Netstrata
Transparency FAQs

Since early 2024, Netstrata has implemented a comprehensive reform program to strengthen governance, transparency and owner confidence.

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These reforms are detailed exhaustively in a dedicated Initiatives & Reforms section on this website.

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The changes we've made go beyond what is typical in the industry. They reflect our commitment to best-practice operations in a sector that is still developing consistent professional standards.

No. There is no actual conflict. We always ensure our clients get the best value – regardless of whether a service is delivered by a wholly owned subsidiary or an external provider.

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Conflicts of interest can be actual, perceived or potential. Generally:

• An actual conflict arises when a decision-maker is improperly influenced by private benefit.
• A perceived conflict exists when it appears to others that a decision may not be impartial – even if it is not influenced.
• A potential conflict is a situation where a conflict could reasonably arise in the future.

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At Netstrata, we take all three types seriously and have governance in place to manage them transparently and effectively.

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While Netstrata does have family members working in the business and wholly owned subsidiaries providing services such as insurance broking and fire safety, the potential or perceived conflict is managed through clear safeguards. These include:

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Full disclosure: All related-entity relationships – including familial ties, ownership structures and commercial arrangements – are disclosed before any appointment. These disclosures are made in our Management Agency Agreements, AGM packs and Section 60 reports. These commercial arrangements are permitted under the Strata Schemes Management Act and the Property and Stock Agents Act, and are disclosed in accordance with those requirements.

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Owner control: The Owners Corporation always has the final say on who is engaged for insurance, maintenance or compliance work. No related entity is appointed without owner approval. There is no obligation to use our subsidiaries. Owners are free to appoint any provider they choose, and we support those decisions fully.

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Compliance oversight: Our group structure allows us to set performance standards for related-entity work to ensure it meets both legal requirements and our quality standards. This includes quarterly audits, internal KPIs, and performance reviews. Subsidiaries are held to delivery KPIs, and strata managers are scored against individual performance metrics covering service quality, compliance and owner satisfaction.

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Benchmarking: Fees are at or below market rates to ensure competitiveness. We periodically assess competitiveness against the market where fees for comparable services can be obtained.

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Independent validation: The McGrathNicol Independent Expert Review – commissioned by NSW Fair Trading – was one of the most comprehensive assessments ever undertaken of an Australian strata management business. It confirmed that our service fees – including those of our subsidiaries – are at or below market rates.

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We created our related entities – including Strata Insurance Services (SIS), Winfire (fire safety), and others – to address persistent gaps in the strata sector, particularly in areas like insurance, fire compliance and maintenance, where external providers often struggle to meet governance and reliability standards. These businesses operate to the same exacting standards we apply to our strata management. What we expect from our related service providers:

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• Completed on time – with internal teams familiar with the buildings they service, reducing delays and improving responsiveness.
• Compliant with all legal requirements – with oversight from our compliance function to ensure statutory obligations are met.
• Delivered to best-practice standards – using rigorous internal standards and performance metrics.
• Benchmarked against market pricing – with periodic reviews to ensure fees remain competitive and fair

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With this governance in place, the use of related entities does not create an unmanaged conflict of interest – it creates a quality-controlled, transparent way to deliver services that owners approve, can scrutinise, and can replace with alternatives if they wish.

The strata industry often overlaps with sectors that can be inconsistent in quality, compliance, and governance. On the other side, we deal with industries such as insurance and safety that demand precision, thorough record-keeping, and strict adherence to rules. Many external providers in these sectors deliver excellent results, but some fall short, causing delays, compliance risks, or higher costs for owners.
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For schemes under our care, we wanted to ensure there were reliable, high-standard service options available in every category. So, our prefernce is to utilise wholly owned subsidiaries to bridge this gap, and operate to the same high standards we apply to our strata management.

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Owners always have the final say on whether to use our subsidiaries or appoint an external provider. Where an external provider is chosen, we work with them to ensure they can meet the needs of the scheme.

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The McGrathNicol Independent Expert Review confirmed that the service fees of our subsidiaries are at or below market rates, validating that the services we provide deliver fair value.

In strata insurance, a commission is a payment made by the insurer to the broker or strata manager as a percentage of the premium. It is included in the policy cost, meaning owners often don’t realise they are paying it. Because it is built into the premium, it can be difficult to see how much it is or what it is for.

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This creates two key problems:
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• Transparency: Owners may not know they are paying a commission, or how much it is.

• Conflicted incentives: If a manager or broker is rewarded with a percentage of the premium, they may have less incentive to negotiate for lower premiums, because their commission would also go down.

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Strata Insurance Services (SIS) operates on a fee-for-service model. This means:
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• No commissions are received from insurers

• Fees are disclosed upfront and itemised on every invoice

• Owners approve every appointment

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This model ensures that owners know exactly what they are paying and what they are getting for it. It also aligns with our commitment to transparency, as outlined in our Code of Conduct.

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However, when external brokers are used – either by owner choice or due to scheme-specific needs – some operate on a commission model. In this model:

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• The broker receives a percentage of the premium from the insurer

• This commission is bundled into the policy cost

• Owners may not realise they are paying it

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This model is common across the strata industry in NSW. According to the Strata Community Association (NSW), commissions have long been a source of concern due to their lack of transparency and potential to create conflicts of interest. In September 2025, SCA NSW announced it would begin phasing out insurance commissions across the industry, starting 1 January 2026. More recently, they updated this announcement to clarify that this change would not be mandatory.

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So, where do we stand? Owners deserve clarity, fairness and control. Netstrata supports the principle of transparency and has been operating on a fee-for-service model for its own brokerage, Strata Insurance Services (SIS). Whether working with SIS or an external broker, we ensure that all fees are disclosed and all appointments are approved by owners, and all decisions are made in the owners’ best interests.

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Furthermore, from 1 January 2026, Netstrata will begin phasing in a Zero Commissions policy on all new agreements across its entire business, which includes insurance commissions. We believe that the only way to successfully implement this model sector-wide is via government reform. We will continue to comply with all regulatory changes and industry standards as they evolve, and work proactively with government and industry bodies to drive positive change as the sector evolves.

Insurance premiums for strata schemes are based partly on the perceived risk of the building and its occupants. Some commercial tenants – such as tobacconists, tattoo studios, and certain food outlets – are classified by insurers as higher risk. These businesses can increase the likelihood or cost of claims (e.g. fire, theft, liability), which in turn pushes up premiums for the entire building.

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For example:

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• A tobacconist in a mixed-use building may be considered a fire and theft risk due to the nature of stock and storage. Insurers may apply higher premiums or stricter policy conditions.

• A restaurant might increase fire risk due to commercial kitchen operations, especially if ventilation, fire suppression or maintenance records are inadequate.

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Netstrata manages this by:

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• Ensuring accurate disclosure of all commercial occupants to insurers. This includes tenant type, business activity, and any known risk factors.

• Working with brokers to minimise premium impacts where possible. This may involve negotiating exclusions, adjusting coverage, or sourcing alternative quotes.

• Advising owners on the likely insurance implications before changes in occupancy are approved. This ensures committees understand the financial and compliance consequences of tenant decisions.

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This is a normal and widely recognised dynamic in mixed-use buildings, and not unique to Netstrata. Our role is to ensure owners are informed, insurers are accurately briefed, and premiums reflect the true risk profile of each scheme.

No. Schedule B work refers to services that fall outside the standard scope of the strata management agreement – such as project management, insurance claim coordination, major works oversight, or additional administrative tasks not covered under the base fee. These services are not automatically included in the agreement and are only undertaken if scoped, agreed to, and approved by the Owners Corporation.

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Netstrata strata managers may receive additional remuneration when Schedule B work is identified, approved, and performed. The purpose of this incentive is to encourage managers to actively investigate and recommend work that helps maintain or improve the scheme – above and beyond the default remit of their role. This ensures that schemes receive proactive service and that managers are fairly compensated for delivering non-standard outcomes and the extra time they expend in doing so.

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This can only occur where there is a genuine need for the work, and where the Owners Corporation has approved it. Netstrata managers know their schemes better than anyone – and the Schedule B incentive structure is designed to reward them for identifying and delivering additional value beyond the standard scope of the management agreement. By linking remuneration to owner-approved, non-standard services, the model encourages proactive stewardship and ensures that the interests of the manager and the Owners Corporation remain aligned.

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While Schedule B fees may sometimes include services delivered by related parties, there is no specific incentive for a manager to appoint a related entity. The same remuneration applies whether the work is performed by a related provider or an independent third party. Appointments are made based on service quality, compliance, and value – and always subject to owner approval.

Netstrata’s commitment to providing information to Owners Corporations is not new – it has been decades in the making. For more than ten years, our leadership team has held a clear vision: that every owner should be able to see exactly how their money is spent, who is doing the work, and how decisions are made. That vision was ambitious; however, the technology wasn’t there yet – it required alignment of myriad systems and upgrades to accounting software that have been underway for years.

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In 2025, that changed. After years of investment in system integration, data architecture and digital infrastructure, Netstrata launched the Netstrata Owners Portal – a secure, real-time platform that gives owners access to:

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• Invoices and payments: Every invoice paid by the scheme is visible, including supplier details, work descriptions and costs. Owners can click on any expense line to view the actual invoice.

• Levy history: Owners can view a complete ledger of their levy contributions, including payment dates and outstanding balances.

• Scheme financials: Budget summaries, expenditure breakdowns and financial reports are available in real time.

• Compliance records: Section 55 and Section 60 reports are accessible on demand, with enhanced formatting for clarity.

• Meeting records: AGM minutes, notices and resolutions are stored and searchable.

• Maintenance tracking: Owners can report issues, track progress, and (soon) view who lodged the request and when it was resolved.

• Notifications: Real-time alerts for levy notices, meeting updates and compliance documents are built into the system.

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This portal is supported by redesigned AGM packs, which now include:

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• Trade compliance summaries

• Contractor attestations

• Strata Manager remuneration declarations

• Insurance broker service explanations

• Complaints and feedback guidance

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These materials are underpinned by our updated Management Agency Agreement, which clearly sets out all fees, inclusions and optional services – with no hidden charges. Owners can choose between a bundled monthly fee or a pay-as-you-go model, and all electronic services are itemised.

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Together, these tools represent the most advanced transparency system in Australian strata – and, based on our research, potentially the most comprehensive globally. They are not just technical achievements; they are the fulfilment of a promise made to our owners years ago.

Owners can view their most recent AGM notice by logging into the Netstrata Owners Portal. Once logged in:

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1. Navigate to ‘Building Documents’
2. Select ‘Meeting Minutes & Notices’
3. Open the most recent document beginning with ‘AGM Notice’

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The disclosures will appear toward the end of the document in sections titled ‘Report Pursuant to Section 55’ and ‘Report Pursuant to Section 60’ (owners can use the search function to locate these quickly).

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Netstrata recognises that these details can sometimes be difficult for owners to locate or interpret. To address this, the team is currently developing a new Disclosures tool. This will be an industry first and far surpass current legislative requirements, by providing owners the ability to easily log in and access a real-time Section 60 disclosure tailored to them and their scheme, without waiting for the next AGM or scrolling through lengthy documents.

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Developing this requires significant reorganisation of systems across all schemes under Netstrata’s care, however work on this feature is underway, and Netstrata is proud to invest the time and resources needed to deliver something that genuinely supports owners’ peace of mind. Netstrata is committed to exceeding the status quo and setting the benchmark for transparency in the Australian strata sector.

Strata management affects millions of Australians, yet the way it works is not always well understood. The industry has grown rapidly, but consistent standards have not always kept pace. Many owners have experienced frustration – unclear fees, limited visibility, and a lack of confidence in how decisions are made.

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Netstrata understands this. We know that trust is earned through transparency, and that our role is not just administrative – it is custodial. We are entrusted with the care of people’s homes, and that responsibility demands the highest standards of ethics, professionalism and accountability.

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Our commitment to owners is built on three pillars:

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1. Transparency

We believe owners should be able to see exactly how their money is spent, who is doing the work, and what decisions are being made. That’s why we’ve upgraded the Netstrata Owners Portal – with real-time access to every invoice, payment, and report relating to their scheme. We’ve redesigned our AGM packs, upgraded our Section 55 and 60 disclosures, and introduced contractor attestations and trade compliance summaries. These tools give owners full visibility and control.

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2. Governance and Ethics

We’ve implemented a formal Code of Conduct Policy that sets clear expectations for every staff member, contractor and subsidiary. It prioritises client interests, mandates conflict-of-interest training, and enforces professional behaviour. Our governance reforms – including the appointment of a Group Compliance Manager, quarterly audits, and performance reviews – ensure that our standards are not just written, but lived.

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We disclose all relationships with related entities, and owners approve every appointment. Our pricing is benchmarked against market rates, and our services are monitored for quality and compliance. These safeguards ensure that every decision is made transparently and on merit.

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3. Industry Leadership

We recognise that some challenges – like insurance commissions – are systemic. Netstrata has already adopted a fee-for-service model through our brokerage subsidiary, SIS. But we also acknowledge that broader reform requires industry-wide action. That’s why we support the direction set by SCA NSW, which has announced a phase-out of commissions from 1 January 2026. We will continue to comply with all regulatory changes and contribute constructively to industry improvement.

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Our commitment is not reactive – it is proactive. Many of the reforms we’ve implemented were already underway before the ABC report aired. The scrutiny accelerated our efforts, but the direction was already clear. We are building a business that owners can trust – and are committed to leading the sector in fair strata management, trust and transparency.

Netstrata’s Code of Conduct outlines the expected behaviours of all staff, contractors, consultants and subsidiaries. It is built around six core values:

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• Teamwork – We collaborate respectfully and inclusively.

• Client Centred – We put client interests first, always.

• Innovation – We welcome new ideas and challenge ourselves to improve.

• Accountability – We own our mistakes and learn from them.

• Integrity – We keep our word and act in our clients’ best interests.

• Transparency – We proactively disclose conflicts and ensure decisions are visible.

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The Code also includes:
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• A commitment to risk and compliance culture, requiring staff to understand their regulatory obligations and escalate concerns promptly.

• A clear process for speaking up, including whistleblower protections and multiple reporting pathways.

• Expectations for professional behaviour, both in and out of the workplace. Staff are ambassadors for the business and must act with honesty, transparency and respect.

• Strict rules around conflicts of interest, including family relationships, supplier arrangements and outside business activities. Staff must prioritise client interests above their own and above Netstrata’s commercial interests.

• Guidance on ethical decision-making, including a framework for evaluating choices based on client impact, legal compliance, values alignment and long-term sustainability.

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Every staff member is required to understand and apply the Code. Breaches may result in disciplinary action, up to and including termination. The Code is reviewed regularly and updated to reflect evolving standards and expectations.