Sunday, September 20, 2020

What is the levy interest rate on unpaid strata levies?

levy interest rate on unpaid strata levies

What is the levy interest rate on unpaid strata levies?

Interest rates for unpaid strata levies vary greater from to state to state

A strata levy also known as a body corporate fee is a ‘contribution’ paid by all lot owners in a scheme to cover any projected costs and expenses.

Levy Interest Rate, Queensland

A Body Corporate has the power to charge 2.5% interest per month (30% per annum) on levies which are overdue, by way of ordinary resolution. The interest allows Body Corporates to penalise an owner and gain compensation for costs associated with a default by an owner to service his/her/its obligations.
(Regulation 144)

Levy Interest Rate, New South Wales

In NSW, if a contribution is not paid within one month, the unpaid levy attracts interest at a rate of 10% simple interest a year. The Body Corporate cannot increase or decrease the interest, but it can make a special resolution to charge no interest. Unpaid levies, including interest, can be recovered by the Body Corporate as a debt in court.
(Section 85)

Levy Interest Rate, Victoria

In Victoria, the penalty interest rate applies to debts arising from a civil judgement debt or court order. The interest rate is currently 10% per annum but it is important to check this figure as it is regularly amended by the Victorian Attorney General.
(Section 29)

Levy Interest Rate, Australia Capital Territory

In ACT, unpaid strata levies attract an interest of 10% per annum. The owners corporation can decrease the interest or increase it up until 20% by way of special resolution.
(Section 94)

Levy Interest Rate, Tasmania

In Tasmania, interest accrues on overdue contributions at a rate fixed by resolution of the Body Corporate. The rate of interest must be fixed on a fair and reasonable basis.

Levy Interest Rate, South Australia

In South Australia, contributions which are late may incur interest of up to 15% per annum. This interest may be imposed by the strata corporation following an ordinary resolution.
(Section 27)

Levy Interest Rate,  Western Australia

In Western Australia, a Body Corporate can impose and interest charge of 15% for contributions not made.
(Section 26)

 

Strataville Editorial
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