A landmark inquiry has recommended banning insurance commissions in New South Wales’ strata sector, with scope extending beyond strata managers to capture strata insurance brokers operating in the market.
The NSW Productivity and Equality Commission, tasked by the state government with examining remuneration arrangements across the strata industry, released its report in late March 2026 finding “a strong case” for moving beyond disclosure-based regulation to an outright ban on commissions. The commission estimated the change could deliver savings of approximately $333 million if fully implemented.
The recommendations target strata managers primarily, but the report explicitly addresses broker commissions, stating that there would be “further benefits from restricting commissions for third-party intermediaries like strata insurance brokers.” The commission noted that fee-for-service models already operate widely, and concluded that the benefits of removing commissions outweigh the costs in this context, arguing brokers would likely remain active in the market regardless of remuneration model.
Among the proposed strategies are regulating strata manager procurement processes and advocating for a federal government policy shift on broker commissions more broadly. A three-year transition period is proposed to allow existing contracts to roll into non-commission terms as they expire.
NSW Better Regulation and Fair Trading Minister Anoulack Chanthivong confirmed the government would “carefully consider” the findings, including potential impacts on brokers and the broader industry. No formal response has yet been delivered, but the direction of travel is clear.
The development follows changes already underway under the Strata Community Association NSW, which began phasing out insurance commissions from 1 January 2026 for new contracts. Together, these shifts are rewriting the operating model for brokers active in the strata market.
Navigating remuneration and regulatory change is exactly the kind of challenge Better Broker Network was built to help members work through. Talk to our team about how we support brokers as the landscape evolves.