NSW: If an owner is on a payment plan, can they vote?

Question: Can an owner on a payment plan vote at general meetings and serve on the strata committee?

We have an owner on the committee who is on an approved payment plan for unpaid levies. Can they vote at general meetings and remain on the strata committee while they’re on a payment plan?

Answer: Owners on a payment plan remain unfinancial until they pay all outstanding levies, limiting their voting rights and strata committee re-election eligibility.

A lot owner is considered unfinancial while they are on an approved payment plan, until they pay all outstanding levies and current contributions in full.

Being on a payment plan does not change the owner’s status as unfinancial under the Strata Schemes Management Act 2015 (NSW) (the Act). It simply formalises the repayment of outstanding levies.

Practically, this has two main implications:

1. An unfinancial owner is not entitled to vote on motions at general meetings. Unless specific exceptions apply under the Act, voting rights are generally restricted to financial owners, .
2. An unfinancial owner may remain on the strata committee, whilst they remain unfinancial, if they were elected while financial. However, they cannot be re-elected at the next AGM unless they are financial at the time of nomination and election.

Why this issue matters

Payment plans are an important support tool for owners who may be experiencing financial difficulty. However, they do not remove the underlying debt or change governance requirements.

Owners can become confused if they assume that entering into a payment plan restores their full rights. The Act is clear about the distinction between an owner’s financial status and their participation in decision-making.

Maintaining this distinction helps ensure fairness across the scheme and protects the integrity of voting and committee elections.

Next practical steps

If your scheme is dealing with arrears and payment plans, there are several steps the committee can take to manage this appropriately.

1. Confirm the financial status of owners before any meeting. The strata manager or treasurer should provide a list of financial and unfinancial owners before issuing voting papers or conducting votes or elections.
2. Be sure to communicate clearly with owners who are on payment plans. Owners should understand how their financial status affects voting rights and their future eligibility for the strata committee.
3. Manage committee composition proactively. If a current committee member becomes unfinancial, note that they may remain in the role until the next AGM, but will need to be financial to stand again and to vote at committee meetings in the interim.
4. Properly document payment plans. Approved plans should be in writing, should be realistic, and monitored regularly to ensure they comply.

By having a structured and transparent approach to arrears and voting rights, your owners corproation ensures that payment plans support owners in financial difficulty, while maintaining fair and compliant decision-making.

This post appears in the June 2026 edition of The NSW Strata Magazine.

Leanne Habib
Premium Strata
E: info@premiumstrata.com.au
P: 02 9281 6440