reform could fundamentally reshape the relationship between strata managers and apartment owners, aiming to create a more equitable system that prioritizes the financial wellbeing of residents over commission-based interests. The discussions surrounding this issue are set to continue, and the final decision could have lasting implications for the entire strata management landscape in the state.