Levies & Collection Procedures
Find out how your body corporate levies are charged and payment options.
If you have a question for your Body Corporate Account Manager,
you can find their details here.
Frequently Asked Questions
Body Corporate Levies
At each body corporate annual general meeting the owners decide and agree on (by resolution) the amount of the budget for the next year. Even more importantly they agree on how many instalments of the levy will be raised and sent to owners each year. When considering how many instalments of the levy there will be. (Which is based on the total figure of the budget agreed to at the AGM). The owners will consider the following:
• What the cashflow needs are for the body corporate throughout the year
• How many debts there are outstanding by owners to the body corporate at the start of the financial year
• How many owners regularly pay their levy instalments when they fall due, and how many the body corporate has to carry as debts throughout the year
• How many creditors invoices are outstanding at each month throughout the year
• When larger costs, such as insurance fall due
• How many instalments are included in the total cost of their body corporate administration fee. (For most bodies corporate this is two or three, and additional levies increase the cost to the body corporate in administration fees)
• Whether or not there are likely to be special projects requiring special levies to be raised throughout the year
The body corporate account manager will have provided a detailed budget to owners well before the meeting, showing where and in which month the expenses fall throughout the year. This assists the owners to see at a glance where they are likely to need the greatest amount of cash injection into the operational account.
Often, because the insurance is due for renewal in the earlier part of the financial year, a larger percentage of the funds are needed in the first levy instalment. So the body corporate may resolve to raise the levies in two or three instalments spaced throughout the year, but with the first instalment being 60% of the total levy and the remaining one or two instalments being either 40% or 20% of the total levy for the year.
This provides the body corporate with the funds necessary to meet their greatest obligation at the time when they most need them. Bodies corporate with quarterly ground lease rental to meet may wish to time their levy instalments so that they fall due for payment prior to each quarterly ground rent payment.
Your body corporate manager is experienced in managing cash flow and will be able to assist owners with this process.
Once resolved at the AGM, the details of when each levy instalment will be raised and sent to owners are detailed in the minutes sent out to owners after the general meeting. This will include the months that the levy instalment invoices will be sent so that if owners are planning on taking a vacation throughout the year, they are able to make prior arrangements to have the levy instalments paid by the due dates.
Levy Collection Process
If owners have an email address recorded with us, all notifications about the levy instalments will be forwarded to them through Crockers Direct. If an owner has opted to have all correspondence posted to them, then they will receive all statements and invoices through the post at the address recorded with us.
Levies are sent with minutes of General Meetings or raised within 14 days of the General Meeting unless the body corporate Chairman instructs otherwise. Crockers then adhere to the following process as from 1 April 2017:
- 7 days BEFORE the due date of the levy instalment - if the owner has opted to receive communication via email, a reminder email will be sent that the levy instalment is due for payment within 7 days.
- 7 days AFTER the due date of the levy instalment - if payment has not been received and the owner has opted to receive communication via email, a further reminder email will be sent to them advising that the payment is now overdue. If the owner has opted for postal communication then a printed statement will be sent.
- 14 days AFTER the due date of the levy instalment - if payment has not been received a reminder will be sent to them advising that the payment is still overdue and they have 14 days to make payment or the outstanding debt will be transferred to Blake & MacKenzie Ltd and collection costs will be incurred.
Debt Collection Process followed by Blake & MacKenzie:
- 28 days AFTER the due date of the levy instalment - a debt collection cost of $115.00 plus GST will be added to the overdue amount.
- 42 days AFTER the due date of the levy instalment - a debt collection cost of $175.00 plus GST will be added to the overdue amount.
- 56 days AFTER the due date of the levy instalment (FINAL DEMAND STAGE) - a debt collection cost of $150.00 plus GST will be added to the overdue amount.
Please refer to the Blake & MacKenzie website.
**Please note the above process may vary from time to time if directed to do so by the Body Corporate Committee
Any invoices owing and in the Crockers Body Corporate Management debt collection process up to 31 March 2017, adhere to the prior Crockers Body Corporate Management Levy Collection Process as stated here.