A coalition of leading consumer advocacy associations has called on Federal Treasurer, Hon Dr Jim Chalmers MP to initiate a government-directed public inquiry, led by the Australian Competition and Consumer Commission or the Productivity Commission, into the strata management industry. The coalition cites systemic harmful practices within the industry that compromise consumer rights and community expectations.
Noting recent media reports of unethical, questionable or unlawful practices, the groups urge a
comprehensive examination of the industry’s governance, conflicted remuneration models, harmful financial hardship and debt recovery practices, and the adequacy of consumer protection mechanisms. It should shine a light on the significant financial and safety risks faced by consumers due to current industry shortcomings.
Proposed scope of inquiry
- Investigate practices within the strata management industry that are unethical and potentially
unlawful, including assessing both the transparency of remuneration models and the adequacy of existing regulation. - Evaluate the effectiveness of consumer protection mechanisms and the need for reform.
- Evaluate the role of industry bodies, and the adequacy of government oversight in enforcing legal and ethical standards.
- Focus on identifying and referring instances of unlawful activity for appropriate enforcement action, and ensure the compelling of evidence and protection of witnesses to facilitate thorough and effective oversight.
This action is necessary to safeguard the interests of millions of Australians currently living in strata-titled properties, and to protect the interests of future strata owners.
“We are witnessing an alarming trend in strata management practices that are not only unethical but potentially unlawful. It’s time for the government to step in and ensure that there is a robust framework protecting consumers who are currently at a disadvantage. The lack of transparency and accountability in the current system has left many of us vulnerable. We need a thorough inquiry that not only highlights these issues but also leads to substantial reforms.” Said Karen Stiles Owners Corporation Network of Australia.
