Victorian Update - Paying Your Levies On Time
BY: RICK DEERING
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(And What Happens If You Don’t)
We are often asked by lot owners how long do they have to pay their Owners Corporation levies. At SSKB we like to send out levy notices 5 to 6 weeks before the due date. The due date is all important because that is the date that your Owners Corporation expects to collect the levies to enable it to meet its expenditure obligations. If levies are paid late then the Owners Corporation may find itself with not enough cash to meet these obligations.
The Owners Corporation Act 2006 has clear rules to assist Owners Corporations in collecting levies from its members - the lot owners. If a levy is not paid within 28 days of the due date the lot owner will receive a Final Fee Notice advising them of the overdue status of their contributions. The Final Fee Notice will state that the outstanding amount must be paid immediately to avoid further action. This further action usually means the Owners Corporation taking an action through VCAT - the Victorian Civil and Administrative Tribunal. If after a further 28 days the amount is still outstanding, the Owners Corporation has the right to commence a VCAT application without further referral. That is, the Owners Corporation does not need to wait for any approval process - the Act gives it the right to commence legal action.
SSKB puts one further step in the process to benefit lot owners who may have simply overlooked making payment for their levies. 7 days after the due date we send a Reminder Notice alerting the lot owner that their account is in arrears and that it would be in the lot owner's best interest to quickly make a payment and bring their account up to date.
Remember that when you are paying your levies you are not paying SSKB or a utility company but you are paying, along with your fellow lot owners, for your contribution to maintaining the environs of your home to keep it safe, clean and functioning. So, the moral of the story is to keep your levy payments up to date for the benefit of all.
