Victoria’s Strata Commission Debate Puts Transparency Back in Focus

The panel’s review of the Owners Corporations Act recommended that managers be prohibited from receiving commissions, rewards or other financial benefits connected with their duties, except through clearly specified fees for service. It also supported a more detailed invoice transparency model for insurance-related costs, designed to show owners where money is going and make it easier to compare competing arrangements.

For Victorian apartment owners, the key issue is not simply whether commissions exist, but whether they are clearly understood, properly disclosed and aligned with the best interests of the owners corporation. Where insurance is arranged through multiple parties, the total premium can include insurer charges, broker remuneration, manager payments, administration fees and taxes. Without clear line-item disclosure, committees may struggle to know whether they are receiving value or merely approving a familiar renewal pathway.

The government has indicated it supports stronger regulation in principle, but wants more analysis before imposing a ban. Its caution reflects a genuine policy tension. Consumer advocates argue that conflicted remuneration can distort decision-making and erode trust. Industry participants warn that removing commissions without a workable replacement may push costs into direct management fees or reduce access to advice, particularly for smaller schemes.

That debate matters nationally because Victoria is not acting in isolation. New South Wales has already been testing reforms around strata manager remuneration, while consumer groups continue to push for broader rules across the insurance supply chain. For owners corporations, the direction of travel is clear: insurance procurement is becoming more scrutinised, and committees will be expected to ask better questions before renewals are approved.

Practical steps should start well before the next annual general meeting. Committees should request a full breakdown of all remuneration connected with their policy, confirm who is advising the scheme, ask whether alternative quotes were obtained, and document why the chosen policy provides suitable value. They should also check that sums insured remain current, especially where construction costs, defects or major building works may have changed the risk profile.

The reform also highlights the value of experienced brokers who can explain coverage, exclusions, excesses and market appetite in plain English. Transparency should not be treated as a compliance burden; it is a practical tool for controlling premiums, strengthening trust and improving insurance decisions.

For lot owners concerned about rising levies, the lesson is to stay engaged, read insurance papers carefully and push for meaningful strata insurance comparison rather than accepting opaque renewals. Whether Victoria ultimately bans commissions or tightens disclosure, owners corporations that demand clarity now will be better prepared for the next phase of reform.