Question: Can the OC charge an owner a monetary fine for parking or other similar bylaw breaches?
Can the OC charge an owner a monetary fine for parking or other similar bylaw breaches? If these fines are not paid the lot owners won’t be financial and will not able to vote at the AGM.
I thought NCAT were the only bodies that may enforce payment and only after the Owners Corporation has satisfied the tribunal of the merits of its case.
If that’s this is correct, can an Owners Corporation issue a fine that has not been considered by the tribunal or court be used to stop an owner voting at the AGM?
Answer: This is too much power for an owners corporation to have.
There are no provisions under the Strata Schemes Management Act (‘the Act’) that empower an owners corporation to issue penalty infringement notices (fines).
The Act frequently talks about situations in which the Tribunal has the power to order payment of monetary penalties, sometimes payable to an owners corporation. However, it never talks about the owners corporation having that power itself.
Put simply, this is too much power for an owners corporation to have. The law requires these matters to be reviewed and decided upon by a Tribunal or Court, which can ensure that due process is followed.
An owners corporation may have a by-law that requires monetary payments to be made to it for certain things. For example, payment of a fee for use of a common area, or a bond for moving in or out.
However, these amounts cannot be treated as if they were levies. Part 5, division 2 of the Act is very clear in terms of the proper procedures for levies being raised and includes no provisions for levying a single lot (the only such provision is under section 82 in relation to insurance premiums, and even then, the owner must consent, or be ordered by the Tribunal, to pay a higher levy).
If a person were to breach the by-law by refusing to pay, then the owners corporation would have to pursue the normal channels for enforcing its by-laws (i.e. obtain orders from the Tribunal to enforce the by-law and potentially also seek orders for fines to be issued for non-compliance with the by-laws).
The Tribunal would then have the opportunity to assess the by-law and whether it is reasonable in accordance with section 139 of the Act.
Tim Sara
Strata Choice
E: tsara@stratachoice.com.au
P: 1300 322 213
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