A special levy is an additional contribution raised by an owners corporation when ordinary funds are insufficient for a particular expense, such as urgent repairs, major work or an unexpected shortfall. Disagreeing with the work or amount does not usually create a right to stop paying unilaterally.
The lifecycle of a levy
- A funding need emerges: quotes, a defect report or the budget shows existing funds are insufficient.
- A motion is proposed: the meeting notice should explain purpose, total, allocation and due date.
- The required vote occurs: the resolution depends on NSW strata or ACT unit-title law and the motion.
- A levy notice is issued: after a valid decision, owners contribute under the applicable unit-entitlement method.
- Funds are spent: the owners corporation must use them consistently with the approved purpose and financial rules.
What an owner can question
- whether notice, quorum, resolution and allocation complied with the rules;
- whether the scope, quotes, conflicts of interest and insurance position were adequately disclosed;
- whether money is being used for the approved purpose;
- whether mediation, NCAT in NSW or ACAT in the ACT should be used.
Until a decision is revoked, varied or displaced by a tribunal order, non-payment can lead to interest, loss of voting rights or debt recovery. Separate a legal challenge from a cash-flow problem.
If the problem is affordability
Request a payment plan in writing before recovery begins. NSW now has a standard overdue-levy payment-plan process. Recovery action for covered arrears is restricted while an approved plan is followed, but future levies still fall due. In the ACT, promptly propose a workable arrangement to the executive committee or manager and check meeting and ACAT pathways.
This is general strata and unit-title information. Meeting validity, allocation and time limits require advice on the actual documents.
Official sources
- NSW Government: Strata levies
- NSW Government: Levy payment plans
- ACT Government: Owning a unit
- ACT Legislation: Unit Titles (Management) Act 2011
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