Tough New Strata Laws Pass Parliament: Greater Transparency and Penalties for Agents

By Ian Rogers

Strata managing agents will now face stringent new regulations aimed at cracking down on undisclosed kickbacks and enhancing transparency in their dealings. The newly passed laws empower owners’ corporations to make key decisions regarding buildings and common property in townhouses and apartments, with strata managing agents assisting. These changes come in response to widespread concerns about accountability and conflicts of interest in the strata sector.

Key reforms in the legislation include:

• Increased Penalties: Stricter fines and higher penalty infringement notices for agents who fail to meet their obligations to disclose commissions.
• Enhanced Disclosure Requirements: Strengthening the rules around conflicts of interest, ensuring agents are transparent about any potential conflicts.
• Ban on Insurance Commissions: Agents are now prohibited from receiving commissions on insurance products unless they actively seek out the best deals for residents.
• Empowered Enforcement: NSW Fair Trading has been granted greater powers to enforce compliance and crack down on unethical practices in the strata industry.

These reforms are supported by an $8.4 million investment in NSW Fair Trading’s resources, as outlined in this year’s state budget.

Minister for Better Regulation and Fair Trading, Anoulack Chanthivong, emphasised the importance of these measures, stating: 

“Building more high-quality, higher density housing is a key pillar of the Government’s comprehensive plan to build a better NSW. We need people to have confidence to invest and live in strata schemes. These changes will help restore the confidence of the 1.2 million people already living in strata schemes.”

With these new laws, the government aims to strengthen trust in the strata system, ensuring better accountability and fairness for residents across New South Wales.

Four-Day Workweek Revolutionises Finance Industry

By Robert Heyward

The finance industry, long associated with demanding hours and high-pressure environments, is seeing a major shift as Insignia, a leading company in the sector, becomes the first to introduce a four-day workweek trial. This groundbreaking move, part of a union agreement, is expected to reshape the industry’s work culture and signal broader changes in how the sector approaches productivity, employee well-being, and technological advancements.

The Four-Day Workweek Trial

Insignia’s decision to adopt the four-day workweek is notable in an industry where long hours are often seen as the norm. Traditionally, financial services employees have been expected to work extensive hours to meet client demands, manage complex transactions, and navigate fast-paced markets. However, the introduction of the four-day week aims to challenge this status quo, offering employees a better work-life balance while maintaining the company’s high standards of productivity.

Under the terms of the new arrangement, employees will work four days a week without a reduction in pay. The aim is to create a more sustainable working model that combats burnout, improves mental health, and fosters job satisfaction. Early adopters of the four-day workweek in other industries have reported significant boosts in employee morale and efficiency, and Insignia hopes to replicate these outcomes in finance.

Union Agreement and the Role of AI

This trial is part of a broader union agreement that also acknowledges the growing role of artificial intelligence (AI) in financial services. As AI becomes increasingly integrated into the industry, from automating routine tasks to providing sophisticated data analysis, its impact on how work is performed has become a key consideration for companies like Insignia.

The union deal emphasises the need for greater recognition of AI’s role in transforming financial workflows. By reducing the hours worked by humans while simultaneously increasing reliance on AI tools, Insignia is positioning itself at the forefront of technological innovation within the sector. The agreement ensures that the workforce is properly trained to collaborate with AI systems, enhancing both productivity and job security in an evolving landscape.

A New Model for Finance

Insignia’s trial of the four-day workweek is part of a broader movement across industries worldwide. The finance sector, in particular, has been slow to adopt flexible working arrangements compared to industries like technology and creative services. However, the global trend towards shorter workweeks is gaining momentum as companies recognize the benefits of flexibility in improving employee performance and retention.

This shift comes at a time when many financial institutions are grappling with high levels of employee burnout and turnover. The pressures of remote work during the pandemic, coupled with rising expectations for constant availability, have pushed companies to rethink their approach to work. Insignia’s leadership believes that this trial will not only help retain top talent but also set a new industry benchmark.

The Impact on Productivity and Culture

Although the four-day workweek is still in its early stages at Insignia, there is optimism that it will lead to a more focused and efficient workforce. Research from previous trials in other sectors has shown that employees often become more productive when given less time to complete tasks, as the condensed workweek encourages greater focus and time management.

Additionally, Insignia is expected to benefit from a more engaged and motivated workforce. By prioritising employee well-being and aligning with the evolving role of AI, the company hopes to maintain its competitive edge while fostering a healthier work culture.

The Future of Work in Financial Services

Insignia’s pioneering move could serve as a catalyst for other financial services firms to rethink their working models. As the finance industry continues to grapple with the demands of a digital, fast-paced world, the introduction of a four-day workweek could represent a more sustainable and innovative future for both employees and businesses.

If the trial proves successful, it could spark a wave of similar initiatives across the financial services sector, leading to widespread changes in how the industry operates. For now, all eyes are on Insignia as it navigates this transformative period, balancing the integration of advanced technology with the needs and well-being of its workforce.

In embracing the four-day workweek and recognising the pivotal role of AI, Insignia is positioning itself as a trailblazer in an industry ripe for change.

‘Super Tax’ Poses Threat to Family Farms, Warns NFF

By Ian Roberts

Following the passage of the Treasury Laws Amendment (Better Targeted Superannuation Concessions and Other Measures) Bill 2023 through the House of Representatives, the National Farmers’ Federation (NFF) has once again sounded the alarm, warning Parliament of the potential devastating impact on thousands of family farms and small businesses across Australia.

NFF President David Jochinke expressed the sector’s ongoing concern, particularly over the taxation of ‘unrealised gains,’ which he says could force primary producers to sell their land just to meet the new tax obligations.

“The farming sector is particularly worried that taxing unrealised gains will compel farmers to sell off land assets to cover their new tax bill,” Jochinke said. “Many farms are held in self-managed superannuation funds (SMSFs) and are leased to the next generation, providing retirement income while allowing the family business to continue. This new tax could disrupt that balance.”

Farm assets often appreciate in value, but the income they generate remains modest. Under the proposed changes, Jochinke warned that farmers might face tax bills that take up a significant portion of their farm-derived income, leading to dire financial decisions.

“If the Bill proceeds unchanged, some farmers may be forced to sell their land, homes, or even borrow money just to pay this additional tax. Others might have to raise the rent they charge their own family members,” Jochinke explained. “These are not wealthy individuals with massive superannuation accounts—they are hardworking Australians who have spent their lives building farms to pass on to their children and grandchildren.”

A broad coalition of industry groups has also voiced concerns about the Bill’s impact, particularly regarding the taxation of unrealised gains. In August, eleven leading financial organisations, including CPA Australia, Chartered Accountants Australia and New Zealand, and the SMSF Association, highlighted the risks for small businesses and primary producers holding assets in SMSFs. They warned that some business owners might be forced to sell their premises to meet their tax obligations.

A University of Adelaide study further estimated that if the tax had been introduced in the 2021 and 2022 financial years, over 13 per cent of impacted members would have faced liquidity stress in trying to meet the new tax requirements.

As the Bill moves to the Senate, Jochinke urged Senators, especially those on the crossbench, to heed the concerns of Australian farmers, small businesses, and financial experts.

“We’re calling on Senators to address the consequences of this Bill, which threatens the livelihoods of thousands of hardworking farmers and small business owners across the country,” Jochinke said.