#25050
Jimmy-T
Keymaster

    The simple answer, in NSW, is no.

    If that action was brought under Chapter 5 of the Act which relates to disputes and orders by the tribunal, the Owners Corp can’t pay costs out of the sinking or admin funds and must collect a special levy which excludes the successful party

    This is what section 230 says.  There may be other conditions in the order, or is may have been raised under a different part of the Act (unlikely)  but this is the basic rule.

    230   Restrictions on owners corporation levying contributions for expenses

    (1)  An owners corporation cannot, in respect of its costs and expenses in proceedings brought by or against it under Chapter 5, levy a contribution on another party who is successful in the proceedings.

    (2)  An owners corporation that is unsuccessful in proceedings brought by or against it under Chapter 5 cannot pay any part of its costs and expenses in the proceedings from its administrative fund or sinking fund, but may make a levy for the purpose.

    The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.