Strata Levies in WA: What You Need to Know About Overdue Payments


Understanding Strata Levies in Western Australia

Welcome to the world of strata living in Western Australia! Whether you are a new homeowner or have been living in a strata property for a while, it’s important to understand the concept of strata levies and how they work. So, let’s dive in and unravel the mystery behind strata levies!

When you live in a strata property, such as an apartment complex or a townhouse, you become part of a community. This community is managed by a strata corporation, which is responsible for maintaining and managing the common areas and shared facilities. To cover the cost of these expenses, each owner is required to contribute a certain amount of money, known as strata levies, on a regular basis.

Strata levies typically cover a wide range of expenses, including maintenance of common areas like gardens, swimming pools, and elevators, building insurance, repairs, and management fees. The amount you need to pay will depend on various factors, such as the size of your property and the amenities available in your complex.

It’s important to note that strata levies are not optional. They are a legal requirement, and failure to pay them can have serious consequences. The strata levies are used to ensure that everyone contributes their fair share towards the upkeep and maintenance of the property.

If you’re wondering how the strata levies are calculated, it’s usually based on the unit entitlement of each lot within the strata scheme. The unit entitlement is a proportionate representation of the value of each lot compared to the total value of all lots in the scheme. It’s determined when the strata plan is registered and can be found in the by-laws or the strata plan itself.

Now that we have a basic understanding of strata levies, let’s move on to the consequences of overdue payments in the next section.


Next: The Consequences of Overdue Strata Levy Payments

The Consequences of Overdue Strata Levy Payments

Oops, missed a payment? While it can happen to the best of us, it’s important to understand the consequences of overdue strata levy payments in Western Australia. Let’s take a look at what could happen if you fail to pay your strata levies on time.

  • Interest and Penalties: When you miss a payment deadline, you may be charged interest and penalties on the overdue amount. These additional costs can quickly add up, making it even more challenging to catch up on your payments.
  • Restrictions on Facilities: If you consistently fail to pay your strata levies, the strata corporation may take action to restrict your access to common facilities, such as the swimming pool or gym. This can be highly inconvenient and affect your quality of life within the strata property.
  • Legal Action: In extreme cases, the strata corporation may take legal action against you to recover the overdue levies. This can result in court proceedings, additional legal costs, and potential damage to your credit rating.

It’s important to note that the strata corporation has the right to recover the outstanding levies, and they are within their rights to take the necessary steps to ensure payment. That’s why it’s crucial to manage your strata levies responsibly and pay them on time.

Now that we understand the consequences of overdue strata levy payments, let’s move on to the next section and explore some strategies for managing and paying strata levies on time.


Next: Strategies for Managing and Paying Strata Levies on Time

The Consequences of Overdue Strata Levy Payments

Hey there! So, you’ve probably heard about strata levies if you own a property in Western Australia. They’re those regular payments you make to cover the costs of maintaining and running your strata scheme. But what happens if you don’t pay them on time? Well, let’s dive into the consequences of overdue strata levy payments.

First and foremost, it’s essential to understand that strata levies are crucial for the smooth functioning of your strata scheme. They fund various expenses like maintenance, repairs, insurance, and shared amenities. When owners fail to pay their levies, it can create financial strain on the scheme and impact everyone living in it. That’s why it’s crucial to keep your payments up to date.

So, what happens if you fall behind on your strata levies? Well, the first consequence is typically a gentle reminder from the strata council. They’ll send you a notice advising you of your overdue payment and the amount you owe. This is generally a friendly warning to prompt you to pay your levies promptly.

If you still fail to pay after the initial notice, things can get a bit more serious. The strata council may decide to charge you interest on the overdue amount. This is to compensate for the time and effort they have to put into chasing up the payment. The interest rate is usually outlined in the strata legislation, so it’s essential to familiarize yourself with these details.

Now, let’s say you continue to ignore the reminders and interest charges. The strata council may then escalate the matter by issuing a “Section 71 Notice.” This notice formally demands payment of the overdue levies within a specific timeframe. It will also include any additional costs incurred by the scheme in pursuing the debt.

If you still don’t pay after receiving a Section 71 Notice, the strata council can take legal action against you. This could result in a judgment against you, and you may be required to pay not only the overdue levies but also any legal costs associated with the proceedings. This can be a substantial financial burden, so it’s best to avoid this situation altogether.

Furthermore, if you decide to sell your property, any outstanding levies will need to be settled before the sale can proceed. This means that if you have overdue payments, you won’t be able to finalize the sale until you’ve cleared your debt. This delay can be frustrating and could potentially affect your plans.

So, as you can see, there are some serious consequences to not paying your strata levies on time. It’s always best to be proactive and fulfill your financial obligations promptly. If you’re facing difficulties in paying your levies, it’s crucial to communicate with the strata council and seek assistance. They may be able to offer alternative payment arrangements or provide guidance on available support options.

Remember, staying on top of your strata levies ensures the smooth operation of your strata scheme and contributes to a harmonious living environment for everyone involved. So, let’s keep those payments up to date and enjoy the benefits of a well-maintained and thriving community!

The Consequences of Overdue Strata Levy Payments

Hey there! So, you’ve probably heard about strata levies if you own a property in Western Australia. They’re those regular payments you make to cover the costs of maintaining and running your strata scheme. But what happens if you don’t pay them on time? Well, let’s dive into the consequences of overdue strata levy payments.

  1. First and foremost, it’s essential to understand that strata levies are crucial for the smooth functioning of your strata scheme. They fund various expenses like maintenance, repairs, insurance, and shared amenities. When owners fail to pay their levies, it can create financial strain on the scheme and impact everyone living in it. That’s why it’s crucial to keep your payments up to date.
  2. So, what happens if you fall behind on your strata levies? Well, the first consequence is typically a gentle reminder from the strata council. They’ll send you a notice advising you of your overdue payment and the amount you owe. This is generally a friendly warning to prompt you to pay your levies promptly.
  3. If you still fail to pay after the initial notice, things can get a bit more serious. The strata council may decide to charge you interest on the overdue amount. This is to compensate for the time and effort they have to put into chasing up the payment. The interest rate is usually outlined in the strata legislation, so it’s essential to familiarize yourself with these details.
  4. Now, let’s say you continue to ignore the reminders and interest charges. The strata council may then escalate the matter by issuing a “Section 71 Notice.” This notice formally demands payment of the overdue levies within a specific timeframe. It will also include any additional costs incurred by the scheme in pursuing the debt.
  5. If you still don’t pay after receiving a Section 71 Notice, the strata council can take legal action against you. This could result in a judgment against you, and you may be required to pay not only the overdue levies but also any legal costs associated with the proceedings. This can be a substantial financial burden, so it’s best to avoid this situation altogether.
  6. Furthermore, if you decide to sell your property, any outstanding levies will need to be settled before the sale can proceed. This means that if you have overdue payments, you won’t be able to finalize the sale until you’ve cleared your debt. This delay can be frustrating and could potentially affect your plans.
  7. So, as you can see, there are some serious consequences to not paying your strata levies on time. It’s always best to be proactive and fulfill your financial obligations promptly. If you’re facing difficulties in paying your levies, it’s crucial to communicate with the strata council and seek assistance. They may be able to offer alternative payment arrangements or provide guidance on available support options.
  8. Remember, staying on top of your strata levies ensures the smooth operation of your strata scheme and contributes to a harmonious living environment for everyone involved. So, let’s keep those payments up to date and enjoy the benefits of a well-maintained and thriving community!

Strategies for Managing and Paying Strata Levies on Time

Welcome back! Now that we understand what strata levies are and the consequences of falling behind on payments, let’s dive into some strategies to help you manage and pay your strata levies on time. Remember, staying on top of your payments is crucial for maintaining a harmonious living environment and avoiding legal implications. So, let’s get started!

1. Set Up an Automatic Payment

One of the easiest ways to ensure you never miss a strata levy payment is to set up an automatic payment. Contact your bank or financial institution to arrange for your strata levies to be automatically deducted from your account on the due date. This way, you won’t have to worry about forgetting to make the payment manually.

2. Create a Budget

To avoid any financial surprises, it’s important to create a budget that includes your strata levies. Take the time to analyze your income and expenses to determine how much you can comfortably allocate towards your levies each month. By planning ahead, you can ensure that you always have enough funds set aside to cover your payments.

3. Prioritize Strata Levies

When it comes to managing your finances, it’s crucial to prioritize your strata levies. Make them a top priority and ensure that they are paid before other discretionary expenses. By doing this, you can avoid falling behind on payments and accumulating unnecessary interest or penalties.

4. Set Reminders

We all lead busy lives, and it’s easy to forget important dates. To avoid missing the due date for your strata levies, set reminders on your phone or calendar. This simple step can help you stay organized and ensure that you never miss a payment.

5. Communicate with the Strata Council

If you’re facing financial difficulties and are struggling to pay your strata levies on time, reach out to the strata council. They may be able to offer you some flexibility or alternative payment arrangements. It’s important to keep the lines of communication open and inform them about any challenges you’re facing.

6. Consider a Payment Plan

If you find yourself falling behind on your strata levy payments, don’t panic. Talk to the strata council about setting up a payment plan. This arrangement allows you to pay off your arrears in manageable installments over a specified period. It’s a great option for those who need a little extra time to catch up on their payments.

7. Seek Financial Assistance

If you’re facing significant financial hardship and are unable to meet your strata levy obligations, consider seeking financial assistance. There may be government or community programs available to help you during difficult times. Reach out to relevant organizations or charities to explore your options.

By implementing these strategies, you can take control of your strata levy payments and ensure that you never fall behind. Remember, open communication, careful planning, and proactive management are the keys to success. So, stay organized, stay informed, and enjoy a stress-free strata living experience!

IV. Legal Implications of Not Paying Strata Levies in WA

So, you’ve missed a few strata levy payments and now you’re wondering what the consequences might be. Well, it’s important to understand that not paying your strata levies in Western Australia can have some serious legal implications.

First and foremost, strata levies are essential for the overall maintenance and management of your strata complex. They contribute to various expenses such as building repairs, insurance, common area maintenance, and other shared amenities. When you fail to pay your levies, it can disrupt the financial stability of the strata scheme and affect the quality of living for everyone involved.

One of the first things that might happen if you fall behind on your strata levy payments is that the strata council or management committee will issue you with a reminder notice. This notice will inform you of the outstanding amount, any interest or late fees that have accrued, and provide a due date for payment. At this stage, it’s crucial to take prompt action and settle the amount owed.

If you fail to pay the outstanding levies after receiving a reminder notice, the strata council may escalate the matter by issuing you with a “Form 5 – Notice to Owner for Non-Payment of Strata Levies.” This form is a legal notice that gives you 14 days to pay the amount owed. It’s important to note that this notice can also include any additional costs incurred by the strata scheme in relation to the recovery of the outstanding levies.

If you still don’t pay the outstanding levies within the given timeframe, the strata council or management committee may take further legal action to recover the debt. This can include applying to the Magistrates Court for a judgment against you, which can result in a range of enforcement measures such as garnishing your wages or seizing and selling your assets to recover the debt.

In addition to the financial consequences, not paying your strata levies can also affect your ability to sell or refinance your property. When you’re ready to sell, potential buyers will conduct a strata inspection, and any outstanding levies will be flagged. This can potentially scare away buyers or impact the sale price of your property. Similarly, if you’re looking to refinance, lenders may be hesitant to provide financing if there is a history of unpaid levies.

It’s clear that not paying your strata levies can have both immediate and long-term legal implications. That’s why it’s crucial to prioritize your levy payments and ensure they are paid on time.


Disclaimer: The information provided here is for educational purposes only and does not constitute legal advice. If you’re facing issues with strata levies, it’s always advisable to seek professional legal assistance.

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Communication and Negotiation with Strata Councils on Overdue Payments

So, you’ve found yourself in a situation where you’ve fallen behind on your strata levy payments. It happens to the best of us! But don’t worry, there are steps you can take to resolve the issue and get back on track with your strata council. Communication and negotiation are key in these situations, and with a little effort, you can find a solution that works for both parties.

The first step is to reach out to your strata council as soon as possible. Ignoring the issue will only make things worse, so it’s important to address it head-on. Start by contacting the council in writing, either through email or a formal letter, explaining your situation and expressing your willingness to resolve the outstanding payments. Be sure to provide any relevant details, such as reasons for falling behind or any extenuating circumstances.

When communicating with your strata council, it’s essential to be polite and respectful. Remember, they are there to help manage the building and ensure the smooth running of the strata scheme. Being understanding and cooperative will go a long way in building a positive relationship with the council members.

During your communication, it’s a good idea to propose a payment plan that suits your financial situation. This shows your commitment to resolving the issue and can help demonstrate your willingness to meet your obligations. Be realistic about what you can afford to pay and suggest a timeline for catching up on the overdue amounts. This way, you’re offering a solution rather than just acknowledging the problem.

It’s important to keep records of all your interactions with the strata council. Save copies of emails, letters, and any other form of communication. This documentation will serve as evidence of your efforts to resolve the issue and can be useful if the situation escalates further.

If you find that your initial communication with the strata council doesn’t lead to a resolution, you may need to explore other options. This could involve seeking advice from a mediator or even engaging a lawyer specializing in strata law. These professionals can provide guidance on your rights and obligations and help facilitate a resolution between you and the strata council.

Remember, the key to resolving overdue strata levy payments is open and honest communication. By reaching out to your strata council, proposing a realistic payment plan, and maintaining a respectful attitude, you increase your chances of finding a solution that works for both parties.

While it’s best to avoid falling behind on your strata levies in the first place, life happens, and sometimes we find ourselves in difficult financial situations. The important thing is to take action and address the issue as soon as possible. With effective communication and negotiation, you can work towards resolving the outstanding payments and maintaining a positive relationship with your strata council.


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The Role of Strata Managers in Levy Collection and Arrears

When it comes to managing strata properties, strata managers play a crucial role in ensuring that strata levies are collected and any arrears are addressed promptly and efficiently. If you’re living in a strata-titled property in Western Australia, it’s important to understand the role of strata managers in levy collection and arrears management.

1. Collection of Strata Levies: Strata managers are responsible for collecting strata levies from all the owners within the strata complex. They calculate the levies based on the approved budget and distribute invoices to each owner. These levies go towards covering the expenses of maintaining and managing the common areas of the strata property, such as landscaping, building maintenance, and insurance.

2. Monitoring and Chasing Arrears: Strata managers keep a close eye on the status of levy payments and actively chase any overdue amounts. They send reminders and notices to owners who have fallen behind on their payments, ensuring that they are aware of their obligations and the consequences of non-payment. Strata managers may also impose late payment fees or interest on outstanding amounts as per the strata by-laws.

3. Providing Financial Reports: Strata managers have a duty to maintain accurate and up-to-date financial records for the strata scheme. They prepare financial reports detailing the income and expenditure of the scheme, including the collection of strata levies and any outstanding arrears. These reports are typically presented at annual general meetings to keep owners informed about the financial health of the strata complex.

4. Assisting with Payment Plans: In some cases, owners may face temporary financial hardships that make it difficult to pay their strata levies on time. Strata managers can work with these owners to set up payment plans, allowing them to pay the arrears in installments over a specified period. This helps to alleviate the burden on the owner while ensuring that the strata scheme receives the required funds to cover its expenses.

5. Enforcement of Legal Action: If an owner consistently fails to pay their strata levies despite repeated reminders and payment plans, strata managers may escalate the matter to legal action. This may involve filing a claim with the Magistrates Court to recover the outstanding amounts. Strata managers work closely with legal professionals to ensure that the necessary steps are taken to enforce payment and protect the interests of the strata scheme.

Strata managers play a vital role in ensuring that strata levies are collected on time and any arrears are managed effectively. By working with owners, providing financial transparency, and taking appropriate actions when necessary, strata managers help to maintain the financial stability and harmony within the strata complex.


Preventative Measures to Avoid Strata Levy Arrears

Nobody likes to have overdue bills piling up, especially when it comes to strata levies. To keep your finances in order and maintain a harmonious living environment, it’s important to take some preventative measures to avoid strata levy arrears. Here are some helpful strategies to keep your payments on track:

1. Budget Wisely

Setting a realistic budget is the first step towards avoiding strata levy arrears. Take the time to assess your income and expenses, including your regular strata levy payments. Make sure to allocate enough funds to cover these payments each month. If necessary, consider cutting back on non-essential expenses to ensure you have enough money available.

2. Prioritize Strata Levies

When managing your finances, it’s essential to prioritize your strata levy payments. These fees go towards maintaining the common areas of your building and ensuring a comfortable living environment for everyone. By making strata levies a priority, you can avoid falling into arrears and potentially facing legal consequences.

3. Set Up Automatic Payments

One of the easiest ways to ensure you never miss a strata levy payment is to set up automatic payments. Speak to your bank about setting up a direct debit from your account, so the payments are automatically deducted on the due date. This way, you won’t have to worry about remembering to make the payment manually each time.

4. Create an Emergency Fund

Life is full of unexpected surprises, and sometimes emergencies can put a strain on your finances. To protect yourself from falling behind on strata levies due to unforeseen circumstances, consider building an emergency fund. Having some savings set aside can provide you with a safety net and ensure you can continue making your payments even during challenging times.

5. Communicate with the Strata Council

If you anticipate having difficulty making a strata levy payment on time, it’s crucial to communicate with the strata council as soon as possible. They may be able to offer alternative payment arrangements or provide advice on how to manage the situation. Open and honest communication can help prevent misunderstandings and potential legal action.

6. Stay Informed

Keep yourself well-informed about the strata by-laws and regulations in your area. Familiarize yourself with the payment deadlines, consequences of late payments, and any dispute resolution processes. By staying informed, you can ensure you are fulfilling your obligations and taking the necessary steps to avoid arrears.

7. Engage with Strata Managers

Strata managers play a crucial role in levy collection and arrears management. Reach out to them if you have any questions or concerns regarding your payments. They can provide guidance and support, helping you navigate any challenges that may arise.

By following these preventative measures, you can take control of your strata levy payments and avoid the stress and consequences of falling into arrears. Remember, responsible financial management and open communication are key to maintaining a harmonious living environment within your strata community.

Preventative Measures to Avoid Strata Levy Arrears

  • Budget Wisely: Set a realistic budget that accounts for strata levies.
  • Prioritize Strata Levies: Make paying strata levies a financial priority.
  • Set Up Automatic Payments: Arrange for direct debits to ensure timely payments.
  • Create an Emergency Fund: Build savings to cover unexpected expenses.
  • Communicate with the Strata Council: Discuss any payment difficulties in advance.
  • Stay Informed: Know the rules, deadlines, and dispute resolution processes.
  • Engage with Strata Managers: Seek support and guidance from strata managers.

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