Payment Plans for Overdue Strata Levies

Do you know your rights and obligations when it comes to payment plans for owners in financial hardship whose strata levies are overdue?

If not, we have good news …

  • Owners Corporations must consider an owner’s request to commence a payment plan and provide a response to the owner within 28 days.
  • The OC cannot charge an owner a fee for their request to start or continue with a payment plan.
  • Levy notices must be accompanied with the provided Financial Hardship Information Statement.
  • Cannot take action against an owner who is complying with a payment plan.
  • Under a new provision (which is not yet in force), the OC will not be able to sue to recover costs or for interest without having issued a payment plan.
  • The OC must give at least 30 days notice to an owner if they intend to take action against them to recover unpaid levies.
  • The OC must not pass a resolution to refuse all payment plans.

  • OCs may reasonably refuse to allow an owner to enter into a payment plan. Examples of reasonable grounds of refusal include that the OC’s capital works or admin fund will have insufficient needs if the payment plan is allowed, or that the owner has repeatedly failed to pay levies.
  • The OC will need to provide the owner with written reasons outlining why this refusal is reasonable.

  • Owners seeking to enter into a payment plan must complete a standard Request for Payment Plan for Overdue Contributions form.
  • If their request to enter a payment plan is refused, the owner may apply to NCAT and request that their application be approved.

Get in touch with Vinc Legal today for specialist Strata Law advice!

Strata Law is a niche area, this is why choosing a strata specialist law firm is vital for obtaining cost-effective advice and resolution of your legal problems.

If you have questions about strata law or need assistance with a specific issue, please do not hesitate to reach out. We are here to help you every step of the way.

  • 02 8076 6016
  • info@vinclegal.com.au
  • Level 21/133 Castlereagh Street, Sydney, NSW 2000

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