The Insurance Council of Australia (ICA) has recently unveiled a significant policy paper that puts forward 17 recommendations, all centered around enhancing the experiences and outcomes for consumers within strata complexes. Titled “Improving Consumer Outcomes for Strata Communities”, this report delves into crucial aspects that can have a far-reaching impact on the sector.
Among the key areas of focus are measures to make insurance more affordable for strata residents, along with strengthening building risk mitigation strategies to safeguard properties better. Additionally, improving fee transparency is high on the agenda. Notably, some of the principal proposals entail imposing stricter education requirements on strata managers. This would ensure that those managing these complexes are better equipped with the necessary knowledge and skills. There are also calls for better fee disclosure and improved land-use planning, with the aim of having properties constructed in safer locations, thereby reducing potential risks.
Moreover, the report emphasizes the need for updates to the national building code. It advocates for giving priority to building resilience, enhancing compliance during the design and construction phases, and ensuring that owners’ corporations enforce proper maintenance protocols. The sector is also set to witness changes due to new laws. Starting from July 2025, brokers and strata managers will need to obtain client consent to receive commissions as per the Corporations Act 2001. Meanwhile, in New South Wales, expanded disclosure requirements regarding commission fees for strata managers will come into effect in February 2025. These developments are likely to reshape the strata complex landscape and bring about a more consumer-friendly environment in the near future.
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