In response to last night’s damning ABC Four Corners’ report on the strata industry, a coalition of consumer advocacy groups, including insurance brokers, has called on the federal government to launch a public inquiry.
A media release cited “systemic harmful practices within the industry that compromise consumer rights and community expectations.”
Tyrone Shandiman (pictured above), chair of the Australian Consumers Insurance Lobby (ACIL), said his group has already documented 146 cases of wrongdoing involving brokers and strata managers. He said ACIL is investigating other cases of alleged “significant misconduct”.
“Given this evidence of widespread unethical practices, one must question what further proof is necessary to prompt a government inquiry into these serious issues,” said Shandiman, who also runs a brokerage business involved in the strata sector.
In the release, Karen Stiles from the Owners Corporation Network of Australia, referred to “an alarming trend in strata management practices that are not only unethical but potentially unlawful.”
Stiles said the lack of transparency and accountability in the current system has left many apartment owners vulnerable.
“We need a thorough inquiry that not only highlights these issues but also leads to substantial reforms,” she said.
The coalition made their call in a letter to Federal Treasurer Jim Chalmers.
According to their release, the scope of the inquiry should include:
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