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
This policy outlines the debt collection process during the Covid-19 pandemic. The Covid-19 pandemic may impact some owner’s ability to meet their financial commitments to their body corporate. However, services such as power, water, lift servicing, cleaning, fire monitoring are required to maintain a safe environment within a body corporate.
The purpose of this policy is to strike a balance between being empathetic to those owners financially impacted by the Covid-19 pandemic and a body corporate’s need for levies to be paid in a timely manner to continue to have a safe and healthy home.
We recognise that these unprecedented times require special consideration and will work with all parties to achieve a mutually beneficial outcome. Our philosophy is to work collaboratively with both our body corporates and owners to resolve the payment of outstanding levies and/or related debts.
All owners will be communicated with via their preferred method of contact where possible.
- On or about 7 days PRIOR to when levies are due - Reminder notice will be sent to the owner reminding them of the levy due date, highlighting the implications of not paying their levies on time for the body corporate’s ability to function, and suggesting they initiate contact if they are likely to struggle with the due date.
- On or about 15 days AFTER the due date of the levy instalment– An initial demand for payment will be made. A debt collection cost of $57.50 including GST would ordinarily be charged to the owner however Crockers will forfeit this charge in light of COVID-19.
- On or about 28 days AFTER the due date of the levy instalment– A second demand for payment will be made. A debt collection cost of $115.00 including GST would ordinarily be charged to the owner however Crockers will forfeit this charge in light of COVID-19.
- On or about 42 days AFTER the due date of the levy instalment– A third demand for payment will be made. A debt collection cost of $200.00 including GST would ordinarily be charged to the owner however Crockers will forfeit this charge in light of COVID-19.
- On or about 56 days AFTER the due date of the levy instalment– A final demand for payment will be made. A debt collection cost of $200.00 including GST would ordinarily be charged to the owner however Crockers will forfeit this charge in light of COVID-19.
** Please note the above process may vary from time to time if directed to do so by the body corporate committee.
** Non-payment of levies on time may incur penalty interest of up to 10% in accordance with the Unit Titles Act. Only the committee can vary whether interest is payable, and if so the rate (up to a maximum of 10%).