Australia
Strata, Owners Corporation and Body Corporate Levies in Australia
Every Australian strata, owners corporation or body corporate scheme raises money from owners the same basic way, contributions set at a general meeting and applied to defined funds, but the notice period, interest rules and recovery process for an overdue levy differ by state.
Information last verified on 21 July 2026 against the primary legislation. This page presents general legal information, not legal advice.
Jurisdiction scope: This page covers how levies (contributions) are raised, and what happens when one is not paid, for strata schemes, owners corporations and body corporates in New South Wales, Victoria, Queensland, Western Australia and South Australia, verified 21 July 2026. Queensland's levy machinery sits mainly in scheme-specific regulation modules rather than in the Act itself, so this page describes the Act-level framework only; see the linked state page for further detail where available.
Two funds, almost everywhere
Most Australian strata Acts split what a levy pays for into two categories. New South Wales' administrative fund covers day-to-day costs like insurance and routine maintenance, while its capital works fund is built up against a required 10-year plan for larger, less frequent items such as repainting or replacing a roof. Western Australia's section 100 uses the same structure under different names, an administrative fund and a reserve fund, and requires "designated" strata companies to maintain the reserve fund specifically. South Australia's Community Titles Act 1996 requires a community corporation to establish an administrative fund and a sinking fund under section 116, with non-recurrent expenditure drawn from the sinking fund and everything else from the administrative fund. Victoria takes a slightly different approach: section 23 of the Owners Corporations Act 2006 (Vic) lets an owners corporation levy annual fees and, separately under section 24, extraordinary fees and charges for anything outside the ordinary annual budget.
How a levy is set
A levy is not something the committee or council decides on its own in any of the jurisdictions covered here. In South Australia, section 114 of the Community Titles Act 1996 (SA) requires the amount to be fixed by ordinary resolution "in general meeting," and expressly states it must not be fixed by the management committee. Contributions are then split in proportion to each lot's lot entitlement, unless a unanimous resolution says otherwise. New South Wales similarly requires an owners corporation to estimate its administrative and capital works fund needs at each annual general meeting under section 79. Western Australia's contributions are raised "in proportion to the unit entitlements of their respective lots" unless the scheme's by-laws set a different basis. The pattern across every state is the same: an ordinary or general meeting resolution, tied to unit or lot entitlement, not an arbitrary committee decision.
What happens if a levy is not paid on time
No Australian strata Act treats an unpaid levy as forgiven; each gives the corporation defined tools to pursue it, subject to notice requirements the corporation has to follow. In New South Wales, section 85 lets simple interest accrue at 10% a year (or a regulation-prescribed rate) on a contribution unpaid more than a month after its due date, unless the owners corporation resolves not to charge it. Section 86 then allows the Tribunal to order payment, or lets the owners corporation recover the debt directly in a court without a Tribunal order, but only after giving the person at least 30 days' written notice of the proposed recovery action, and not while the person is complying with an agreed payment plan. In Victoria, section 29 allows penalty interest on arrears, but only if a general meeting resolution authorises it, and section 30 lets the owners corporation recover money owed as a debt in a competent court, subject to first issuing a fee notice and then a final notice. Western Australia's section 100(1)(d) lets a strata company recover, by court action if needed, money it spent on repairs or work required by a written law. None of this describes any particular levy as not payable; it describes the process a corporation has to follow to pursue one.
New South Wales' 2025 payment-plan changes
The Strata Schemes Legislation Amendment Act 2025 (NSW) made several changes to sections 85 and 86 that are confirmed to be in force as at the date this article was verified. A payment plan agreed between an owner and the owners corporation is now capped at 12 months, though a further plan can be agreed after that. An owners corporation must not, by resolution, refuse to enter into payment plans generally, though it may still refuse in a particular case. The notice period an owners corporation must give before taking recovery action increased from 21 to 30 days. A further change, inserting a new limit on when an owners corporation can recover the reasonable expenses of collecting an unpaid contribution (broadly, only after having first offered a payment plan and only under a Tribunal or court order), had not commenced as at the date this article was verified, and this page does not describe it as current law. See strata law in Australia for how this staggered rollout fits into the wider 2025 amendment package, and New South Wales strata law for the full detail on this state specifically.
Other states recover unpaid levies too
Queensland's levy machinery sits mainly in the regulation module chosen for each scheme (the Body Corporate and Community Management Act 1997 (Qld) sets the framework for how a contribution schedule apportions costs between lots under section 94 and related provisions, but the day-to-day interest, discount and recovery mechanics are set out at the regulation-module level rather than uniformly in the Act itself), so this page does not state a specific interest rate or notice period for Queensland. South Australia's section 114 lets a contribution, instalment or interest be recovered as a debt, and makes payment enforceable jointly and severally against both the current and a subsequent owner of a lot, meaning an unpaid levy can follow a lot through a sale in some circumstances. Every jurisdiction reviewed here treats levy recovery as a formal, notice-driven process rather than something that happens automatically or without a defined pathway.
This page is general legal information about strata, owners corporation, body corporate and community title law in Australia, verified on 21 July 2026. It is not legal advice, and it does not cover every situation or every by-law or scheme rule that may apply to a particular development. For advice about a specific dispute, levy or by-law, consult a legal practitioner admitted in the relevant Australian state or territory.
Frequently Asked Questions
What happens if I don't pay my strata levy on time?
It depends on the state, but every jurisdiction gives the corporation a defined process, usually starting with interest and a notice period, before recovery action or a payment plan discussion. In New South Wales, for example, an owners corporation must give at least 30 days' written notice before taking recovery action, and cannot pursue recovery while an agreed payment plan is being complied with.
Can I ask for a payment plan for overdue strata levies?
In New South Wales, yes, and since the 2025 amendments an owners corporation generally must not refuse payment plan requests as a blanket policy, though it can still refuse in a particular case. A payment plan there is capped at 12 months. Other states have their own processes; check the specific Act or the linked state page.
Did the NSW levy recovery notice period change in 2025?
Yes. The notice an owners corporation must give before taking recovery action under section 86 increased from 21 days to 30 days as part of the Strata Schemes Legislation Amendment Act 2025 (NSW).
Can an owners corporation charge interest on unpaid levies?
In New South Wales, yes, at up to 10% a year unless the owners corporation resolves otherwise. In Victoria, only if a general meeting resolution specifically authorises charging penalty interest.
What are the two main strata funds called in each state?
New South Wales uses an administrative fund and a capital works fund. Western Australia uses an administrative fund and a reserve fund. South Australia refers to administrative and sinking funds. All serve broadly the same purpose: day-to-day costs in one fund, larger and less frequent capital costs in the other.
Does an unpaid levy follow the lot if it is sold?
In South Australia, section 114 of the Community Titles Act 1996 (SA) makes payment of a contribution enforceable jointly and severally against both the owner who incurred it and a subsequent owner. Rules differ elsewhere; this is not a general Australia-wide rule and should be checked against the relevant state Act.
The Law Behind This Article
This article rests on the statutory provisions below, held in our own legal record and retrieved from the official source. Tap a section to read the operative text.
Strata Schemes Management Act 2015 (NSW)
s 79Estimates to be prepared of contributions to administrative and capital works fundsIn forcecited in 3 of our articles
(1) An owners corporation must, not later than 14 days after the constitution of the owners corporation and at each annual general meeting after that, estimate how much money it will need to credit to its administrative fund for actual and expected expenditure—(a) to maintain in good condition on a day-to-day basis the common property and any personal property vested in the owners corporation, and (b) to provide for insurance premiums, and (c) to meet other recurrent expenses. Note. Recurrent expenses would include such regular expenses as insurance, water charges, electricity charges, carpet cleaning, lawn mowing services and the like and minor expenses relating to maintenance of the common property.
Official text (excerpt) · last checked 2026-09-28 · Read the full text in our law library · Verify at legislation.nsw.gov.au
Cited in 4 court opinions in our collectionLatest citing opinion in our collection: 2024
Opinions citing this section in our collection:
- Kimber v Clark in his capacity as trustee of the property of Kimber (Full Court of the Federal Court of Australia 2022, [2022] FCAFC 198)
- [2024] NSWDC 468 (District Court of New South Wales 2024, [2024] NSWDC 468)
- [2023] NSWDC 568 (District Court of New South Wales 2023, [2023] NSWDC 568)
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
Also relied on in: New South Wales Strata Scheme Law: Owners Corporations and NCAT, Who Repairs Common Property in a Strata Scheme in Australia
s 85Interest, discounts on contributions and payment plansIn forcecited in 2 of our articles
(1) A contribution, if not paid when it becomes due and payable, bears until paid simple interest at an annual rate of 10% or, if the regulations provide for another rate, that other rate. (2) Interest is not payable if the contribution is paid not later than one month after it becomes due and payable. (3) However, an owners corporation may by resolution determine (either generally or in a particular case) that a contribution is to bear no interest. (4) An owners corporation may, by resolution at a general meeting, determine (either generally or in a particular case) that a person may pay 10% less of a contribution levied if the person pays the contribution before the date on which it becomes due and payable. (5) An owners corporation and an owner may agree to enter into a payment plan for the payment of overdue contributions. (5A) A request by an owner to enter into a payment plan (the request) may be reasonably refused by the owners corporation. (5B) The regulations may prescribe what constitutes a reasonable refusal in relation to payment plans. (5AA) A payment plan is limited to a period of 12 months but a further plan may be agreed to.
Official text (excerpt) · last checked 2026-09-28 · Read the full text in our law library · Verify at legislation.nsw.gov.au
Cited in 6 court opinions in our collectionLatest citing opinion in our collection: 2024
Opinions citing this section in our collection:
- Renet v The Owner - Strata Plan SP22143 (Federal Court of Australia 2023, [2023] FCA 631)
- [2022] NSWSC 698 (Supreme Court of New South Wales 2022, [2022] NSWSC 698)
- [2024] NSWSC 358 (Supreme Court of New South Wales 2024, [2024] NSWSC 358)
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
s 86Recovery of unpaid contributions and interestIn forcecited in 2 of our articles
(1) The Tribunal may order the owner of a lot in the strata scheme, or other person, to pay a contribution that is payable by the owner or other person under this Act that is not paid at the end of 1 month after it becomes due and payable, together with any interest payable on that unpaid contribution and the reasonable expenses of the owners corporation incurred in recovering those amounts. (2) The Tribunal may make an order under subsection (1) only—(a) on the application of the owners corporation, and (b) if proceedings between the owners corporation and the owner of a lot in the strata scheme or other person are pending before the Tribunal. (2A) An owners corporation may, without obtaining an order under this section, recover as a debt in a court of competent jurisdiction, a contribution not paid at the end of 1 month after it becomes due and payable, together with any interest payable on that unpaid contribution and the reasonable expenses of the owners corporation incurred in recovering those amounts.Note.
Official text (excerpt) · last checked 2026-09-28 · Read the full text in our law library · Verify at legislation.nsw.gov.au
Cited in 9 court opinions in our collectionLatest citing opinion in our collection: 2024
Opinions citing this section in our collection:
- [2024] NSWCA 279 (NSW Court of Appeal 2024, [2024] NSWCA 279)
- [2022] NSWSC 1017 (Supreme Court of New South Wales 2022, [2022] NSWSC 1017)
- [2024] NSWSC 358 (Supreme Court of New South Wales 2024, [2024] NSWSC 358)
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
Body Corporate and Community Management Act 1997 (Qld)
s 94Body corporate’s general functionsIn forcecited in 2 of our articles
(1) The body corporate for a community titles scheme must— (a) administer the common property and body corporate assets for the benefit of the owners of the lots included in the scheme; and (b) enforce the community management statement (including enforcing any by-laws for the scheme in the way provided under this Act); and (c) carry out the other functions given to the body corporate under this Act and the community management statement. (2) The body corporate must act reasonably in anything it does under subsection (1) including making, or not making, a decision for the subsection. Examples for subsection (2) of a body corporate making a decision— • passing a motion by resolution at a general meeting or a committee meeting • not passing a motion after a vote at a general meeting or a committee meeting • owners of lots included in a specified two-lot scheme entering into a lot owner agreement for the scheme (see section 111E (2) ) • owners of lots included in a specified two-lot scheme failing to enter into a lot owner agreement following a request made by one of the owners (see section 111H (3) )
Official text (excerpt) · last checked 2026-09-28 · Read the full text in our law library · Verify at legislation.qld.gov.au
Also relied on in: Queensland Body Corporate Law: The Commissioner, Not QCAT
Community Titles Act 1996 (SA)
s 114Contributions by owners of lotsIn forcecited in 2 of our articles
(1) A community corporation must, in general meeting, fix the amount it requires by way of contributions from the owners of community lots. (2) The amount must be fixed by an ordinary resolution of the corporation and not by the management committee. (3) Subject to this Act, the share of an amount fixed under subsection (1) to be contributed by the owner of each lot is proportional to the lot entitlement of the lot unless otherwise provided by a unanimous resolution of the corporation. (4) A corporation may, by ordinary resolution— (a) permit contributions to be paid in instalments specified in the resolution; (b) fix (in accordance with the regulations) interest payable in respect of a contribution, or an instalment of a contribution, that is in arrears. (5) A contribution, or an instalment of a contribution, is payable on the day specified for payment in a notice served by the corporation on the owner of the lot. (6) The notice must— (a) include information required by regulation; and (b) be served on the owner at least 14 days before the date for payment.
Official text (excerpt) · last checked 2026-09-28 · Read the full text in our law library · Verify at legislation.sa.gov.au
Also relied on in: South Australia Strata and Community Titles: The Magistrates Court
s 116Administrative and sinking fundsIn forcecited in 2 of our articles
(1) A community corporation must establish an administrative fund and a sinking fund. (2) Subject to subsection (3), non-recurrent expenditure1 must be made from the sinking fund and all other expenditure of the corporation must be made from the administrative fund. (3) Expenditure must not be made from a fund to satisfy a financial or other obligation to the owner of a lot who cannot be required to contribute to that expenditure2 or to pay legal costs that the owner of the lot cannot be required to contribute to3, if the expenditure, or part of the expenditure can be traced to a contribution made by the owner of the lot directly or, where he or she is the owner of a secondary or tertiary lot, by way of a contribution made by the secondary or tertiary corporation. (4) Subject to this section, contributions of owners of lots and other money4 received by a corporation must be credited to the administrative or sinking fund according to the purpose for which the money will be used. (5) Money received on sale of assets of a corporation must be credited to the sinking fund.
Official text (excerpt) · last checked 2026-09-28 · Read the full text in our law library · Verify at legislation.sa.gov.au
Owners Corporations Act 2006 (Vic)
s 29Penalty interest on arrearsIn forcecited in 2 of our articles
(1) If authorised by a resolution at a general meeting, an owners corporation may charge interest on any amount payable by a lot owner to the owners corporation that is still outstanding after the due date for payment. (2) The rate of interest charged must not exceed the maximum rate of interest payable under the Penalty Interest Rates Act 1983. (3) The owners corporation may waive the payment of interest in a particular case. (4) The owners corporation must report to the annual general meeting on any decision under subsection (3) to waive or not to waive the payment of interest in a particular case and the reasons for that decision.
Official text (excerpt) · last checked 2026-09-28 · Read the full text in our law library · Verify at legislation.vic.gov.au
Also relied on in: Victoria Owners Corporation Law: Rules, Fees and VCAT
s 30Recovery of money owedIn forcecited in 2 of our articles
(1) Subject to subsection (2), an owners corporation may recover any money owed to the owners corporation in any court of competent jurisdiction as a debt due to the owners corporation. (2) Sections 31 and 32 and Division 1 of Part 11 apply to the recovery of money owed to the owners corporation by a lot owner.
Official text (excerpt) · last checked 2026-09-28 · Read the full text in our law library · Verify at legislation.vic.gov.au
Strata Titles Act 1985 (WA)
s 100Administrative and reserve funds and contributionsIn forcecited in 3 of our articles
(1)A strata company must — (a)establish a fund (an administrative fund) for administrative expenses that is sufficient in the opinion of the strata company for the control and management of the common property, for the payment of any premiums of insurance and the discharge of any other obligation of the strata company; and (b)determine the amounts to be raised for payment into the administrative fund; and (c)raise amounts so determined by levying contributions on owners of lots — (i)in proportion to the unit entitlements of their respective lots; or (ii)if the scheme by‑laws provide for a different basis for levying contributions, in accordance with that basis; and (d)recover from the owner of a lot, by action in a court of competent jurisdiction if necessary, any sum of money expended by the company for repairs or work done by it or at its direction in complying with a notice issued, or order made, under a written law in respect of the lot.
Official text (excerpt) · last checked 2026-09-28 · Read the full text in our law library · Verify at legislation.wa.gov.au
Also relied on in: Western Australia Strata Company Law: SAT, By-Laws and Levies
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Sources and References
- Strata Schemes Management Act 2015 (NSW) s 79, estimates for administrative and capital works funds(classic.austlii.edu.au).gov
- Strata Schemes Management Act 2015 (NSW) s 85, payment plans for overdue contributions(classic.austlii.edu.au).gov
- Strata Schemes Management Act 2015 (NSW) s 86, recovery of unpaid contributions and interest(classic.austlii.edu.au).gov
- Strata Schemes Legislation Amendment Act 2025 (NSW) No 14, as passed (assented to 2 March 2025)(legislation.nsw.gov.au).gov
- Strata Titles Act 1985 (WA) s 100, administrative and reserve funds and contributions(classic.austlii.edu.au).gov
- Owners Corporations Act 2006 (Vic) s 29, penalty interest on arrears(classic.austlii.edu.au).gov
- Owners Corporations Act 2006 (Vic) s 30, recovery of money owed(classic.austlii.edu.au).gov
- Community Titles Act 1996 (SA) s 114, contributions by owners of lots(classic.austlii.edu.au).gov
- Community Titles Act 1996 (SA) s 116, administrative and sinking funds(classic.austlii.edu.au).gov
- Body Corporate and Community Management Act 1997 (Qld) s 94, body corporate’s general functions(classic.austlii.edu.au).gov
- NSW Fair Trading: community living (strata and community schemes)(fairtrading.nsw.gov.au).gov