ICA Advocates for Strata Law Reform in the ACT to Enhance Building Management

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The Insurance Council of Australia (ICA) is urging the Australian Capital Territory (ACT) to adopt strata transparency regulations, aiming to enhance oversight of building repairs and maintenance by owners’ committees.

This call was made during a parliamentary inquiry, where the ICA pushed for measures akin to recent legislative changes in New South Wales.

Alexandra Hordern, the General Manager for Regulatory and Consumer Policy at ICA, underlined the need for full transparency in fees and charges connected with insurance purchases. The ICA strongly believes that by strengthening the disclosure requirements, the ACT can foster better transparency across the entire supply chain. This push is part of a broader recommendation to mirror some of NSW's recent reforms.

Addressing the inquiry, Hordern highlighted that the difficulties in securing insurance coverage often stem from inadequate maintenance or pre-existing building issues such as water ingress. She pointed out that volunteer owners’ committees frequently confront complex challenges in managing strata properties effectively, with maintenance often being a significant concern in these communities.

ICA's recommendations emphasise the importance of reinforcing maintenance and repair systems within strata schemes while advocating for enhanced education for committee members. However, Hordern cautioned that while imposing obligations on these committees is necessary, it should be balanced to ensure it does not discourage volunteer participation.

Alongside these calls for strata reform, ICA highlighted the growing need for lithium-ion battery safety awareness, particularly for e-scooters and e-bikes, advocating for public education campaigns on safe battery practices.

Supporting ICA's stance, Richard Kiplin, CEO of the National Insurance Brokers Association, echoed the importance of reforms aimed at strengthening strata governance, transparency, and risk management. During the inquiry, Kiplin emphasised the necessity of recognising the distinct yet complementary roles that brokers and strata managers play in this domain.

The Standing Committee on Legal Affairs has initiated an inquiry into the management of strata properties earlier this year, although a specific reporting timeline has not been disclosed yet. As the inquiry progresses, all eyes are on potential developments that could significantly affect the management and regulation of strata communities in the ACT.

Published:Tuesday, 8th Jul 2025
Author: Paige Estritori

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