On behalf of people from the Heathcote electorate and across New South Wales, I speak in debate on an important piece of legislation, the Strata Managing Agents Legislation Amendment Bill 2024. New South Wales is home to over 85,000 strata schemes, housing more than 1.2 million residents. As our State grows and our Government continues to work towards delivering affordable and trustworthy homes, strata living will play an increasingly vital role in housing our communities. Medium- and high‑density housing is essential to our State's future. That is why this Government is committed to strengthening the strata industry, ensuring that home owners, who make the biggest investment in their lives, and renters alike have confidence in the buildings in which they live. Trust and transparency must form the foundation of this growing sector.
Owners' corporations, representing home owners within strata schemes, make critical decisions about the management and upkeep of their properties. Many owners' corporations turn to strata managing agents to help oversee services, manage finances and handle records. Those agents play a crucial role in ensuring that strata schemes run smoothy and they have a duty to act in the best interests of the owners' corporations that they serve. Unfortunately, there have been concerns about some agents misusing their authority, putting their own interests above those of the people they are meant to serve. We cannot allow such misconduct to erode trust in the system. That is why the Strata Managing Agents Legislation Amendment Bill 2024 is so important. Many residents have raised such issues with me before.
The bill is focused on strengthening disclosure obligations for strata managing agents, which will increase transparency and allow owners' corporations to make informed decisions about their properties. They deserve nothing less. Some of the key reforms include stronger disclosure obligations to ensure that owners' corporations are fully informed when agents receive commissions or provide training services. Agents will be required to provide detailed documentation explaining why certain decisions are in the owners' corporations' best interests and whether they have any conflicts of interest.
Agents must provide itemised insurance quotes, allowing owners to clearly see any commissions or fees paid out. The changes will empower owners' corporations to make better choices when managing their strata schemes and ensure that agents are held accountable for their actions. Another vital reform involves limiting when agents can receive commissions. Currently, agents may charge commissions for insurance work even when they did not perform any work. That is both unfair and misaligned with consumer expectations. The bill addresses that by ensuring that agents can only be paid for work they have actually completed, giving owners' corporations more control over how their funds are spent.
The penalty amounts under current strata laws have not been updated for many years. They are often significantly lower than the commissions agents can earn through misconduct. As a result, penalties can be viewed as just a cost of doing business. The Strata Managing Agents Legislation Amendment Bill 2024 will substantially increase penalties. Fines for corporations could reach up to $55,000, while individuals could face penalties of up to $11,000. On‑the‑spot fines for breaches will also double to ensure stronger deterrence. Tougher penalties send a clear message: The Government has zero tolerance for agent misconduct. It priorities fairness, consumer protection and accountability. In addition to those reforms, the bill strengthens NSW Fair Trading's powers to swiftly and effectively address misconduct by agents. By broadening enforceable undertaking powers, Fair Trading will have more flexibility to deal with noncompliance.
In conclusion, the bill demonstrates the Minns Labor Government's unwavering commitment to supporting strata living as a viable and trustworthy option for the people of New South Wales. By strengthening disclosure requirements, improving transparency and ensuring fairness and accountability in the strata industry, we are ensuring that New South Wales residents can trust the agents managing their homes. The reforms will ensure that, as our State grows, so too will our confidence in strata living, delivering homes that are both affordable and secure. I commend the bill to the House. I thank the Minister, his team and the department on behalf of residents in Heathcote who have called for better regulation and access to the information they need to make informed decisions.
