ICA Advocates for Reforms in Victoria's Strata Legislation

The ICA's recommendations focus on several key areas:

• Strengthening governance within owners corporations by improving transparency and accountability, combined with targeted education for committee members to address complex financial and insurance matters.
• Careful review of proposed licensing schemes for strata managers to ensure any new requirements are evidence-based, avoiding unnecessary costs or unintended effects.
• Full disclosure of payments to strata managers that could influence insurance product selection, with a thorough assessment of market impacts before considering a ban on commissions.
• Lowering the threshold for collective sales of strata properties to facilitate the renewal of older buildings, mirroring New South Wales's move to a 75% owner agreement.
• Introducing stronger enforcement mechanisms, such as public complaints registers, to hold owners corporations accountable for defects.

ICA Deputy CEO Kylie Macfarlane stated that as the number of residents in multi-unit buildings grows, managing the expenses linked to strata properties is becoming a more significant issue. She emphasized that effective reforms backed by proper compliance and enforcement are essential to de-risk strata complexes and deliver better outcomes for all stakeholders.

These proposed reforms aim to address the challenges faced by strata communities in Victoria, ensuring that residents have access to affordable and comprehensive insurance coverage while promoting better governance and maintenance practices within the sector.