What happens if you don't pay strata levies?

If you own property in a strata scheme, paying your levies on time isn’t just good manners — it’s essential to keeping your building running smoothly. These contributions fund everything from cleaning the common areas to repairing the roof, maintaining the gardens, paying insurance, and more.

But what actually happens if you don’t pay on time? Let’s break it down.

1. Interest charges start adding up

Under NSW strata laws, if your levies aren’t paid by the due date, the Owners Corporation can charge you interest — up to 10% per year — on the overdue amount. That’s money you could have put towards something much more fun than late fees.

2. Debt recovery action may begin

If the levies remain unpaid, the Owners Corporation can take further steps to recover the debt. This might include sending reminder notices, engaging a debt collection agency, or initiating legal proceedings in the NSW Civil and Administrative Tribunal (NCAT) or local courts.

3. It impacts your building (and your neighbours)

When levies aren’t paid, it can create cashflow problems for the Owners Corporation. This may delay important repairs, maintenance, or services for the whole building — meaning everyone feels the impact.

4. You may be liable for legal costs

If the matter escalates, you could also be required to pay the reasonable legal costs the Owners Corporation incurs while recovering the debt. This can make the amount you owe significantly higher.

5. It’s easier to avoid the hassle

The good news is, levy issues are usually easy to avoid. Set up direct debit or calendar reminders for due dates. If you’re experiencing financial difficulties, reach out to your strata manager or the Owners Corporation early — they may be able to arrange a payment plan.

Key takeaway: Strata levies keep your building functioning for everyone’s benefit. Paying them on time avoids unnecessary costs, legal hassles, and tension with your neighbours.

At Centric Strata, we help owners stay on top of their obligations and ensure the building’s finances are managed responsibly — so everyone can enjoy a well-maintained and harmonious community.