NSW: Strata & Community Title Update 2025 – Part 5 – Finances & Levy Recovery Process

This article is part of a series by Allison Benson from Kerin Benson Lawyers detailing NSW strata law changes in 2025.

This is part five of a six part series discussing the strata and community title updates in 2025. This post discusses the changes to finances particularly the requirements regarding payment plans and the levy recovery process.

Catch up on the previous editions here:

• Part 1: commissions and disclosures
• Part 2: Accessibility Infrastructure
• Part 3: Strata & Association Committees
• Part 4: Building & Facilities Manager’s Duties

This is part five of a six part series discussing the strata and community title updates in 2025. This post discusses the changes to finances particularly the requirements regarding payment plans and the levy recovery process.

These changes will be brought about by the Strata Schemes Legislation Amendment Act 2025 when it takes effect. Some minor changes have taken effect but the changes discussed below have not yet done so. It is expected that the changes will come into effect from mid 2025.

Contributions & Payment Plans

Levy notices must contain information prescribed by the Commissioner: s83(1A). This is expected to be payment plan and financial counselling service information. Payments plans continued to be limited to 12 months with provision for further plans to be made after the initial 12 month plan.

Schemes cannot pass a blanket resolution to refuse payment plans but can refuse in particular cases: s85 SSMA. Payment plans can be reasonably refused: s85(5A) SSMA. There is provision for the regulations to prescribe what constitutes a reasonable refusal: s85 (5B) SSMA.

Payment plan eligibility, the form of request, evidence required and how the request is to be stored, secured, used and disposed of may be the subject of the regulations: s85(6) SSMA. The Tribunal may make order a payment plan be made following an unreasonable refusal to accept a plan: 85(9) SSMA.

Debt recovery

Where payment plans are entered and complied with schemes may not take debt recovery action: s86(6) SSMA.

When payments are received they must be applied to contributions in order of due date, then interest then the schemes expense (if an order was made to enable this) unless an order states otherwise: 86(7) & (8). Notice of debt recovery action will be increased from 21 days to 30 days: s86 SSMA.

In a key change to existing practices, schemes may not recover their reasonable costs of debt recovery action unless they have offered the option of a payment plan and the Tribunal or a court so orders: s 86(2AA) SSMA.

Although references are made throughout to changes to the SSMA, these changes also affect the Community Land Management Act 2021 (NSW) (“CLMA”).

Allison Benson
Kerin Benson Lawyers
E: allison@kerinbensonlawyers.com.au
P: 02 4032 7990

This is general information and should not be considered to be legal advice. You should obtain legal advice specific to your individual situation.

This post appears in Strata News #741.

This article has been republished with permission from the author and first appeared on the Thoughts from a Strata Lawyer… website.

Have a question or something to add to the article? Leave a comment below.

Read next:

• NSW: Q&A How do we Deal with Strata Manager Complaints and Bullying?
• NSW: Cost Recovery By-Laws And Strata Schemes: Are They Valid?
• NSW: Strata & Community Title Update 2025 – Part 1 – commissions and disclosures
• NSW: Strata & Community Title Update 2025 – Part 2 – Accessibility Infrastructure
• NSW: Strata & Community Title Update 2025 – Part 3 – Strata & Association Committees
• NSW: Strata & Community Title Update 2025 – Part 4 – Building & Facilities Manager’s Duties

Visit our Your Strata Levies OR NSW Strata Legislation pages.

Looking for strata information concerning your state? For state-specific strata information, take a look here.

Are you not sure about some of the strata terms used in this article? Take a look at our NSW Strata Glossary to help with your understanding.

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