I welcome the release of the Issues Paper by the NSW Productivity and Equality Commission (NSW PEC) today.
In August, I tasked the NSW PEC to undertake a review of the market impacts of prohibiting strata managing agents from accepting commissions or other conflicted payments.
The charging of commissions in the strata industry has led to concerns about inflated costs for owners corporations, a reduction in competition, erosion of trust between owners and strata managing agents and the compromised ability of owners corporations to make informed financial decisions.
The Issues Paper seeks feedback from strata communities, managers and other service providers to help inform a report putting forward recommendations for regulating commissions and other conflicted payments in the strata industry.
It's crucial that we ensure any unintended consequences from a ban on commissions - particularly those that could adversely affect strata owners - are properly considered and examined.
The work of NSW PEC will determine if a ban will lead to better value for money, higher quality services, lower costs and simpler arrangements for strata owners.
I encourage all interested parties to take part in the consultation process and provide their feedback.
