NSW: Can you refuse to pay strata levies for works you believe are illegal?

Question: What happens if you get a levy notices for works you think are illegal? What rights do I have to not pay?

What happens if you get a levy notices for works you think are illegal? The body corp have not obtained the correct council permits and I think the work is going to be order to be demolished anyway, what rights do I have not to pay for them?

Answer: Regardless of the legality of the purpose for which the money was raised, if meeting the meeting was legal and the notice for the contribution was properly issued I do not see how an owner could withhold payment.

Regardless of the legality of the purpose for which the money was raised, if meeting at which the contribution was struck was legal (e.g. notice periods were met and the voting was achieved) and the notice for the contribution was properly issued – I see no reason that an owner could withhold payment.

Should the owner withhold payment and the levies fall overdue, they will be liable for interest and risk having debt recovery proceedings take place against them.

I suggest that the owner would be best challenging the issue at the tribunal if they believe the owners corporation is acting illegally; they are otherwise able to try and convene a general meeting (by arranging a qualified request) to overturn the decisions regarding the works and the associated levy.

19 Other general meetings

1. The secretary or a strata committee of an owners corporation may convene a general meeting (that is not an annual general meeting) of the owners corporation at any time.
2. The secretary of the owners corporation, or another officer if the secretary is absent, must convene a general meeting (that is not an annual general meeting) of the owners corporation as soon as practicable, and not later than 14 days after, receiving a qualified request.
3. A meeting may be convened on a qualified request even if the first annual general meeting has not been held.
4. A request is a qualified request for the purposes of this section if it is made by one or more owners of a lot or lots in the strata scheme having a total unit entitlement of at least one-quarter of the aggregate unit entitlements.

This post appears in the February 2021 edition of The NSW Strata Magazine.

Andrew Terrell
Bright & Duggan
E: Andrew.Terrell@bright-duggan.com.au
P: 02 9902 7100