This article discusses the legal timeframe in NSW for commencing levy recovery, which can only begin one month after the due date.
Question: Why are levies due on the first day of the new quarter instead of the last day of the previous one? When can we begin levy recovery?
In our scheme, levies are due on the first day of the month following the quarter. We must wait until the end of the month to confirm that all owners have made their payments. Why can’t the due date be set as the last day of the previous month instead? Is this timing required by law or government regulation?
Answer: In NSW, levy recovery action can only begin one calendar month after the due date, regardless of what the due date is.
It’s a legislative requirement. It’s actually in the Strata Title Management Act 2015. If your levy is due on 1 October, the law states you can’t commence any recovery proceedings or demand payment for one month. The Interpretation Act defines ‘one month’ as being one calendar month. If the levy was due on 30 September, you still couldn’t take action on an unpaid levy until 30 October. The due date itself doesn’t impact the rule.
In Victoria, if the levy is due on 1 October and payment hasn’t been made by that date, levies are classed as outstanding.
Petra Lohmann
Bugden Allen
E: petra@bagl.com.au
P: 02 9199 1055
Nancy Torry
Bugden Allen
E: nancy@bagl.com.au
P: 02 9199 1055
This post appears in Strata News #766.
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Read next:
- NSW: Q&A Special Levies, Levy Payments and Overdue Levies
- NSW: Q&A Strata levy increases – how much and how often?
- NSW: Inequality in Staged Developments: Strata Levies
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