Ten top consumer groups are demanding the federal treasurer call an inquiry into the strata management industry.
It requests Mr Chalmers immediately direct the Australian Competition and Consumer Commission ,or the Productivity Commission to conduct an inquiry into the sector. In one instance, the country's biggest strata insurance broker, Steadfast, was found to have recommended a more expensive policy, offered by a firm it owned, without showing clients a cheaper quote from a competitor.The consumer groups are calling on Treasurer Jim Chalmers to direct the ACCC or the Productivity Commission to conduct an inquiry.
And in another case, management firm Strata Plan was accused of charging two apartment owners in a Melbourne complex more than $100 to chase up a 60c debt they owed on their levies., had been charging insurance brokerage fees as high as three times the usual rate and receiving kickbacks from contractors and suppliers it hired using apartment owner's strata funds.
"It's one thing to go 'you've been naughty', it's another thing to go 'and you'll be handing back the money'," Ms Stiles said.Photo shows A man stands on the edge of a street in the foreground. Across the street are a number of large apartment buildings. In their joint statement, they told the treasurer one signatory had recently learned of more than 140 alleged cases where strata managers had "unlawfully appointed insurance brokers, causing significant harm" and "that was merely the tip of the iceberg".
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