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Body Corporate Levy Recovery

Levies are the proportionate payments that each owner must make to the body corporate to keep it solvent.  They are needed to ensure that the body corporate is able to operate and meet its other statutory obligations.

Levies are calculated based on the:

  1. budget that the owners approved at general meeting; and
  2. lot entitlements in the community management statement.

Owners must pay their levies when they fall due. When they don’t pay their levies, committees then have an actual statutory obligation to commence proceedings to recover the unpaid amounts from the owners.

There is no real defence that an owner can successfully raise to avoid paying their levies but that is not to say that owners cannot be difficult or obstinate about paying. 

Along with the unpaid levy component, owners are responsible for making payment of any:

  1. penalty interest - assuming the body corporate has approved it at general meeting. This is normally simple interest of 2.5% each month; and
  2. recovery costs – assuming that they are reasonable. This would include any costs that the body corporate has incurred by the body corporate manager or legal costs in seeking recovery of the unpaid levy.

Early recovery of levies is crucial. If left for too long, the initial amount owing can become a much larger problem for committees.

We have an efficient and effective fixed fee process to recover outstanding body corporate levies starting with obtaining your initial instructions all the way to enforcing any judgements received in court, please complete the form below:

Related Newsletters

Changes to the law for debt recovery by bodies corporate

The timing for body corporate debt recovery proceedings is clarified

Key contacts

Jodie Graham

Jodie Graham

Associate Director

Body Corporate
Dispute Resolution
Insolvency & Restructuring