From 3 February 2025, NSW strata managers have to disclose much more about who they're connected to, what commissions they earn, and how insurance is being quoted. The aim is simple — owners should be able to see what's going on behind the scenes.
Before a strata manager is appointed
Before being appointed to your scheme, the strata manager must disclose:
- Any connections with suppliers they routinely use — and the nature of the relationship
- Whether they have given advice to the building developer about strata plans or community land scheme plans in the last 2 years
During the appointment
Real-time disclosures
If the strata manager becomes aware of any new connection or interest related to your scheme (for example, becoming connected to a service provider, or buying property in the scheme), they must write to owners as soon as practicable.
Written notice before related-supplier contracts
Before entering into a contract on behalf of the owners corporation where the manager is using a related supplier, they must give the owners corporation written notice.
Approval needed for commissions outside the contract
If the manager wants to receive a commission or training service that isn't already part of the management agreement, they need the owners corporation to approve it at a meeting — with a written explanation showing why approval is in the scheme's interest, including the dollar amount.
More AGM disclosures
At every AGM, the strata manager must now disclose:
- Any current connections with suppliers or the developer
- Any such connections from the previous 12 months
- (As before) commissions and training services received in the past 12 months and expected in the next 12
Insurance quotes — no more hiding the commission
Strata insurance quotes from your manager must now be clearly itemised, showing:
- The base premium
- GST
- Any commission and broker fee amounts — and who they're paid to
And there's a new ban: a strata manager can't take a commission on insurance if the owners corporation got the quote and arranged payment independently, without the manager's help.
What this means for your scheme
This was the reform that hit closest to home for strata managers. We support it. Transparency on commissions and supplier connections is exactly how an owners corporation should be able to operate — owners deserve to see the numbers.
At Townhouse Strata, our standard practice has always been to disclose commissions openly and let the owners decide. The new rules formalise what we already do.
If you've ever been unsure whether your current manager is being upfront about insurance commissions or supplier connections, the new rules give you a clear test: are they disclosing these things in writing, in their AGM materials, and on a real-time basis? If not, that's a red flag worth raising at the next meeting — or worth bringing up with us.
What to ask your strata manager
- "Can I see your last 12 months of commission disclosures?"
- "Are you connected to any of the suppliers we use? In what way?"
- "Can you provide an itemised insurance quote showing the base premium, GST and your commission separately?"
- "Have you advised our developer in the past 2 years?"
If a manager can't answer these or pushes back, that's information in itself.
Source
NSW Government — Guide to strata law changes for strata committees and owners (1 April 2026): nsw.gov.au/housing-and-construction/strata/guide-to-strata-law-changes-for-strata-committees-and-owners