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ICA Advocates for Reforms in Victoria's Strata Legislation

Addressing Governance Issues to Mitigate Rising Insurance Costs

ICA Advocates for Reforms in Victoria's Strata Legislation?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

The Insurance Council of Australia (ICA) has called for significant reforms to Victoria's strata legislation, highlighting that poor governance and deferred maintenance are leading to increased insurance premiums for the one in five Victorians residing in strata-titled properties.
In a submission to the Expert Panel Review of the Owners Corporations Act 2006, the ICA emphasized that building defects are costing Australians an estimated $1.3 billion annually, with many strata buildings facing challenges in securing affordable insurance due to structural issues and inadequate risk management.

The ICA's recommendations focus on several key areas:

  • Strengthening governance within owners corporations by improving transparency and accountability, combined with targeted education for committee members to address complex financial and insurance matters.
  • Careful review of proposed licensing schemes for strata managers to ensure any new requirements are evidence-based, avoiding unnecessary costs or unintended effects.
  • Full disclosure of payments to strata managers that could influence insurance product selection, with a thorough assessment of market impacts before considering a ban on commissions.
  • Lowering the threshold for collective sales of strata properties to facilitate the renewal of older buildings, mirroring New South Wales's move to a 75% owner agreement.
  • Introducing stronger enforcement mechanisms, such as public complaints registers, to hold owners corporations accountable for defects.

ICA Deputy CEO Kylie Macfarlane stated that as the number of residents in multi-unit buildings grows, managing the expenses linked to strata properties is becoming a more significant issue. She emphasized that effective reforms backed by proper compliance and enforcement are essential to de-risk strata complexes and deliver better outcomes for all stakeholders.

These proposed reforms aim to address the challenges faced by strata communities in Victoria, ensuring that residents have access to affordable and comprehensive insurance coverage while promoting better governance and maintenance practices within the sector.

Published:Tuesday, 17th Feb 2026
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

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Insurance Deductible:
the amount that an insured is required to contribute toward an insurance claim as stipulated in an insurance policy. Otherwise known as the "policy excess".