Can You Get a Payment Plan for Overdue Strata Levies in NSW?

Falling behind on strata levies can be stressful. An unexpected expense, a change in income or several large bills arriving at once can make it difficult to pay the full amount by its due date.

In NSW, an owner with overdue levies can request a payment plan to repay what they owe in instalments. Here is how the process works and what to consider before applying.

What does a payment plan cover?

A payment plan deals with levies that are already overdue. It can run for up to 12 months and sets out when and how the outstanding amount will be repaid.

It does not include future levy bills. Those still need to be paid when they fall due, so it is important to consider both the proposed instalments and your upcoming levies when deciding what you can afford.

How do you request one?

Start by contacting your strata manager or strata committee as early as possible. You will need to submit your request using the NSW standard payment plan request form.

The form also gives you the option to ask for interest on the overdue levies to be waived. That is a separate decision; asking for a payment plan does not automatically remove interest.

The owners corporation or strata committee must decide on the request by majority vote at a meeting. A strata manager can help with the process, but cannot make that decision on the scheme’s behalf.

How long does a decision take?

The owners corporation or strata committee must give you a written response within 28 days of your request. It must consider the request; it cannot simply adopt a blanket position that no payment plans will be offered.

The scheme also has legitimate costs to meet. When considering a proposal, it may need to assess whether the plan would leave insufficient money for expenses or required repairs. If it refuses your request, its written response must explain why and how those reasons apply to your circumstances.

What happens if the plan is approved?

You should receive a payment plan statement setting out the amount owed, any applicable interest, the payment schedule and how to make payments. Keep a copy and check your payment records as you go.

While an approved plan is in place and you are following it, action cannot be taken through a court or the NSW Civil and Administrative Tribunal to recover the overdue levies covered by that plan. You must still keep up with new levies.

What if your request is refused?

If you believe the refusal was unreasonable, you can seek free mediation through NSW Fair Trading. If the issue remains unresolved, you may be able to ask the Tribunal to consider the refusal.

The best first step is usually to speak up early. A realistic proposal gives the scheme a clearer way to recover the debt and gives you a manageable path forward.

If you are having difficulty paying your strata levies, contact your strata manager promptly to discuss the process and obtain the standard request form.