This article discusses strata levies financial year change, explaining why levy periods can overlap after a financial year adjustment and what owners should check in AGM minutes and levy motions.
Question: We’ve been invoiced to pay levies for the month of July twice after strata changed the date of our financial year. Why is this?
My strata company issued a levy notice in April for 1 May to 31 July. Strata voted to change the financial year date from end July to end June at the last AGM.
I have just received another levy notice for the strata levy of 1 July to 30 Sept. Why are we paying for the month of July twice? The two invoices are for a similar amount.
When I asked for clarification, the strata company stated that levies are charged on a quarterly basis rather than monthly so we have to pay for July again. This does not seem fair. I also think they are overcharging me based on my unit entitlement! Are we paying double because of the changed date of the financial date?
Answer: If the meeting decided and the minutes read that this month is being double paid then that is correct.
It depends on what was decided on at the meeting. If the meeting decided and the minutes read that this month is being double paid then that is correct, if it doesn’t then it’s not correct.
You will need to check the levy contributions motion and dates on the minutes. Whether either way is technically right or wrong is another question altogether and the act doesn’t really have a provision for this.
As for you unit entitlements; you will need to refer to your strata plan and calculate from what is mentioned on the meeting minutes in that same motion.
This post appears in Strata News #577.
Jordan Dinga Abode Strata E: abode@abodestrata.com.au P: 08 9368 2221