The NSW Productivity and Equality Commission is to review market impacts of prohibiting strata managing agents from accepting commissions or what is described as ‘other conflicted payments’.
The move comes at the request of the Minister for Better Regulation and Fair Trading Anoulack Chanthivong.
The minister said via Sunday’s announcement that charging of commissions in the strata industry had led to concerns about inflated costs for owners corporations, a reduction in competition, erosion of trust between owners and strata managing agents and the compromised ability of owners corporations to make informed financial decisions.
The Productivity and Equality Commission is to look into whether prohibiting the payment of commissions and other conflicted payments to strata managing agents will lead to better value for money, higher quality services, lower costs and simpler arrangements for strata owners.
Potential impacts on strata managing agents’ business models are to also be considered, including effects on competition.
Report due in Feb 2026
The Commission is to prepare an issues paper for public consultation before delivering a report to the Minister by 27 February 2026.
The government says the commission will consider case studies, consulting with owners and other stakeholders.
Full Terms of Reference into the review are available here.
More than 87.000 strata schemes are said to be in place across the state covering most apartments, townhouses, villas and duplexes.
Minister Chanthivong says with more than 1.2 million people living in strata schemes, a regulatory environment is needed that ‘stops strata managing agents from being incentivised to act in their own interests rather than in the best interests of strata owners’.
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