Insurance commissions in NSW strata are under intense scrutiny. Should they be banned? Reformed? Better disclosed? Or better managed?
This special 90-minute panel brought together leading voices from the NSW strata and insurance sectors for a robust, respectful debate on where things stand right now and where they should go next.
With perspectives spanning advocacy, regulation, insurance and frontline strata management, the panel’s lively discussion highlighted a sector grappling with competing priorities:
- transparency,
- consumer outcomes,
- business sustainability and
- professional standards.
NSW: Insurance commissions in strata – a live panel debate | Wade McKenzie, SCA (NSW); Tyrone Shandiman, ACIL; Paul Keating, Strata Community Insurance; Leanne Habib, Premium Strata; and Hugh McCormack, McCormacks Strata Management – Mar 2026
NSW strata insurance commissions panel positions
Where did each panellist sit on the issue of insurance commissions and reform?
| Panellist | Position | Key focus |
|---|---|---|
| Wade McKenzie (SCA NSW) | Supports moving away from commissions | Simplify the model, remove perceived conflicts and create a level playing field. Emphasises clearer fee structures and improving consumer understanding. |
| Tyrone Shandiman (ACIL) | Strongly supports reform and removal of commissions | Commissions create inherent conflicts that strata managers can manage through disclosure alone. Focus on fiduciary duty, stronger regulation and separating remuneration from advice. |
| Leanne Habib (Premium Strata) | Opposes a blanket ban; supports reform | Supports consumer choice and stronger conflict management. Favours structural changes, such as limiting delegated authority, rather than removing commissions altogether. Also flags the risk of unintended cost impacts for consumers. |
| Hugh McCormack (McCormacks Strata Management) | Supports moving away from commissions | Experience transitioning to a fee-for-service model. Emphasises clear client communication and transparency around how costs shift between insurance and management fees. |
| Paul Keating (Strata Community Insurance) | Supports maintaining choice and competition | Cautions against over-regulation and highlights the complexity of the broader insurance ecosystem, including brokers, insurers and federal regulatory settings. |
A sector divided on the path forward
One of the clearest themes from the discussion was that while there is broad agreement on the need for reform, there is no consensus on how that reform should look.
Some panellists strongly supported moving away from commissions. They said commissions create an inherent conflict of interest, disclosure alone does not resolve conflict, and removing commissions can simplify decision making and help rebuild trust.
Other panellists said commissions can still be a legitimate and workable part of the industry when managed correctly. They pointed out that commissions help offset strata management fees, support business sustainability, and can be transparently disclosed and controlled.
This divide reflects a broader tension across the sector, between eliminating conflicts and managing them effectively.
Disclosure vs informed consent
A key point of contention was whether the current disclosure regime goes far enough.
While recent NSW reforms require detailed breakdowns of insurance quotes, several panellists questioned whether volunteer committees have the expertise to interpret complex disclosures, whether those documents are actually read and understood, or whether they create a “tick-the-box” approach to compliance.
As one perspective highlighted, it is entirely possible to present a fully disclosed, but still poor, insurance outcome if the decision-making process relies too heavily on trust in the strata manager. The deeper issue is whether disclosure equals transparency or just the appearance of it?
Fiduciary duty and conflict of interest
The concept of fiduciary duty sat at the centre of the debate.
Some panellists argued that strata managers cannot fulfil their fiduciary obligations while receiving commissions, conflicts in this context are too difficult to manage in practice, and the only effective solution is removal.
The panel also suggested that conflicts exist across many industries and can be managed through better structure and governance. They pointed to practical solutions such as limiting delegated authority, separating advice from facilitation, and strengthening enforcement of existing rules rather than introducing blanket bans.
The big question: Will banning commissions reduce costs for owners?
A major area of disagreement was whether banning commissions would leave consumers better off.
Supporters of reform argued that removing commissions:
- should reduce insurance costs
- creates a clearer, more transparent pricing structure
- aligns remuneration with service delivery
- a one-in, one-out example was mentioned
Opponents warned of unintended consequences:
- strata management fees would likely increase to replace lost revenue
- brokers may still retain commissions unless reforms extend further
- and consumers could end up paying in different ways rather than less
Overall, attendees were reminded that removing one part of the remuneration chain does not necessarily reduce costs in the system.
Consumer choice and business models
Another key theme was consumer choice and market diversity. Some panellists said different business models should coexist so that consumers can choose between fee-for-service and commission-based arrangements. Others cautioned that not all options operate with the same level of fairness or transparency, and that some models may disadvantage consumers.
There was also discussion around vertical integration, with differing views on whether integrated service models enhance efficiency and value, or introduce additional conflicts and complexity.
Trust, professionalism and the future of the industry
The conversation also reflected on the broader reputation of the strata sector, particularly following recent media scrutiny.
Panellists acknowledged that trust has been challenged in recent years, with a minority of poor practices impacting perception across the industry. Rebuilding confidence will require not just compliance, but a stronger focus on professionalism, transparency and consistent service delivery.
There was also concern about the profession’s long-term sustainability. Increasing regulatory burden, rising expectations and tight margins are placing pressure on businesses and individuals alike. Without change, the sector may face a shortage of experienced strata managers and a decline in service quality.
What happens next? For now, we wait
While the panel did not reach consensus, it made one thing clear: change is coming and for now, we are all waiting to hear from the NSW Government what that looks like.
With the NSW Productivity and Equality Commission reviewing the issue and government decisions pending, the sector is preparing for a potential shift in how it manages remuneration, transparency, and accountability. The direction taken will have long-term implications for business models, consumer outcomes and the future of the profession.
Practical takeaways
For strata managers
| Key focus area | What this means in practice |
|---|---|
| Disclosure is not enough | The panel also reinforced that disclosure documents do not automatically create informed consent. As committees often rely heavily on their strata manager’s recommendation, the way the manager gives advice and guides decisions can matter more than the paperwork alone. |
| Fiduciary duty and conflicts remain central | The debate made clear that some believe conflicts can be managed through structure and process. In contrast, others argue they must be removed entirely, for example, banning commissions. From a legal perspective, strata managers avoid situations in which their personal interests conflict with their duty to the owners corporation. |
| Reconsider your role in insurance decisions | A key practical shift discussed is that strata managers should facilitate, not advise, on insurance. Brokers should provide advice, and decision-making should sit with the owners corporation. |
| Simplify communication with clients | Whether operating under a commission or fee-for-service model, managers must clearly explain how remuneration works, what services they are delivering, and what choices are available. |
| Review pricing and sustainability | Are strata services underpriced for the workload and responsibility? It was suggested that managers reassess portfolio sizes, fee structures, and whether their business has long term sustainability. |
| Lead with transparency, not just compliance | The strongest message is to not just meet legislative requirements, but actively build trust through openness and education. |
For strata business owners
| Key focus area | What this means in practice |
|---|---|
| Prepare for multiple regulatory outcomes | Businesses should be planning for all scenarios rather than waiting for a final decision. Reform could range from enhanced disclosure to partial or full bans on commissions. |
| Understand the full supply chain impact | A removal of strata commissions does not remove commissions from across the broader insurance supply chain. Margins may still be retained by brokers and insurers, creating a risk to consumers of cost shifting rather than cost reduction. |
| Reassess your revenue model now | If commissions are reduced or removed, that income will likely shift into more visible fees. Some clients may not be happy about this, so managers will need to communicate clearly and show their value behind their pricing. |
| Invest in people and retention | The industry is facing challenges attracting and retaining talent, with increasing workloads and complexity. Employers should focus on sustainable portfolios, competitive remuneration and clear career pathways. |
| Differentiate on value, not price | Competing on low headline fees is unlikely to be sustainable. Strong businesses will clearly articulate their value, price appropriately and focus on long-term client relationships. |
| Stay flexible in your business model | The future may include fee-for-service, commission-based, hybrid or integrated models. Adaptability and clear communication of that model will be critical. |
The bottom line
The NSW strata sector is at a turning point.
What came through clearly in this panel is that the conversation about insurance commissions is no longer only about remuneration. It has become a broader discussion about trust, professionalism and the long-term sustainability of the strata management model.
While opinions differ on whether commissions should be removed or better managed, there is strong alignment on the underlying issues. Transparency must go beyond compliance. Disclosure needs to be meaningful, understood and supported by clear communication, not buried in complex documentation.
Trust also sits at the centre of the debate. Owners and committees rely heavily on strata managers to guide critical financial decisions, particularly around insurance. Where that trust weakens, whether through poor practice or perception, the entire system comes under pressure. Rebuilding that trust will require consistent behaviour, clearer boundaries and a stronger focus on acting in the best interests of the owners corporation at all times.
At the same time, the discussion highlighted a growing concern about sustainability. The current pricing structures in many parts of the industry do not reflect the increasing complexity, compliance burden and risk carried by strata managers. Any reform, whether it involves commissions or not, will need to address how the industry is funded and how services are delivered in a way that is both fair and viable.
What happens next will depend on regulatory decisions, but the direction is already clear. Expectations are rising, scrutiny is increasing and business models are evolving.
The businesses that succeed will not wait for regulation to force change. They will take the opportunity to review how they operate, communicate more openly with clients, and adopt structures that prioritise transparency, sustainability and long term trust.
In doing so, they will not only respond to reform, they will help shape the future of the strata sector.
This post appears in Strata News #784.
Wade McKenzie Strata Community Association (NSW) E: enquiries.nsw@strata.community P: 02 9492 8200
Tyrone Shandiman Australian Consumer Insurance Lobby E: info@acilobby.org.au P: 07 3185 5256
Paul Keating Strata Community Insurance E: myenquiry@scinsure.com.au
Leanne Habib Premium Strata E: info@premiumstrata.com.au P: 02 9281 6440
Hugh McCormack McCormacks Strata Management E: Hugh.McCormack@mccormacks.com.au P: 1300 991 825
