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ICA Advocates for Overhaul of Victoria's Strata Legislation

Addressing Governance Issues to Mitigate Rising Insurance Costs

ICA Advocates for Overhaul of Victoria's Strata Legislation?w=400

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The Insurance Council of Australia (ICA) has recently called for significant reforms to Victoria's strata legislation, highlighting concerns that poor governance and deferred maintenance are contributing to increased insurance premiums for the state's strata property owners.
This appeal underscores the pressing need for legislative updates to enhance the management and maintenance of strata-titled properties.

In its submission to the Expert Panel Review of the Owners Corporations Act 2006, the ICA emphasised that building defects are costing Australians an estimated $1.3 billion annually. Many strata buildings are facing challenges in securing affordable insurance due to structural issues and inadequate risk management. The ICA's recommendations aim to address these challenges by proposing several key reforms.

One of the primary suggestions is to strengthen the governance structures within owners' corporations. This includes implementing mandatory training for committee members to ensure they possess the necessary skills and knowledge to manage strata schemes effectively. Enhanced governance is expected to lead to better decision-making processes, ultimately resulting in improved maintenance and risk management practices.

Another critical area of focus is the establishment of comprehensive maintenance plans. The ICA advocates for mandatory, long-term maintenance schedules that are regularly reviewed and updated. Such proactive planning is essential to prevent the accumulation of defects and to ensure that buildings remain in good condition, thereby reducing the likelihood of costly repairs and insurance claims.

Transparency in financial management is also a key component of the proposed reforms. The ICA recommends stricter financial reporting requirements for owners' corporations, including detailed budgets and regular audits. Increased transparency is intended to build trust among property owners and to ensure that funds are being allocated appropriately for maintenance and repairs.

Furthermore, the ICA suggests the introduction of a dispute resolution framework tailored specifically for strata communities. This framework would provide a clear and efficient process for resolving conflicts, thereby reducing the potential for prolonged disputes that can negatively impact the management and maintenance of strata properties.

By implementing these reforms, the ICA aims to create a more robust and transparent strata management system in Victoria. Improved governance and proactive maintenance are expected to enhance the overall quality of strata properties, making them more attractive to insurers and potentially leading to more competitive insurance premiums for property owners.

In conclusion, the ICA's call for reforms to Victoria's strata legislation highlights the critical link between effective governance, proactive maintenance, and insurance affordability. By addressing these areas, the proposed changes have the potential to significantly improve the living conditions for the one in five Victorians residing in strata-titled properties, while also ensuring the long-term sustainability of these communities.

Published:Monday, 6th Apr 2026
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

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