Question: Can a strata levy increase be backdated? Our payment quarter is 1/10 – 31/12. We had a levy increase at an AGM on 15/11. The levy has been backdated to 1/10.
Answer: Provided you are given at least 30 days within which to pay the levy, this is not in breach of the Act.
Pursuant to Section 83(3) of the Strata Schemes Management Act, 2015 (NSW) (Act), levies are due and payable on the date set out in the notice which must be at least 30 days after the notice is given.
Therefore, if the levy increase was determined in November but dated 1/10 (the Act is silent on backdating), provided you are given at least 30 days within which to pay the levy say around 15/12 or later, that is not in breach of the above section.
Leanne Habib
Premium Strata
E: info@premiumstrata.com.au
P: 02 9281 6440
This post appears in Strata News #639.
Answer: The Act does not set a limit regarding increases and or timing to pay.
The Strata Schemes Management Act 1996 does not set a limit regarding strata levies increases and or timing to pay a levy raised by an Owners Corporation.
Actually the Act does set a limit, it isn’t a number but more a guide.
Section 79 says: actual and expected expenditure for both admin and captial works fund.
If you OC is raising above and beyond actual and expected expenditure to such an extent it is irrational then they exceed the ‘limit’.
Hi Stephen
Leanne Habib, Premium Strata has provided the following response:
Correct, an Owners Corporation must, at each annual general meeting, estimate how much money it will need to credit to its capital works fund for actual and expected expenditure, however, that is not to say that special levies might be raised throughout the year
Question: Can a strata levy increase be backdated? Our payment quarter is 1/10 – 31/12. We had a levy increase at an AGM on 15/11. The levy has been backdated to 1/10
Looking at ss79 and 81 it is a little grey whether or not back dating is OK.
I would prefer to argue it is not OK..
The spirit of the Act would tend to lead me to think any decision on a levy is from that point forward and if extra money is needed then that is what a special levy is for..
It seems the answer above creates the principle that the OC can back date it all they like as long as they give the ‘prescribed’ notice to pay it. That to me seems outside of the purpose of the legislation.
Most of the information is in regard to unit blocks, not villas and townhouses.
Also are there some strata schemes where the owner is responsible for work needed on their individual villa or townhouse and only contribute levies for the common areas such as gardens and driveways ?