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The Strata Community Association (SCA) has urged the federal government to pass the reinsurance bill before the election in a bid to reduce insurance premiums for strata home owners.
Kristi Kinast, president of SCA Queensland, has stated that this law is a necessary first step in resolving strata insurance affordability issues that have plagued the northern Queensland region’s strata sector.
“Strata insurance premiums in northern Queensland were more than double the national average, according to the Australian Competition and Consumer Commission (ACCC) at the end of 2020, the problem is getting worse by the minute and action needs to be immediate,” she explained.
The finalisation of the reinsurance pool by the sitting government just last week had been met with fanfare from industry groups – and was intended to kick off on 1 July 2022.
Minister Michael Sukkar has met with the group for consultation and has forwarded their feedback to the Senate committee for review ahead of their deadline to report back on 24 March.
However, Ms Kinast has expressed apprehensions that passing the bill to a committee might cause further delay now that there is “just one joint sitting week of the Federal Parliament slated prior to the election”.
This is why the SCA has amplified the call of strata home owners for “politicians of all parties to work in a cohesive and bipartisan fashion to get this done” and has weighed in on the bill’s impact on a large number of the population.
“This is absolutely critical to the 880,000 people it is projected to positively impact and further delay is not an option,” Ms Kinast said.
The federal government’s announcement of the proposed legislation has been met with enthusiasm by the group, noting the “potential 58 per cent saving on premiums as announced are a potential game-changer”.
Seeing how the reinsurance bill can potentially affect strata home owners’ lives, the SCA has reiterated their appeal to Parliament to take immediate action.
“Announcements mean little if they aren’t put into law, and we urge the government to not leave northern Australia behind,” said Ms Kinast.
Looking at the reason behind the SCA’s appeal for urgent action, Ms Kinast had this to say: “Residents of Northern Australia have faced a decade-long struggle for a reinsurance pool and premium relief, and to see this light at the end of the tunnel extinguished would be devastating for those communities.”
ABOUT THE AUTHOR
Noemi Paminuan-Jara
Noemi is a journalist for Smart Property Investment and Real Estate Business. She has extensive experience writing for business, health, and education industries. Noemi is a contributing author of an abstract published by the American Public Health Association, and Best Practices in Emergency Pedagogical Methods in Germany. She shares ownership of the copyright of an instructional video for pharmacists when communicating with deaf patients. She attended De La Salle University where she obtained a double degree in Psychology and Marketing Management.
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