States react to strata allegations, back national probe
The Queensland and Victorian governments have expressed concern at strata management problems highlighted by Four Corners this week, while NSW says it would support a national inquiry.
NSW introduced a bill to parliament last month to toughen legislation after issues at residential strata properties were highlighted in an ABC investigation earlier this year. This Monday’s Four Corners program pointed to wider insurance transparency issues and conflicts of interest in the sector.
Queensland Attorney-General and Justice Minister Yvette D’Ath says more people are living in community title schemes and the industry will continue growing.
“That is why I was very concerned to hear of these trends in the strata industry in NSW and Victoria via the Four Corners program,” she said.
“I think it is appropriate that we continue to monitor the situation in other states, and we continue to listen to stakeholders and members of the community.
“I encourage them to come forward if they have information about similar conduct in Queensland.”
The state’s Body Corporate Commissioner is best placed to investigate any instances of the same conduct in Queensland, she says.
A Victorian government spokesperson says Owners Corporation Act reforms in 2021 strengthened manager accountability requirements, and a state housing statement is introducing mandatory training and licensing for professionals including owners’ corporation managers.
“We will also undertake a public review of the 2021 amendments to ensure residents are getting the protections they deserve,” the spokesperson told insuranceNEWS.com.au.
Current rules include that a manager must not make improper use of their position to gain an advantage for themselves or any other person, and managers must disclose any beneficial relationships with suppliers of goods or services and any commission, payment or other benefit they receive.
The timing and scope of the 2021 reform review is yet to be determined.
NSW’s proposed strata amendment bill aims to end “secret kickbacks on insurance policies and [weed] out bad players”. The government, which plans to impose higher penalties and greater disclosure obligations on strata managing agents, is supportive of a national focus.
“The NSW government would be keen to work with the Commonwealth on some kind of national inquiry or investigation,” Housing Minister Rose Jackson said this week.
Queensland would support and contribute to an Australian Competition and Consumer Commission inquiry if the federal government pursues one.