Question: Can our committee request all levies be paid within 30 days from receipt of invoice?
Our Committee recently issued a letter stating that they have decided all strata fees have to be paid within 30 days from receipt of invoice. Can this be enforced?
If I do not pay my levies on time and I become unfinancial, what does this mean?
Answer: The dates that the levies fall due are voted on by the lot owners and enshrined at the annual general meeting of the strata company.
After passing the budget at your annual general meeting, you then approved the levy schedules and the dates that the levies are to be raised and fall due. In the end, the owners vote on that generally quarterly, (some schemes we actually see by-annually and some schemes we actually see annual levies) but those dates are enshrined at the annual general meeting of the strata company.
You are aware when the levies for due by either reading the minutes or attending the annual general meeting of the strata company.
It’s not 30 days from receipt of the invoice, it’s actually the day that the levy determines its due and payable. In most instances, a strata manager would issue a levy three to four weeks before it’s due but the owner has the responsibility to pay that before the levy is due and then after that date, yes, it will incur interest. The current prescribed rate is 11% unless the Strata company has passed a motion that determines a lesser rate. Yes, the Strata company can then start undertaking Debt Recovery procedures. In saying that, it is encouraged that they have a bylaw to assist that debt recovery, or at least as a minimum pass emotion at each Annual General Meeting detailing what those Debt Recovery procedures may be.
If at a general meeting, you are unfinancial, you’re limited on your capacity, to vote on ordinary resolutions and special resolutions. You do need to be financial to be able to vote on the motions. It doesn’t preclude you from voting on unanimous resolutions and resolutions without dissent.
Ultimately, the strata company relies on its owners to pay the levies to assist it in continuing to operate. It’s very important that the strata company is able to get that money. There were a lot of concerns early last year when COVID hit that we would see an increase in debtors, but you’re talking to my colleagues across Australia there isn’t really any evidence of that at the moment. It is really important that the Strata company does have means to be able to breach owners if they’re not paying their levies.
This post appears in Strata News #513.
Scott Bellerby B Strata E: scott.bellerby@bstratawa.com.au P: 08 9382 7700