The Minister for Better Regulation and Fair Trading has tasked the NSW Productivity and Equality Commission to undertake a review of the market impacts of prohibiting strata managing agents from accepting commissions or other conflicted payments.

In NSW there are more than 87,000 strata schemes, which include most apartments, townhouses, villas and duplexes.

The charging of commissions in the strata industry has led to concerns about inflated costs for owners corporations, a reduction in competition, erosion of trust between owners and strata managing agents and the compromised ability of owners corporations to make informed financial decisions.

The Productivity and Equality Commission will look into whether prohibiting the payment of commissions and other conflicted payments to strata managing agents will lead to better value for money, higher quality services, lower costs and simpler arrangements for strata owners.

The potential impacts on strata managing agents’ business models will also be considered, including effects on competition.

The Productivity and Equality Commission will consider case studies, consult with owners, stakeholders, and prepare an issues paper for public consultation before delivering a report to the Minister for Better Regulation and Fair Trading by February 27, 2026.

The full Terms of Reference into the review: The market impacts of prohibiting strata managers from accepting commissions and other conflicted remuneration are below.

For more information on recent strata reforms, please visit https://www.nsw.gov.au/housing-and-construction/strata/serving-on-a-committee/strata-laws

Minister for Better Regulation and Fair Trading Anoulack Chanthivong said:

“With more than 1.2 million people living in strata schemes in NSW, we need a regulatory environment that stops strata managing agents from being incentivised to act in their own interests rather than in the best interests of strata owners.

“We also need to make sure any unintended consequences from a ban on commissions – particularly those that could adversely affect strata owners - are properly considered and examined.

“This Productivity and Equality Commission will review the market impacts of prohibiting strata managing agents from accepting commissions, or other payments that could improperly influence their decisions when doing their job.”

NSW Property Services and Strata Commissioner Angus Abadee said:

“Since February 2025 the NSW Government has introduced reforms to enhance the accountability of strata managers to better protect owners.

“This review will ensure we continue to build on these reforms to ensure strata managers are acting in the best interests of consumers.”