straita

Levies & Funds

What happens if I don't pay my strata levies?

Short answer

If you don’t pay your levies you’ll generally be charged interest on the overdue amount, you usually become “unfinancial” and lose your vote on most matters until you catch up, and the owners corporation can act to recover the debt. NSW also has hardship rules — including the right to ask for a payment plan — if you genuinely can’t pay on time.

What happens if you fall behind

  • Interest accrues on the overdue levy at the rate set by the Act, unless the owners corporation resolves to waive it.
  • You become unfinancial. An owner in arrears generally can’t vote on ordinary matters at a meeting until the debt (and any interest) is paid — you keep your vote only on matters needing a unanimous or special resolution.
  • The debt can be recovered. The owners corporation can pursue unpaid levies as a debt, including through the courts, and may recover reasonable recovery costs on top.

If you’re struggling to pay

Falling behind isn’t the end of the road. Current NSW rules require the scheme to provide hardship information with levy notices and to consider a request for a payment plan fairly. The simplest move is to contact the committee or manager early and ask about a plan, rather than let interest and recovery costs build. The scheme generally can’t pursue the debt while you’re keeping to an agreed plan. (These hardship and payment-plan rules were reformed recently — check the current detail with NSW Fair Trading.)

Why levies aren’t optional

Levies fund the whole scheme — insurance, repairs, shared utilities. When one owner doesn’t pay, everyone else effectively covers the gap, which is why schemes are expected to chase arrears. Paying on time keeps you financial, keeps your vote, and avoids interest.

Seeing arrears early, from both sides

An owner shouldn’t be surprised by a recovery notice, and a committee shouldn’t discover a shortfall months late. Straita shows a committee exactly who’s behind and by how much, applies interest and hardship steps in the right order, and keeps the record straight — so a self-managed scheme handles arrears fairly and early, instead of letting a small miss turn into a legal fight.

Primary sources