Question: Our body corporate has changed levy payment due dates. Should the committee provide an explanation and consider the potential impact for owners?
Our body corporate mentioned the following in the budget and AGM minutes: “All levy payment due dates will align with period dates as of October 2024 onwards for all levies struck”. The note did not explain that levy payments would be brought forward by 30 days. Should the committee have provided an explanatory note including the consequences of the change? Is a change of levy due date legal?
Answer: It may be best if there was a clear communication to explain the change, the impact, and why.
The levy due dates are set as per the relevant motions. If these are approved, I don’t see an issue with a change of dates.
If you are being asked to approve the motions, I suppose you could vote no and perhaps provide the body corporate with a reason why.
Most commonly, you might see a change in dates like this when a scheme changes to a new management agency. Different companies have different processes and will present motions to reflect their internal systems. If you haven’t changed agencies for a long time or changed to agencies that use the same schedule, it is not surprising that the collection dates have remained constant for a long time. However, there is no particular reason for this to be the case. The levy motions are year to year, and the due dates can vary based on the scheme’s and organisation’s needs. A simple example is that while most schemes have quarterly due dates, others only collect levies twice or three times a year.
Still, I can understand that it may be confusing from an owners perspective and making changes like this could easily cause some upset and problems with payments if people are used to a fixed schedule. It may be best if there was a clear communication to explain the change, the impact, and why. If that is not forthcoming, you could consult with the committee about the matter.
William Marquand
Tower Body Corporate
E: willmarquand@towerbodycorporate.com.au
P: 07 5609 4924
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