Topic: Strata levies payment plans a challenge for all

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06/11/2025 at 7:09 pm #81850 Reply | Quote
Jimmy-T
Keymaster
Levies debt payment plans offer hope to the hard-up but a challenge to strata schemes on tight budgets.

[See the full post at: Strata levies payment plans a challenge for all]

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14/11/2025 at 2:17 pm #81972 Reply
kaindub
Flatchatter
Is it really such a challenge?

As mentioned in the article , payment plans can be refused if it leaves the finances of the OC in the red. The state of the finances is readily established from the balance sheet of the OC.

Secondly, payment plans (IMHO) can’t be a forever situation. Each quarter , for most buildings, a new levy notice is sent and requires payment. The owner would need to propose a payment plan where they “catch up” to regular levies after some time. Its similar to having a loan of any sort. The lender wants the debt paid off at some (agreed) time.

If the lot owner is continually unable to meet their obligations in paying levies, then they would need to consider whether continued ownership is possible.

I understand that the legislation still allows an OC to put the recalcitrant lot owner into bankruptcy (though thats probably the last resort)

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14/11/2025 at 2:27 pm #81974 Reply
Jimmy-T
Keymaster
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kaindub wrote:

Is it really such a challenge?

You wouldn’t think so but a lot of strata achemes operate on very tight margins and minimal levies. One that I am connected with had literally run out of money and had to hold an emergency EGM to approve a new budget.

My current chair used to boast at every AGM that “we have no slush fund” – the clear and fallacious implication being that the previous incumbents has some sort of champagne and cigars funds sloshing around. After a couple of financial near-misses, we now have a “contingency fund”.

A lot of schemes work on the principles of Dickens’ Mr Micawber: “Annual income twenty pounds, annual expenditure nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty-pound ought and six, result misery”. And of course, Micawber was constantly in and out of debtors prison.

So you are correct – for most schemes it will not be a challenge but for those that encounter the perfect storm of late payments, non-payments, multiple negotiations over payment plans and an unexpected expense, it could be a worry.

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Reply To: Strata levies payment plans a challenge for all

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