The NSW government this week boosted its payment plan strategy for owners who have fallen behind with their strata bills by issuing the forms they’ll need to apply for leeway on their levies, and advice on how to get on top of their debts.

But it could present a challenge for strata schemes that are operating on very tight budgets and for whom non-payment of levies, especially by multiple owners, would create a significant hole in their finances.

NSW Fair Trading has launched the new campaign on Monday with resources to support apartment owners struggling to pay strata levies, including an explanatory video outlining available options.

The initiative comes as financial hardship increasingly affects strata property owners across the state, with changed circumstances including job loss, illness, family disruption and reduced work hours forcing many to fall behind on quarterly levy payments.

Under the new support framework, owners can arrange payment plans lasting six to twelve months to repay overdue levies in instalments, though they must continue paying future levies on time while working through their arrears.

The program was developed with input from the Strata Debt Recovery Working Group, which includes representatives from key organisations in the sector

However, the payment plan system could create significant challenges for strata schemes operating on tight budgets.

Owners corporations can only reject payment plan requests in limited circumstances, such as when accepting the plan would cause insufficient funds in the administrative or capital works fund.

This could leave many schemes in a difficult position—legally required to accommodate struggling owners while potentially facing shortfalls for essential maintenance, repairs and operational costs.

Payment plan requests must be submitted through the strata manager or committee for approval by simple majority vote at an owners corporation meeting, with the owner’s arrears becoming visible to other owners when financial reports are provided at annual general meetings.

The new system allows strata committees to waive interest on overdue levies and consider the reasonableness of proposed plans alongside their impact on scheme finances.

If owners corporations refuse payment plans and owners believe the decision was unreasonable, they can apply for NSW Fair Trading’s free mediation service, and ultimately appeal to the Tribunal.

The National Debt Helpline offers free, confidential financial counselling on 1800 007 007 to help owners manage their expenses and strata levy payment difficulties.

You’ll find more information about the scheme, the obligations for strata schemes and the help for apartment owners HERE.