The fallout from the banking royal commission could force timeshare clubs to radically change their sales model.

The Treasurer and corporate regulator have confirmed the government would review whether it’s appropriate for timeshare companies to continue paying commissions to sales staff.

The timeshare industry is under pressure over its sales model. Credit:Mike Curtain

“The royal commission report and government’s response stated that as part of the government’s review of measures to improve the quality of advice, government will review the remaining exemptions to the ban on conflicted remuneration,” said a spokesperson for the Australian Securities and Investments Commission. “This would include a review of commissions on timeshare.”

This comes amid renewed pressure for the regulator to clean up bad practice in the timeshare industry, including lengthy contracts offering poor value, high-pressure sales tactics and poor terms on loans to fund the up-front cost of membership.