Early issue of levy notices – new strata laws
WHY AM I RECEIVING LEVY NOTICES SO EARLY?
Levy notices are now being sent up to five weeks out from the due date.
New strata legislation (Sect 83, Strata Schemes Management Act 2015) has prescribed that the due date of a levy notice “must be at least 30 days after the notice is given”. Therefore in order to ensure that levy notices are received at least 30 days before their due date, levy notices are now sent out 5 weeks in advance.
WHAT IS MY RESPONSIBILITY AS A PROPERTY MANAGER?
If you are responsible for the payment of an owner’s levies, here are three things you need to know:
1. When to expect levy notices to manage a lot’s cashflow. You can find levy cycle information in the minutes of the last AGM, or you can ask your strata managing agent. The three options for quarterly cycles are:
- January, April, July & October
- February, May, August & November
- March, June, September & December
2. You can request to receive the levy notice via email. This will avoid any risk of it going missing in the post.
3. If you haven’t received the levy notice 30 days before the due date, then call us to get another sent so you have ample time to pay it without attracting interest or additional charges.
The AGM notice contains compulsory motions so that the owners can:
- set the contributions by adopting the budgets for the administrative and capital works funds
- determine when the levies will fall due
The levy motions on the AGM Notice must now have the 1st due date at least 30 days from the date of the Notice (found on the front page of the Notice).
CHANGES TO A QUARTERLY CYCLE
Owners, property agents, and strata managing agents would all prefer to have the normal quarterly cycle of levy payments. However, changes to these cycles may occur if:
- an AGM is delayed,
- a special levy has been determined, or
- the owners have made some other levy decision at the general meeting.
The good news is that decisions on levies are now made at general meetings where all owners are invited to attend.
DO YOU HAVE OTHER QUESTIONS ABOUT THE NEW STRATA LAW?
We are happy to answer any questions you may have on the new strata laws or provide you with an information snapshot. We’ve published many information guides on our website to assist. Feel free to give our Head Office a call on 02 8198 8500 or send an email to email@example.com if you have a particular question that you’d like to clarify.