Politics · Australia · 9 hrs ago

Victorian Labor pledges to ban strata managers’ insurance kickbacks

Victorian Labor pledges to ban strata managers’ insurance kickbacks

Victorian Labor plans to ban commissions paid to strata managers for building insurance, repairs and other services.

The payments, often called kickbacks, are currently legal, although managers have had to disclose them since 2021.

They affect apartment, unit and townhouse owners, with more than 500,000 properties under strata management in Victoria.

Hidden commissions can increase owners’ costs and create a conflict between managers and the people they serve.

Victoria’s expert panel recommended a ban in 2025, and a New South Wales review also called for one.

Labor would create a Consumer Affairs taskforce to enforce the rules, after the agency issued four infringement notices and no prosecutions against owners’ corporations over the past decade.

The pledge is due to be announced ahead of Victoria’s November state election; Labor says it would also examine brokers’ commissions.

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What people are saying

Tim RichardsonVictorian Consumer Affairs Minister
If you’re paying strata fees, you deserve a manager who works for you – not one pocketing a kickback,
via SMH
We’re … putting a cop on the beat, so dodgy managers get caught,
via SMH
Adam PromnitzStrata Owners Alliance co-founder
All sides of politics need to get behind banning these perverse and ethically indefensible but unfortunately currently legal kickbacks,
via SMH
Nicole JohnstonSocio-legal researcher and former lawyer
Information can be disclosed yet incomprehensible, overwhelming, misleading, and simply not useful,
via SMH