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Hi
We have a special levy for capital works due in 2 equal instalments with a due date of 1 October 2022 and 1 December 2022.
I am in NSW.
I sometimes pay my quarterly levies 28 days past the due date and don’t get charged interest.
However, I have been charged interest on arrears [calculated to 1 Dec 2022] due on the levies for 1 October on the statement issued today [26 Oct 2022] for the 2nd instalment due 1 December 2022.
I plan to pay the special levy Thursday 27 Oct 2022 that were due on 1 October 2022.
Given that some past levies have been paid late as above [ & paid under 30 days from due date] without interest being charged, can the strata manager charge interest on a special levy for payment less than 30 days past the due date ?
thanks in advance
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I’m in Vic. I always thought it was almost discretionary for the strata manager to consider interest on overdue levies. The one time I was going to be late I let my SM know in advance and gave her an approximate time of payment – it was due 31 December and I was going to pay on 14 January – she was fine with that approach. I think the key might be to discuss with the strata manager to see if they can work out a payment schedule that suits you and is ok with the committee? (So long as the OC gets the money in full and it’s not too delayed, I don’t see why they would say no).
The other complication for you might be that you are not allowed to vote at the AGM if you are in arrears on the date.
I’m in Vic. I always thought it was almost discretionary for the strata manager to consider interest on overdue levies.
Not in NSW. There the 10 per cent late payment charge is mandatory but may be waived by an owners corp decision at a general meeting.
The question is, shouldn’t penalties apply from the last day of the 30 days’ grace given after the due date. And I would say yes, unless there are special rules for special levies (that I don’t know about).
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Thinking about this a bit more, why are you waiting until the last day to pay your levies?
Are you really comfortable about your neighbours carrying your financial commitments for what amounts to almost 10 percent of the year?
Is this a silent protest at a perceived injustice? Maybe that’s why they’ve hit you early with the penalty interest.
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