The problem with the non-imposition of fines was a glitch in the wording of the law which meant that while NCAT could impose fines for breaches of by-laws, they couldn’t do so for the failure to pay the fines, or for failure to obey NCAT orders (if I recall correctly). That meant all miscreants had to do to avoid fines was to ignore them. Anyway, I think that has now been fixed.
As far as paying fines to the Owners Corp, I recall a section of the Act that established that principle but I’m damned if I can find it.