Strata NSW: Unpaid Levies…The New Rules!

This article about unpaid levies in NSW has been supplied by Faiyaaz Shafiq, Senior Lawyer J. S. Mueller & Co Lawyers.

Current Position

Under the current law there are no legal rights for lot owners to request an instalment payment plan from an owners corporation should they fall behind in their levy payments – although an instalment plan is sometimes agreed to by an owners corporation in an appropriate case.

New Position

As of 1 December 2016 the new laws will give a lot owner the right to request an owners corporation to agree to a payment plan for any levies in arrears. Before the owners corporation can accept a payment plan they will need to have such a request properly approved at a general meeting.

The lot owner will have to do the following:
1.   Make a request to the owners corporation to hold an EGM at which the owners corporation will consider the request of the lot owner to enter into a payment plan.
2.   The lot owner may be required to pay the costs of holding the EGM at which the owner wants the payment plan to be approved.
3.   The owners corporation will then consider the payment plan at the EGM.
4.   Alternatively, an owners corporation can approve a plan at an AGM.


It’s important to note that by holding an EGM it is not guaranteed that the request for the payment plan will be approved as the entry into a payment plan is a discretionary matter for the owners corporation and it is not a mandatory requirement that such a plan will have to be accepted.