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Unpaid levies – the new rules

7 October 2016

Over 90 reforms are being made to the strata laws on 30 November 2016 in a bid to modernise the legislation, reduce red tape, avoid disputes and support the sector.  

One of the changes will allow lot owners the right to request an owners corporation agree to a payment plan for any levies in arrears.

Faiyaaz Shafiq, Senior Lawyer with JS Mueller & Co Lawyers, said that currently there are no legal rights for lot owners to request a levy instalment payment plan from an owners corporation. 

Although an instalment plan can sometimes be agreed by an owners corporation in appropriate cases. However under the new strata Regulation a lot owner will have the right to request the owners corporation hold an extraordinary general meeting (EGM) to discuss agreeing to a payment plan for any levies in arrears. 

As a result of the request the lot owner may have to pay the costs of holding the EGM, although sometimes an owners corporation can approve a plan at an AGM. 

Faiyaaz said: “It’s important to note that by holding an EGM it is not guaranteed that the request for the payment plan will be approved.

“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. 

“Conversely, an owners corporation in a deserving and genuine case may decide to accept a request for a payment plan provided the owners corporation is of the view that the plan is more likely to be adhered to.”

He added that if a request for a payment plan is unreasonably refused the lot owner can take legal action against a refusal and seek orders from a Court of Law or Tribunal forcing the owners corporation to enter into a payment plan. 

To find out more information about the new levy collection laws, click here.