Reshaping Remuneration

In September 2025, SCA (NSW) announced one of the most significant reforms in its history: a phased replacement of insurance commissions from strata management contracts. The decision has attracted widespread media attention, earned praise from consumer advocates and legal experts, and prompted healthy debate across the insurance and property sectors.

For strata owners, managers, and policymakers, this marks a defining moment. The commission model has long been a feature of strata management in New South Wales. Replacing it with transparent, fee-for-service arrangements is a major change; however, one that SCA (NSW) believes is essential to strengthen trust, professionalism, and accountability across the industry.

SCA (NSW) has emphasised that this reform is not a reduction in revenue, but rather a replacement of where that revenue comes from. Strata managers undertake a significant amount of work in the insurance process on behalf of strata communities; from coordinating valuations, sourcing quotes, assessing coverage, managing renewals, processing claims, and communicating with owners and insurers.

These services remain vital and will continue to be delivered; the difference is that payment for these professional services will now occur transparently, through clearly defined management fees instead of commissions.

The reform comes at a time of increasing focus on strata insurance. Attention on remuneration practices and fee structures has created strong momentum for greater transparency and integrity. SCA (NSW)’s decision responds to this shift by demonstrating proactive leadership and a commitment to best practice across the sector.

The NSW Government has also signalled interest in legislative reform. The Commissioner for Fair Trading has indicated an intention to prohibit commission or broker fee sharing in future strata legislation. In parallel, the NSW Productivity and Equality Commission is conducting a review into commission practices, with findings due in early 2026.

SCA (NSW)’s decision positions the organisation ahead of the regulatory curve. Rather than waiting for reform to be imposed, the Association has taken the lead in reshaping practice and setting standards for its members.

From 1 January 2026, members are encouraged to begin a voluntary transition away from the current commissionbased model toward an equivalent fee structure, phased over three years as existing management agreements are renewed. This approach aligns with the NSW Government’s directive for the Productivity Commissioner to review the market impacts of prohibiting strata managing agents from accepting insurance commissions or other conflicted remuneration.

The final report is due by 27 February 2026, and no compliance or enforcement action will be taken against SCA (NSW) members until after its release.

Support for members includes dedicated webinars and information sessions, case studies from Strata Managers already operating without commissions, and targeted training programs on valuing time, structuring fees, and communicating effectively with clients. Members will also have access to industry data, insurance insights, and the expertise of insurance and broking professionals to help build confidence in new models.

The focus is on equipping managers with the tools to clearly demonstrate the value of their work, sustain their businesses, and strengthen trust with owners and committees. By leading training, consultation, and education throughout the transition, SCA (NSW) is ensuring that members are not left to navigate the change alone but instead can embrace it as an opportunity to modernise and professionalise their services.

SCA (NSW) President Robert Anderson said the Association’s position represents a balanced and responsible transition.

“Our focus is on supporting a well-paced shift that protects both businesses and the communities they serve,” he said. “This is about clarity, not cost-cutting.”

Following the release of the Commissioner’s report, SCA (NSW) will continue its consultation with members, government, and consumer groups to determine next steps. SCA (NSW) remains committed to guiding the industry toward a transparent, ethical, and sustainable remuneration framework that reinforces public confidence in strata management.