In Short:
- From 1 January 2026, Strata Community Association NSW (SCA NSW) will begin a phased replacement of insurance commissions for strata managing agents.
- SCA (NSW) will spend significant time and resources supporting members, including an updated Agency Agreement delivered prior to 1 January 2026 for any members seeking to transition away early.
In what has been described as a ‘milestone moment in strata. Today, the Strata Community Association NSW (SCA NSW) announced that, starting on 1 January 2026, its members will begin a phased replacement of insurance commissions.
From 1 January 2026, new SCA (NSW) standard management contracts issued by SCA (NSW) members will not include an option to accept commissions on insurance products and SCA (NSW) members using their own management contracts will also not offer the option.
Strata Community Association (SCA) NSW President Robert Anderson said, “This is a milestone moment for strata.
“The decision to make this phased transition in relation to insurance commissions has not been made lightly, or quickly.
“Undertaking this reform is about delivering transparency, trust, and showing leadership.”
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Mr Anderson said, “For owners and committees, this reform will deliver transparency, accountability and pricing simplicity.
“For managers and their businesses, it will deliver certainty, business sustainability and improve trust and credibility with clients.”
“Strata managing agents should be proud to talk about the value they bring to consumers and why they should be paid to carry out these critical tasks in relation to strata insurance, and this reform will deliver on that.”
Where previously remuneration was received from commissions for the critical value strata managing agents provide as part of the insurance supply chain, moving forward, it will be replaced with a combination of fee-for-service for insurance and an increase in agreed services, in consultation with clients.
Independent research was commissioned by SCA (NSW) to support its decision-making, which has drawn from intensive engagement across the sector.
Mr Anderson said, “This reform continues the commitment that we started with the Strata Insurance Best Practice Disclosure Guide and will establish yet another benchmark for the sector.
“SCA (NSW) has been working hard to ensure a fair and sustainable future for strata communities across NSW.
“We know this transition may be challenging for some in the industry, however SCA (NSW) will be spending significant time and resources supporting members with training, resources and education throughout the transition, and with much more detail in the coming weeks.”
“Professionalism is at the heart of our sector. While we have seen many recent changes, SCA (NSW) has led the way for the strata sector with activities such as high-quality training and education, introducing the Professional Standards Scheme and introducing a Code of Ethics.”
Key dates and figures:
- 1 July 2024 – Strata Insurance Best Practice disclosure guide mandatory for members
- 1 July 2025 – SCA National Code of Ethics implemented.
- 1 January 2026 – SCA NSW – new contracts produced by SCA NSW member will not include insurance commissions.
- 17% of NSW Residents live in Strata, which is just under 1.5m people
- There are 91,346 strata schemes in NSW