Levy Administration
What are levies / contributions?
Levies/Contributions are amounts paid by owners of a strata or community title scheme that are pooled to maintain the safety, upkeep, market value and enjoyment of scheme for all owners. The amount of levies/ contributions collected from owners are decided at each annual general meeting of the scheme.
There are three kinds of levies:
- Administrative Funds These cover the day to day expenses such as common area cleaning, gardening, insurance, minor repairs, tax return fees, bank charges, utility costs for common use areas and strata management fees.
- Sinking Funds These cover planned and unplanned expenditure on maintenance, replacement and repairs.
- Special Levies These are raised to cover significant or unexpected works that cannot be covered by the administrative or sinking funds.
Without levies, the owners corporation could be liable for large legal claims where unrectified defects cause damage to person or property. Levies help protect the value of the property asset of owners by maintaining the scheme in good condition.
Levy Notices
Levy notices are sent to owners as per the resolved motion at the Annual General Meeting. When due, levies are to be paid into your scheme’s trust account. The due date is noted on the front of the levy notice.
Levy Payments
The various payment options offered by BCS are listed on the reverse of your levy notice. Please note due to safety and security reasons, cash payments are not accepted at our branches.
- BPAY
- Phone from your pre registered bank account
- At any Australia Post outlet
- Deft Online
- Credit Card – A merchants fee will apply
In Queensland, the Body Corporate and Community Management Act 1997 provides that interest may accrue on unpaid amounts up to a maximum rate of 2.5% per month after the due date, if approved by the body corporate.
Levies in Arrears – automated debtor management process
BCS recognises the importance of full collection of levies and in July 2010 introduced an automated debtor management process. We are proud of this industry best practise and it ensures all outstanding levies are followed up in a methodical and fail-proof manner.
BCS will pursue owners in levy arrears on behalf of the schemes managed in the following methods in each state, using our automated debtor management and in conjuction with Kemps Petersons Receivables:
New South Wales
Level 1 – A Reminder Levy Notice will be issued to all owners 35 days after the levy falls due and that levy is still outstanding.
Level 2 – If levies remain in arrears a first reminder letter will be issued by BCS to advise owners of their arrears situation. The owners will be charged an administration fee.
Level 3- If no reply is received by BCS to the intial letter and the account continues to be in arrears, a second letter will be sent to owners advising they have 14 days to pay before further action is taken. A further administration fee is charged to the owner.
Level 4 – In the event no response is received to this second letter, the owner (with the executive committee of the plan’s consent) will receive a mercantile letter from Kemps Petersons Receivables. If debt continues to be outstanding then legal action will commence. It is important to note, all costs are charged to the owner in arrears. Initially, the strata plan or community title will pay all associated costs, however, all monies paid are usually recovered when settlement of arrears is received.
Queensland
In Queensland, the Body Corporate and Community Management Act 1997 provides that interest may accrue on unpaid amounts up to a maximum rate of 2.5% per month after the due date, if approved by the body corporate.
Level 1 – A Reminder Levy Notice will be issued to all owners 15 days after the levy falls due and that levy is still outstanding.
Level 2 – If levies remain in arrears a first reminder letter will be issued by BCS to advise owners of their arrears situation.
Level 3 – If no reply is received by BCS to the initial letter to the owner and the account continues to be in arrears, a second letter will be sent to owners advising they have 14 days to pay before action is taken.
Level 4 – Should the owner in arrears make no response or payment, then BCS will request from committee approval to proceed to legal action. If action is required, Kemps Petersons Receivables will forward the case to Donnelly & Associate Lawyers to proceed with legal action. At this point a general debtor will be set up and attached to the plan to allow all charges relating to legal costs to be allocated to the general debtor.
Victoria
BCS, in conjunction with Kemps Petersons Receivables, pursue owners in arrears on behalf of the schemes in the following nature:
Level 1 – If levies are in arrears over 15 days then a first reminder letter will be issued to the owner with the costs being allocated to the owners account.
Level 2 – If debt continues to be outstanding for a further 14 days a Final Fee Notice will be issued. An administration cost will be allocated to the owners account.
Level 3 – If no response is received a request to authorise going to Victorian Civil and Administrative Tribunal (VCAT) will be asked for and if given, the case will be referred to Kemps Petersons Receivables.
Want to know more about your levies? Download our BCS Smart Strata Levies fact sheet.