This article discusses transparency in strata management by explaining what a major national report reveals about entrenched conflicts of interest and why disclosure alone has failed to rebuild trust.
Conflicts of interest have become one of the most confronting and widely discussed issues in the strata sector. Media investigations, regulatory attention, and growing owner awareness have brought long-standing industry practices under intense scrutiny. This national webinar, featuring Dr Nicole Johnston from Strata Knowledge, sits squarely within that moment.
In this session, Nicole unpacks the findings of her major research report, At the Crossroads: Addressing Pervasive Conflicts of Interest in Strata Management, which examines how common business practices across the strata management industry can conflict with the legal and ethical duties owed to owners corporations.
Rather than focusing on isolated misconduct, the discussion explores how conflicts of interest have become embedded in industry structures over decades, and why disclosure alone has failed to restore trust.
NAT: Conflicts of interest in strata – insights from the ‘At the Crossroads’ report | Dr Nicole Johnston, Strata Knowledge – February 2026
Why this conversation matters now
The webinar opens by placing conflicts of interest in their broader historical and regulatory context. Concerns about commissions, developer relationships, and supplier influence are not new. However, 2024 and 2025 marked a turning point, with sustained media attention and increased regulatory focus bringing these issues into the open.
As Dr Nicole explains, strata management is particularly vulnerable to conflicts of interest due to its complex legal framework, reliance on volunteer committees, and the high level of trust placed in managing agents to navigate compliance, finances, and supplier relationships on behalf of owners.
This combination creates a power imbalance that can be easily exploited, often without owners fully understanding how or why it is happening.
What the research examined
Drawing on extensive qualitative research, including reviews of strata management agreements, company websites, in-depth interviews with senior strata managers, and engagement sessions with lot owners, the report identifies recurring patterns across the industry.
The webinar walks through how these findings were gathered and why they matter, helping viewers understand that the conclusions are evidence-based rather than anecdotal.
Key conflict of interest themes discussed
Rather than listing every example in detail, the session groups conflicts of interest into several recurring themes that will be familiar to many strata stakeholders.
A major focus is insurance commissions, including how they are commonly used to subsidise low management fees, and how this creates misaligned incentives. The discussion highlights issues such as cross-subsidisation between schemes, confusion around broker appointments, and the limited understanding many owners have about how commission money is actually used.
Another significant theme is developer consulting and pre-registration work, where strata managers may provide services at little or no cost in exchange for future appointments or revenue streams. The session explores how these arrangements can compromise independence, particularly when defects, levy setting, or governance structures are involved.
The webinar also addresses affiliated and vertically integrated service models, where strata managers have financial or personal links to suppliers such as insurance brokers, maintenance providers, or consultants. While often disclosed, these relationships raise questions about whether owners are truly receiving independent advice.
Additional discussion focuses on staff remuneration models, particularly the use of Schedule B or additional service fees tied to employee incentives, and how this can encourage over-servicing or overcharging if not carefully controlled.
Why disclosure is not enough
One of the most important insights from the session is the limitation of disclosure as a regulatory tool. Nicole explains why simply telling owners about a conflict does not remove it, and why psychological, informational, and power imbalances mean disclosure often creates an illusion of transparency rather than genuine understanding.
This helps explain why many owners report ongoing distrust, even where disclosure requirements are technically met.
What this means for owners, committees, and managers
The webinar does not position conflicts of interest as a problem caused by a few bad actors. Instead, it frames them as a systemic issue that affects trust, decision-making, and long-term sustainability across the sector.
For owners and committees, the discussion highlights why it can be so difficult to identify conflicts, ask the right questions, or assess whether advice is truly independent.
For strata managers, it acknowledges the commercial pressures created by long-standing pricing models, while also pointing to emerging alternatives that prioritise transparency and fee-for-service structures.
Looking ahead
As the sector moves into 2026, this session provides valuable context for understanding why further reform is being debated nationally, and why voluntary change alone may not be enough to address entrenched conflicts of interest.
Rather than offering quick fixes, the conversation encourages viewers to rethink how strata management is structured, priced, and governed, and what meaningful transparency should actually look like.
If you want a deeper understanding of why conflicts of interest remain such a persistent issue in strata, and what may need to change to restore confidence and trust, this is a session well worth watching in full.
Dr Nicole Johnston Strata Knowledge E: hello@strataknowledge.com P: +61 478 775 766
This post appears in Strata News #778.
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Read next:- NAT: Strata management in a changing environment: what’s ahead in 2026
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- NSW review of strata insurance commissions. Will commissions be banned in 2026?
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