VIC: Can we pay our broker a fixed fee instead of commission?

Question: Can an owners corporation negotiate a fixed broker fee instead of paying insurance commission?

Our owners corporation uses an independent insurance broker who receives a 20% commission ($3,900) plus a $1,600 fee. Is it possible to negotiate a fixed fee instead of paying a commission?

Answer: Fees and commissions are negotiable, and an owners corporation is free to choose which insurance broker it uses.

Yes. Fees and commissions are negotiable, but importantly, an owners corporation is free to choose which insurance broker or provider it wants to use.

There is nothing that requires you to use a particular broker or accept their proposed fee or commission structure. Different brokers operate under different models. Some charge a fixed fee with no commission, while others charge commissions, fees, or a combination of both.

You are entitled to negotiate with your current broker, ask them to move to a fixed-fee arrangement, or approach another broker if you believe their remuneration is too high.

Ultimately, it is your owners corporation’s choice who you engage and what commercial terms you are prepared to accept.

This post appears in the November 2026 edition of The VIC Strata Magazine.

Tyrone Shandiman
Strata Insurance Solutions
E: tshandiman@iaa.net.au
P: 1300 554 165

This information is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Shandit Pty Ltd T/as Strata Insurance Solutions strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances. Shandit Pty Ltd T/As Strata Insurance Solutions is a Corporate Authorised Representative (No. 404246) of Insurance Advisenent Australia AFSL No 240549, ABN 15 003 886 687.