22/05/2026
A question I keep being asked by prospects: "Your competitor's quote also says no commissions. Why are you better?"
[Deep breathe.]
The pattern I keep seeing in the market is this.
Some agents don't take commissions in the way their quotes describe. They don't need to. Where a strata group has an ownership interest in an insurance broker, the broker collects a "broker's fee" from the owners corporation when the policy is placed. That fee flows to a related body corporate of the strata managing agent, same ownership group, different legal entity,
different invoice.
In my view, that's structurally misleading even where each line of disclosure is technically compliant.
Section 60 of the Strata Schemes Management Act 2015 requires disclosure of commissions and training services. Subsections (2A)–(2D) require written notice before a contract with a connected person. Section 57(3A) requires a general meeting resolution for off-agreement commissions. Conflicts of interest are prohibited under Schedule 1, section 11 of the Property and Stock Agents Regulation 2022.
To be clear: commissions are lawful today where disclosed and approved. Some businesses rely on them. My view is the industry should be moving away from commissions altogether, but until then, the disclosure standards around them need to be better.
The gap is this. The standard "Notice to Engage" often reads with headings like "Benefits to Property Owners" and language like "your managing agent receives no direct payments." A reference to a "broker's fee" with the amount left for later. Connections buried in bullet points designed to be skimmed.
Every line technically compliant. Together, in my view, structured to make sure the committee doesn't ask the next question.
The next question is: where does the broker's fee actually go?
That this is a real regulatory concern, not just my view, is visible in the enforcement record. On 15 May 2025, Southern Cross Strata Management Pty Ltd gave an enforceable undertaking to NSW Fair Trading for contraventions of section 60 and paid $40,000 into the NSW Consumer Law Fund. The undertaking is on the public register.
For Bettr Strata, the position is simple and written into our agency agreement.
No commissions. No related entities taking fees. No ownership stakes in brokers, in suppliers, or in any other service provider to the schemes we manage. The insurance market is quoted independently. The owners corporation decides. If there is no fee disclosed, there is no fee.
That should be the floor for the industry. Right now, it is the exception.
The structural answer is plain-language disclosure that an owner without a law degree can read: how much, paid to whom, with what relationship to the agent.
Until the industry insists on that as the standard, committees will keep being told there are no commissions when the money is just
taking a longer route to the same destination.
JM
Founder & Managing Director