Strata Commissions Review

The NSW Productivity and Equality Commission has reviewed the market impacts of prohibiting strata managers from accepting commissions.

An aerial photo of Newcastle CBD

In June 2025, the NSW Productivity and Equality Commission was requested by the Minister for Better Regulation and Fair Trading to review the market impacts of prohibiting strata managing agents from accepting commissions and other conflicted remuneration, and to provide an evidence base to support government decision-making.

On 27 February 2026, the Commissioner provided the review’s report to the Minister. The report found that moving the NSW strata management sector from a commission-based model to a fee-for-service model can simplify remuneration structures, improve competition and service quality, increase trust, and lower costs. Over the next 15 years, this could generate more than $300 million in net benefits for NSW.

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Strata commissions review - NSW Productivity and Equality Commission

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Strata commissions review - NSW Productivity and Equality Commission

More than $300 million could be saved by ending commissions for strata managers.

Strata is fast becoming the norm, not the exception.

Nearly half of all homes in Sydney will be strata dwellings by 2041.

Our report, Strata Commissions Review, The Market Impacts of Prohibiting Conflicted Payments, finds such commissions can create conflicts of interest, make costs hard to understand, and they can undermine trust between owners and managers.

We have detailed four options for government to consider that address these issues and deliver savings for owners and renters.

These are 1) phase out insurance commissions for strata managers, 2) prohibit strata managers from accepting any commissions, 3) restrict intermediary commissions, and four, prohibit percentage-based commissions, but permit a regulated flat fee payment.

Strata managers play a critical role in keeping apartment buildings running well.

But the way they're paid really matters.

We need to support a more transparent, competitive, and sustainable strata sector as New South Wales cities continue to grow up.

It all comes down to fairness and transparency.

When owners can clearly see what they're paying for and why, then trust in strata improves and communities are stronger.

You can read the full report on our website.

Thank you.

[MUSIC]

 

This report examines four options – that the NSW Government:

  1. supports industry to phase out insurance commissions for strata managers
  2. prohibits strata managers in NSW from accepting any commissions
  3. prohibits strata managers from accepting any commissions, and restricts intermediary commissions
  4. prohibits strata managers from accepting percentage-based commissions but permits a regulated flat fee payment. 

Download

Download Final report - Strata commissions review PDF 2.12MB
Download Terms of Reference - Strata Commissions and Conflicted Remuneration PDF 160.44KB
Download Issues paper - Strata Commissions Review PDF 1.36MB

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Type: Review
Author: NSW Productivity and Equality Commission
Publication Date: 24 March 2026

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Business and economyHousing and constructionProductivityRegulationStrataHousing
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