Summary:

Levies are issued in accordance with the instruction of owners at the AGM.

ESM issue levy notices well in advance of the due date.

There is an applicable 14 day grace period, however after this time, penalty interest applies for late payments.

The amount charged is 15% PA (as stipulated in the strata regulations). All penalty interest is paid to the strata company administrative fund and not to the strata manager.

Macquarie Bank has many payment options with the ability to set up automatic payments. For further information please refer to https://www.deft.com.au/

Example Case:

An owner within a Survey-Strata complex in Clarkson had received their first levy notice since settlement had occurred on the lot. 

The owner was unsure as to why they had received a levy notice as they had not realised that the development was a survey-strata tilted lot. They claimed that the agent had not notified them, despite receiving a form 28 and 29 as part of the offer and acceptance pack.

The owner declined to pay the first levy notice on the grounds that they were not advised of this ongoing cost. On receipt of the second quarters levy notice, they noticed that penalty interest (15% pa) had accrued on the overdue amount. 

After discussions with the Strata Manager and their Settlement Agent, they concluded that they would have no option other than to pay. Payment was made for both levies and the penalty interest and the owner accepted that they should have been more vigilant as to what they were purchasing.