The National Insurance Brokers Association (NIBA) has voiced support for the Victorian government’s planned overhaul of strata regulation but has drawn attention to the potential impact on consumers’ ability to access independent insurance advice under the proposed changes.
With Victoria moving to tighten oversight of the strata sector, NIBA has positioned itself as an active participant in the reform process, raising questions about how proposed measures might intersect with the existing federal regulatory framework that governs insurance brokers. NIBA CEO Richard Klipin acknowledged the government’s direction while flagging the need for careful calibration. “The Victorian government’s commitment to modernising the strata sector and strengthening accountability for strata managers is the right direction, but it is critical that reform remains targeted and proportionate,” Klipin said.
At the core of NIBA’s position is an argument that insurance brokers already operate under a substantial compliance regime. Brokers hold Australian Financial Services Licences, fall under Australian Securities and Investments Commission (ASIC) oversight, and are bound by the Insurance Brokers Code of Practice – a framework that NIBA says already covers remuneration disclosure, conflict management, and independent compliance oversight. The association’s concern is that state-level reform, if not carefully designed, could layer additional obligations onto a profession already subject to Commonwealth regulation, without delivering corresponding benefit to consumers.
NIBA has also pointed to the growing relevance of the issue. Approximately one in five Victorians currently reside in a home governed by an owners corporation, and that proportion is expected to rise as the state’s urban population grows. As strata living becomes more common, NIBA argues, access to independent risk advice becomes more – not less – important for owners corporation members navigating increasingly complex insurance decisions. The association said it intends to engage with the Victorian government and the Department of Government Services as further analysis of the reforms proceeds.
The government’s reform package stems from an independent expert panel review of the Owners Corporations Act 2006, which produced 51 recommendations spanning governance, consumer protection, and regulatory enforcement. Of those, the government accepted 17 in full, three in part, and 26 in principle. Three recommendations remain under consideration, and two were not supported. Legislation introduced to Parliament on June 3, 2026, represents the first stage of changes. It establishes a standardised hardship payment plan for owners corporation members who are unable to meet body corporate fee obligations – a measure the government flagged as a priority in response to broader cost-of-living pressures. The legislation also sets a 50% owner support threshold for collective legal action on non-monetary matters at the Magistrates’ Court or VCAT and amends the Subdivision Act 1988 to remove the previous requirement for unanimous owner agreement before subdivision plans could be changed. Consumer Affairs Minister Paul Edbrooke framed the changes in direct terms. “No one should be hounded over fees they simply can’t afford – so we’re putting a stop to it,” Edbrooke said. He also addressed conduct within the strata management industry, stating that managers accepting kickbacks or illegal commissions would be subject to the incoming enforcement regime.
Read next: NIBA backs TasInsure plan
The government has indicated that a second round of legislative changes is expected in 2026. Those measures are set to include a licensing scheme for owners corporation managers, broader enforcement powers for Consumer Affairs Victoria, and strengthened requirements around financial transparency and decision-making processes within strata schemes. Victoria has more than 500,000 strata-managed properties, a number that continues to rise. The introduction of a licensing scheme for managers and the expansion of Consumer Affairs Victoria’s regulatory reach are likely to alter the operating environment for insurance brokers working in the strata space, particularly where remuneration arrangements and disclosure obligations are concerned. NIBA’s early engagement with the reform process reflects the insurance industry’s stake in how those details are ultimately resolved. The association has signalled it will seek to ensure that the final design of the measures accounts for the existing federal framework governing brokers and does not create conditions that limit the advice available to strata property owners.
