This article discusses NSW strata penalty units, explaining what they mean, how they are calculated, and when an owners corporation can rely on NCAT to enforce compliance.
Question: What are Penalty Units in NSW strata? Can we use penalty units to make an uncooperative lot owner comply?
What are the Penalty Units referred to in the STRATA SCHEMES MANAGEMENT ACT 2015? Could you please explain? They are referred to in SECT 258 if an owner does not comply with supplying the Owners Corporation details of their leased unit.
Penalty Units are not explained anywhere within the Strata Scheme act, and when we called NSW Fair Trade, they could not provide any more information.
Due to a confrontational unit owner not complying with this part of the Strata Scheme Act, we need to explore this potential Penalty Unit mechanism. Can we use these to make an uncooperative lot owner comply?
So we can resolve this issue, any information on Penalty Units would be very appreciated.
Answer: In NSW, the term ‘penalty units’ refers to the monetary amount for a fine obtained by multiplying $110.00 by that number of penalty units.
The term ‘penalty units’ refers to the monetary amount for a fine obtained by multiplying $110.00 (or the amount prescribed by the relevant legislation), by that number of penalty units.
In New South Wales, ‘penalty units’ refers to the monetary value for a fine obtained by multiplying $110.00, by that number of penalty units. The monetary value for a penalty unit relating to NSW offences is prescribed by section 17 of the Crimes (Sentencing Procedure) Act 1999.
Using the example of s 258 of the Strata Schemes Management Act 2015, a single breach under this section results in a maximum of 5 penalty units, which equates to $550.00. However, the owners corporation does not have the power to issue a penalty notice (or a fine), if someone is found to be in breach of this section.
The owners corporation may apply to NSW Civil and Administrative Tribunal to seek an order for the offending person to pay up to the maximum penalty of 5 penalty units (ie. $550.00) in this scenario.
Another consideration is to resolve any minor disputes using internal dispute handing processes that can be set up by the owners corporation.
This post appears in the February 2021 edition of The NSW Strata Magazine.
Yuhao Gu Omega Legal E: info@omegalegal.com.au P: 0402 990 108