This topic is going round and round in circles and is becoming pointless. So, for anyone who wants to know, here is what we have established so far.
1. There is nothing in strata law that specifically says when penalty interest kicks in — the due date or the end of the grace period.
2. The simplest way to avoid trouble is, as many strata managers do, to err on the side of safety and start calculating interest at the end of the grace period.
3. Some strata managers calculate the interest from the due date – that fact that they do this and no one seems to care is an indication of how relatively unimportant this is.
4. By not charging penalty interest for the grace period of an overdue levy payment of, say, $1000, the strata manager is ‘costing’ the owners corp approximately $8.50. How much the owners corp would have to pay in additional fees if an owner challenged paying interest from the due date at the CTTT could be 100 times that or more.
5. Therefore even if logic suggests otherwise, and the law is unclear, common sense dictates that you are better off charging penalty interest from after the end of the grace period.
THIS TOPIC IS NOW CLOSED