Strata Base | Levy Information
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USEFUL INFO

Levy Information

Owners Corporations Act covers deals with financial management and provides for:

  • the powers of owners corporations to levy and recover fees and charges, to borrow and invest, and to require lot owners to carry out works on their lots
  • the liability of lot owners for fees and charges, and
  • the obligations of owners corporations regarding accounts and audits, maintenance plans and funds, repair and maintenance of the common property and services, changes to common property, and insurance.
  • An owners corporation can only levy annual fees (covering general administration, maintenance and repairs, and other recurrent obligations of the owners corporation) on the basis of ‘lot liability’.
  • Lot liability is specified on the plan of subdivision, and sets out the proportion of general and administrative expenses to be paid by the owner of the lot. Often, but not necessarily, the lot liability is proportionate to the size or value of a lot, relative to the other lots.
  • The levying of fees on the basis of lot liability is generally considered to be administratively convenient, and easy to determine.

Example of an Annual Levy
Annual fees cover general administration, maintenance, insurance and other ongoing costs. Lot owners are charged their share of annual fees according to their lot liability. For more information on lot liability.
Example of an Special Levy
Special fees or charges cover extraordinary or unexpected expenditure; for example, to urgently repair the building or to cover other costs such as legal action against the owners corporation.
Late fees on payments and charges
Section 29 of the Owners Corporations Act allows owners corporations to impose penalty interest on late payments of fees or charges, if authorised by a resolution at a general meeting.

Section 31 sets out the process for serving a fee notice, including that the fee notice must have details of the dispute resolution process that applies under the owners corporation’s rules in respect of disputed fees and charges. Section 32 sets out the process for serving a final fee notice, which must be complied with before proceeding to VCAT or a court.