Payment plans, interest and recovery costs, and where a dispute goes
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Strata levies have no hardship program. What exists is a payment plan (in NSW an owners corporation generally cannot refuse one; elsewhere it is at the owners corporation's discretion), a possible waiver of interest or recovery costs, and a free mediation or conciliation step before any tribunal hearing. Confirm the detail for your state with a financial counsellor or your state's strata body before relying on it.
This is general information, not financial or legal advice. For help with your specific situation, call the National Debt Helpline on 1800 007 007 (free, confidential).
An owner behind on levies can ask the owners corporation or body corporate for a plan to repay the overdue amount in instalments alongside ongoing levies. In NSW there is a published request form, and the owners corporation generally must not refuse to enter into payment plans except in particular cases. Elsewhere, put the request in writing to the committee or the strata manager.
Overdue levies usually attract interest, and the owners corporation can add its reasonable costs of recovering the debt. In Queensland the body corporate may waive the penalty or recovery costs, in whole or part, for special reasons. Ask for a waiver at the same time as the payment plan.
An owners corporation generally has to send a notice before it starts recovery action. In NSW that is at least 30 days' written notice, and no recovery action can be taken while you are keeping to an agreed payment plan. If you receive a notice, that is the moment to write and propose a plan.
Strata disputes have a free or low-cost mediation or conciliation step. In NSW it is through NSW Fair Trading and is required before the tribunal for most disputes. In Queensland it is through the Commissioner for Body Corporate and Community Management. In Victoria, Consumer Affairs Victoria and the tribunal's owners corporations list handle disputes.
Unpaid levies, interest and recovery costs are enforceable against the owner. In Queensland they are also enforceable against a later owner of the lot until paid. This is why levies rank ahead of unsecured debts for an owner-occupier.
Legal Aid and community legal centres can advise on a levy dispute. A financial counsellor on the National Debt Helpline (1800 007 007) can help you work out what you can afford to offer.
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