Netstrata
Transparency Hub

Netstrata is moving to a fully commission-free model across its entire business – including the primary company, subsidiaries andrelated entities. From 1 January 2026, no new contracts will include commissions of any kind. This commitment goes beyond insurance commissions and applies to all supply chain arrangements.

This is largely in effect across the business already. As of November 2025, Netstrata is not taking insurance commissions on over 90% of schemes it manages. Besides insurance commissions, the other notable type of commissions currently in place relate to energy tendering services, which are still active across approximately two thirds of Netstrata’s schemes. Netstrata is aiming to phase these out entirely throughout 2026.

When it comes to insurance commissions, Netstrata has always preferred a transparent fee-for-service model, which has long been inplace through our insurance subsidiary, Strata Insurance Services (SIS). This approach ensures owners know exactly what they are paying for and eliminates conflicted incentives. Our move to eliminate commissions entirely reflects our commitment to transparency and best practice.

Recent reviews and decisions across the strata sector indicate that a zero-insurance commission future is likely, though enforcement mechanisms remain unclear. Netstrata supports this direction and is taking proactive steps to lead the industry by going a step further.

By removing commissions of any type, we strengthen owner confidence, reduce perceived conflicts, and set a benchmark for ethical strata management.

One of the biggest frustrations for owners is not being able to see exactly how their money is spent. Traditionally, financial reports provided a summary, but not all of the underlying documents which are traditionally stored in proprietary systems or accessed by staff via internal accounting software.

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Netstrata has changed that by upgrading its Owners Portal to give owners direct access to every important financial document relating to their scheme, including the ability to view invoices down to the line-item detail for maintenance, repairs, insurance, and other services - including the breakdown of fees.

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These changes mean that Netstrata's Owners Portal is now the most advanced of its kind in Australia. This level of transparency may even be a world first in strata management accounting, and the result of over a decade of planning and many years of hard work integrating our accounting software and myriad other platforms to provide owners with access to every document and level of detail they could want.

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Plans are in place to extend the system further, so invoices can be linked back to work orders, and even to the original request made by an owner or resident. For owners, this means no more mysteries about why a bill is higher than expected, who approved it, or what work was carried out.

Section 55 Reports – Financial Transparency

These reports provide a detailed overview of the financial records of a strata scheme. They are designed to give owners visibility into the financial health of their building – including income, expenditure, budgets, and balances. In short, Section 55 reports help owners understand how their levies are being managed and whether the scheme is financially sound.

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Netstrata has redesigned these reports to be clearer and more user-friendly. The simplified version is now available, with a more detailed format currently in development. This will allow owners to choose the level of financial detail they wish to access. Both versions will be accessible via the Owners Portal and Netstrata app, enabling owners to download real-time financial reports whenever needed.

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Section 60 Reports – Disclosure of Commissions and Benefits

‍These reports are focused on information around commissions, payments, and benefits received by the strata manager or related entities. Their purpose is to ensure that owners are aware of any financial arrangements with other providers.

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Netstrata has expanded the scope of Section 60 reporting to include proactive communications with committee members before any related entity is engaged. This means that if, for example, Netstrata’s own insurance arm is proposed for a contract, owners are told upfront and in writing before a decision is made.

Annual General Meeting packs are often the only time owners receive a comprehensive set of information about their building. Netstrata has overhauled these packs to make them more informative and transparent. The following areas of our packs have been enhanced:

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• A Trade Compliance report: A summary of contractor compliance, including licensing, insurance, and safety credentials. A more detailed version is available on request, offering deeper insight into contractor vetting and risk management processes.

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• Disclosure of Netstrata Brands and Subsidiaries: A page listing all Netstrata-owned entities – such as insurance, maintenance, or service arms – so owners can clearly understand who they are engaging with and assess any potential conflicts of interest.

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• Strata Manager Remuneration Declaration: A transparent breakdown of how the appointed strata manager is remunerated, including base fees, commissions, and any performance-linked incentives.

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• Insurance Brokerage and Service Guides: Clear explanations of the role and scope of Strata Insurance Services, including how brokerage works, what services are provided, and how decisions are made. These guides help demystify insurance arrangements and empower owners to ask informed questions.

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• Complaints and Feedback Guide: A step-by-step guide for raising concerns, lodging complaints, or providing feedback – including escalation pathways and expected response times. This ensures owners feel heard and supported, and that issues are addressed constructively.

To address this, Netstrata now includes a Trade Compliance summary in every AGM pack. At their core, these summaries outline the compliance status of all tradespeople and suppliers engaged by the Owners Corporation. This includes confirmation that each contractor meets essential legal and operational requirements, such as licenses and registrations relevant to their trade, insurance coverage and public liability information, WH&S compliance, and conflict of interest declarations (if applicable). It allows owners to see, at a glance, whether the contractors working on their building are properly vetted and compliant with industry standards.

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On top of this, we seek signed attestations annually from all our suppliers confirming that Netstrata does not request or receive commissions, rebates, or incentives. This is an industry-leading measure. By asking our suppliers themselves to sign off, Netstrata extends accountability beyond its own staff to the businesses it engages.

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Netstrata does not provide financial incentives to Strata Managers for using our subsidiaries or preferred suppliers. Additionally, all Owners Corporations have complete freedom of choice and final say in selecting contractors, service providers, or insurers. While Netstrata subsidiaries such as Strata Insurance Services (SIS) are available as an option, and are often recommended due to their superior service quality, they compete on the same basis as external providers and are only recommended for schemes where they will provide the best outcome for owners.

Netstrata has appointed a senior risk and compliance professional, Daniel Clark, to lead a newly established Risk and Compliance Department. Risk and compliance in this context means making sure that every part of our business operates within the law, within industry codes of ethics, and in line with best practices and internal policies.

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The Head of Risk and Compliance has responsibility across all Netstrata brands, which ensures consistency and oversight at every level of the organisation. This role monitors how policies are applied in practice, ensures conflicts of interest are declared and managed, oversees internal audits, and provides a single point of accountability for risk and compliance issues. Owners can be confident that if questions arise, they are dealt with independently of day-to-day management pressures.

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This kind of dedicated risk and compliance leadership is rare in the strata industry, where many firms are small operators without formal governance or accountability structures. For owners, it means there is always someone whose job is to safeguard their interests by holding the business to account.

The McGrathNicol review found that Netstrata should have clearer processes for capturing and reporting any actual, potential or perceived conflicts of interest to owners.

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In response, Netstrata has created a formal Conflicts of Interest Policy supported by a central register and written conflicts management strategies. All staff are required to declare any actual, potential, or perceived conflicts, and managers undergo mandatory training to recognise and manage them. This makes sure that decisions about contracts, suppliers, or services are made transparently and fairly.

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The policy reflects the best practice guidance and industry bodies across a broad range of sectors, which sets a high bar for effective disclosure and management. For owners, it means confidence that business relationships are open and above board, with clear disclosures and protocols to ensure owner interests are protected.

The Managing Agency Agreement is the foundational contract between an Owners Corporation and its appointed strata manager. It defines the scope of services, fee structures, and the terms under which the relationship operates. Historically, these agreements have been criticised for their complexity, fragmented fee disclosures, and vague provisions that left owners uncertain about their rights and obligations.

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In response, Netstrata has commissioned Holding Redlich to draft a new agreement. The agreement not only meets legal requirements but sets a higher benchmark for clarity, fairness and regulatory alignment. The 2025 version introduces a restructured fee model, stronger compliance provisions, and clearer service definitions – all designed to give owners greater confidence and control.

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The fee structure has been overhauled to offer two distinct models. The first is a fixed disbursements model, which bundles core services – including administration, meetings, communications, data management and portal access – into a predictable monthly fee. This provides budgeting certainty and eliminates the confusion of scattered charges. The second is a pay-as-you-go model, allowing smaller or lower-demand schemes to pay only for the services they use. Both models include clearly defined fair use limits, and electronic services are priced explicitly. Importantly, Section 12 of the agreement mandates annual disclosure of any commissions or rebates received, aligning with Section 60 reporting obligations and reinforcing Netstrata’s commitment to transparency.

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The agreement has also been updated to reflect current legislation and industry standards, including the Property and Stock Agents Regulation 2022 and the SCA (NSW) Professional Standards Scheme. Compliance duties have been expanded to cover Strata Hub reporting, Office of the Building Commissioner surveys, and obligations under the Design and Building Practitioners Act. Cybersecurity provisions have been strengthened, with formalised protocols for electronic records, cloud storage and owner data handling – supported by a $3 million cyber insurance policy. Fire safety inspections now include dual checks for fire systems and window locks, with discounted rates available when using Netstrata’s in-house providers. The agreement also anticipates the growing role of artificial intelligence in strata administration, with privacy and transparency clauses embedded to ensure responsible use.

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Termination provisions have been clarified to reduce ambiguity and prevent disputes. The maximum term remains three years, in line with the Strata Schemes Management Act, with renewals requiring re-execution to ensure statutory compliance. Owners Corporations may terminate the agreement with 90 days’ notice following a properly convened meeting, while the agent may terminate with 30 days’ notice. Early termination fees are now defined, including a capped handover cost, and provisions for NCAT orders or compulsory management appointments are clearly articulated.

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Service duties have been restructured into three categories: routine duties included in base fees, opt-out services delivered unless declined, and opt-in services provided only on written instruction. This framework removes grey areas and ensures owners understand exactly what is included, what is optional, and what requires specific approval. Technology integration is now standard, with mandatory use of the Netstrata Space app for reporting, online invoice approvals, electronic voting, and QR-coded maintenance reporting. By-law enforcement procedures have been refined, and client communications are now measured and capped to ensure fair billing.

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Disclosure obligations have been significantly strengthened. The agreement includes full transparency around Netstrata’s subsidiaries – including Strata Insurance Services, Winfire, Resolute and PG Martin – and confirms that SIS operates on a fee-for-service basis, not commissions. Any training, rebates, retainers or referral fees from suppliers must be disclosed annually in Section 60 reports. A non-compete clause has been added to prevent staff poaching for 12 months post-termination, protecting continuity and service quality.

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Finally, the agreement reflects practical modernisation. Electronic delivery is now the default, with postal delivery available on request. The client portal and Netstrata Space app have been elevated as core service channels, ensuring owners have direct access to records, approvals and communications. References to AI signal a forward-looking approach to data use and service delivery.

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Taken together, these changes represent a significant step forward in strata governance. Owners can now engage with their strata manager under a contract that is aligned with best practice. Regulators can be assured that Netstrata’s approach meets – and in many areas exceeds – current compliance expectations. Most importantly, the agreement reinforces Netstrata’s commitment to ethical management, owner empowerment and continuous improvement.

In the strata industry, the receipt by managers of a share of insurance commissions have long been controversial.

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A commission is usually a percentage of the premium paid by the insurer, bundled into the cost of a policy. It is generally not separately itemised. In this sense, the higher the premium, the higher the commission.

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By contrast, Netstrata’s insurance subsidiary, Strata Insurance Services (SIS), operates on a transparent fee-for service basis. Our service fee is an upfront, itemised charge for the professional work involved in securing insurance: preparing and lodging submissions to underwriters, sourcing and negotiating quotes, ensuring appropriate cover for each building, managing renewals, and supporting owners through claims. This is highly technical work requiring licensed specialists, and our fee covers these activities directly. Under this model, owners benefit in two key ways. First, every fee is clearly outlined in our quotes and invoices. Second, the McGrathNicol independent review confirmed that while our service fees can sometimes be higher than the average commission, the premiums themselves are lower – meaning the total cost to owners is competitive, and often better, than the market average.

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Netstrata has, and does, take commissions from other external insurance providers, as it is the only means of remuneration with these providers. When this occurs it is disclosed. Netstrata is moving to a business-wide zero commissions policy for all new agreements from 1 January 2026, which includes insurance commissions paid by external insurance providers.

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In September 2025, the Strata Community Association (SCA NSW) announced it would phase out insurance commissions across the strata industry from 1 January 2026. More recently, it clarified that this change would not be mandatory. As stated above, Netstrata is supportive of, and fully adopting this change with its zero commissions policy. Netstrata's view is that any significant industry-wide change will require government intervention. Systemic change must be driven from the top-down to maintain a fair and competitive strata landscape.

Owners often find it difficult to compare insurance policies or understand broker fees. To fix this, Netstrata has adopted the Strata Community Association’s best practice guidelines for insurance renewals.

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This means that every SIS quotation template has been updated to clearly show the broker’s remuneration, to standardise the way information is presented, and to set out the scope of services provided.

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For owners, the benefit is simpler, clearer documents that make it easier to compare policies and ensure the best value is achieved.

Insurance is a complex area, and premiums for strata schemes can be significant. To ensure its processes are robust, Netstrata engaged an external actuary – an expert in assessing financial risk – to review its internal insurance practices.

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The actuary’s role was to examine how renewals were handled, whether enough quotes were obtained, and whether the process delivered value to owners. This external review has provided additional assurance that Netstrata’s systems are sound and has guided improvements where gaps were identified.

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For owners, this provides peace of mind that insurance is being managed to the highest standard and that external experts are being used to challenge and improve Netstrata’s internal processes.

Managing strata is a complex job that combines legal, financial, and operational skills. To ensure its managers are equipped, Netstrata has developed one of the most rigorous training programs in the country.

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New managers complete a six–eight week induction program covering all aspects of strata law, finance, compliance, and client service. Training doesn’t stop after induction. Netstrata’s Learning and Development team conducts regular audits of every scheme under management and quarterly reviews against more than 25 service and compliance metrics. These audits are tied to staff performance reviews, ensuring training translates into real-world standards.

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The outcome for owners is that their manager is supported, monitored, and held accountable. Issues are spotted early, and continuous learning ensures standards stay high. This level of structured training is rare in the industry, where many managers employed with other strata management firms are expected to learn on the job.

Owners increasingly expect to be able to access information on demand, not by waiting for an email or requesting documents from their manager. Netstrata has expanded its mobile app and client portal to deliver exactly that. Through the app, owners can now:

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• Receive instant alerts for levy notices and meeting minutes
• Access compliance documents and financial reports
• View AGM packs and disclosure documents
• Download audit packs and detailed financials

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A detailed user guide has been developed to help owners make the most of these tools. The goal is to make access to information simple and immediate, reducing reliance on intermediaries and giving owners more direct access.

Netstrata recognises that no system is perfect and that owners need clear pathways to raise concerns. To strengthen this, the company has established a dedicated Senior Client Service Manager role. This position exists solely to handle client complaints and ensure issues are resolved quickly and fairly.

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This adds an extra layer of accountability above individual strata managers. Owners can escalate concerns knowing there is a senior manager responsible for ensuring their issue is addressed. This system not only improves client satisfaction but also helps Netstrata identify recurring issues and fix them across the business.

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The Risk and Compliance Department provides an added layer of assurance through a quarterly review of closed complaints. Risk and Compliance will reopen complaints if there isn’t sufficient evidence to demonstrate the outcome was equitable and compliant with Netstrata’s commitment to customer service.

Many of the frustrations owners experience in strata come down to a lack of clear information. Strata law is complex, and terms like “common property,” “Section 60 reports,” or “managing agency agreements” can be confusing. To close this knowledge gap, Netstrata has launched a dedicated Learning Portal.

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The Netstrata Learning Portal is designed to improve public literacy about strata – making key concepts understandable for anyone, not just our owners. It will provide plain-English explanations of how strata works, owners’ rights and obligations, and the financial and governance frameworks that underpin schemes. Modules will cover topics like insurance, levies, committee roles, and common property.

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Unlike most industry resources, the Netstrata Learning Portal is open to the public. For owners, this means more informed decision-making and fewer misunderstandings at meetings. For the broader industry, it helps to lift overall awareness and improve the quality of discussion around strata governance. This is part of Netstrata’s commitment to leadership and transparency in the sector.

Specific information regarding the implementation status and details of these recommendations can be found here.

When questions were raised about strata management practices across the industry, Netstrata recognised that relying on internal reforms alone was not enough. To ensure changes were credible, effective, and benchmarked against the highest standards, we engaged a suite of independent experts to review our business.

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Insurance Actuary

Insurance is one of the most complex and costly aspects of strata management. Every building has unique risks – from fire safety and water damage to liability cover – and premiums can be significant. To make sure our internal processes stood up to scrutiny, we engaged an independent actuary.

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An actuary is a financial risk specialist. Their task was to assess whether our insurance renewal processes were robust, whether we were obtaining sufficient quotes, and whether the methods we used to assess cover levels were appropriate. The actuary provided recommendations on how to tighten procedures, strengthen checks, and make the process more transparent.

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For owners, this means greater confidence that their building’s insurance is being arranged with technical rigour and that the systems behind it have been tested by an independent professional.

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Hall Advisory

To ensure the findings of the McGrathNicol Independent Expert Review were implemented quickly and effectively, we retained Hall Advisory. Hall is a governance, risk and compliance consultancy with deep experience in financial services and regulatory reform.

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Their role was twofold:

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1. Implementation support – helping us translate recommendations from the McGrathNicol review, and the additional suggestions from SCA, into concrete policies, procedures, and reporting lines.
2. Policy development – advising on risk management and compliance frameworks that would not only address immediate recommendations but also create a system for continuous improvement.

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This external oversight ensured that reforms were not just drafted but embedded into our daily operations.

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AMP Consulting

Clear communication is as important as good governance. Technical documents like insurance policies, commissions disclosures, or fee structures can be complex and difficult for owners to interpret. To address this, we engaged AMP Consulting to prepare plain-English educational guides.

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These guides explain, in straightforward language, how strata insurance works, what “gross” and “net” terms mean, what fees or commissions might appear, and what services are being provided for brokerage fees. They are now included in our AGM packs and insurance renewal materials.

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For owners, this means less jargon and more clarity. Instead of being left with technical reports they may not understand, committees receive accessible guides that make it clear how decisions are made and what costs mean.

Andrew Tunks – Chief Operating Officer

Promoted from Director of Learning and Development, Andrew Tunks now serves as Chief Operating Officer. His appointment reflects the central role that training and professional standards play in Netstrata’s future. Andrew designed and delivered Netstrata’s comprehensive training framework for strata managers, which includes structured induction, regular audits, and continuous professional development. By moving into the COO role, he now brings that same focus on rigour and consistency to the company’s broader operations. For owners, Andrew’s leadership means that quality, compliance, and training are not afterthoughts – they are embedded at the heart of how Netstrata functions.

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Daniel Clark – Head of Risk & Compliance

Daniel Clark joined Netstrata as the Head of Risk and Compliance, a role created specifically to give risk and compliance the prominence it deserves. Strata management involves handling millions of dollars of client funds, engaging contractors, and navigating complex regulation. Having a senior leader solely responsible for risk and compliance ensures these responsibilities are managed with independence and authority. Daniel oversees the company-wide risk and compliance framework, manages conflict of interest disclosures, and ensures policies are consistently applied across the entire business. For owners, this translates into stronger governance, clearer disclosures, and confidence that standards are not just set, but enforced.

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Stephan Praglowski – Senior Client Service Manager

Strata is as much about people as it is about property. To improve client service and create a clear escalation path for complaints, Netstrata appointed Stephan Praglowski to the newly created role of Senior Client Service Manager. Stephan’s focus is on ensuring owners’ concerns are addressed quickly, fairly, and consistently. This role provides reassurance to our owners that if issues arise, there is a senior manager dedicated to resolving them.