Strata Schemes Management Act 2015 No 50
Current version for 1 July 2020 to date (accessed 10 July 2020 at 07:52)
Part 5 Division 2
Division 2 Contributions by owners
79   Estimates to be prepared of contributions to administrative and capital works funds
(1)  An owners corporation must, not later than 14 days after the constitution of the owners corporation and at each annual general meeting after that, estimate how much money it will need to credit to its administrative fund for actual and expected expenditure—
(a)  to maintain in good condition on a day-to-day basis the common property and any personal property vested in the owners corporation, and
(b)  to provide for insurance premiums, and
(c)  to meet other recurrent expenses.
Note.
 Recurrent expenses would include such regular expenses as insurance, water charges, electricity charges, carpet cleaning, lawn mowing services and the like and minor expenses relating to maintenance of the common property.
(2)  An owners corporation must, at each annual general meeting, estimate how much money it will need to credit to its capital works fund for actual and expected expenditure—
(a)  for painting or repainting any part of the common property which is a building or other structure, and
(b)  to acquire personal property, and
(c)  to renew or replace personal property, and
(d)  to renew or replace fixtures and fittings that are part of the common property, and
(e)  to replace or repair the common property, and
(f)  to meet other expenses of a capital nature.
Note.
 Expenses of a capital nature would include expenses in relation to major repairs or improvements to the common property or personal property of the owners corporation, such as replacement of roofing, guttering or fences and the like.
(3)  When estimating amounts needed to be credited to the administrative fund or the capital works fund, the owners corporation must have before it, and take into account, a statement of the existing financial situation of the strata scheme and an estimate of receipts and payments.
(4)  An estimate prepared before the first annual general meeting of an owners corporation is to take into account the initial maintenance schedule provided by the original owner for that meeting.
(5)  In estimating amounts to be credited to the capital works fund, an owners corporation is to take into account anticipated major expenditure identified in the 10-year plan for the capital works fund proposed under this Division.
(6)  An owners corporation of a large strata scheme must include in the estimates prepared at an annual general meeting—
(a)  specific amounts in relation to each item or matter on which the owners corporation intends to spend money, or on which the owners corporation is aware money will be likely to be spent, in the period until the next annual general meeting, and
(b)  a note as to any difference between the estimates and the 10-year plan for the capital works fund prepared under this Division and the reasons for the difference.
80   Owners corporation to prepare 10-year capital works fund plan
(1)  An owners corporation is to prepare a plan of anticipated major expenditure to be met from the capital works fund for a 10-year period commencing on the first annual general meeting of the owners corporation.
(2)  An owners corporation is to prepare a plan for each 10-year period following the 10-year period to which the first plan applied. The plan is to be prepared for the annual general meeting at which the period covered by the previous plan expires.
(3)  An owners corporation may, by resolution at a general meeting, review, revise or replace a 10-year plan prepared under this section and must review the plan at least once every 5 years.
(4)  A plan under this section is to include the following—
(a)  details of proposed work or maintenance,
(b)  the timing and anticipated costs of any proposed work,
(c)  the source of funding for any proposed work,
(d)  any other matter the owners corporation thinks fit,
(e)  any other matter prescribed by the regulations for the purposes of this section.
(5)  A plan under this section is to be finalised by the end of the next annual general meeting of the owners corporation after the annual general meeting for which the plan is prepared.
(6)  An owners corporation may engage expert assistance in the preparation of a plan under this section.
(7)  An owners corporation is, so far as practicable (and subject to any adjustment under this section), to implement each plan prepared under this section.
81   Owners corporation to set contributions to administrative and capital works funds
(1)  The owners corporation must determine the amounts to be levied as a contribution to the administrative fund and the capital works fund to raise the amounts estimated as needing to be credited to those funds.
(2)  That determination must be made at the same meeting at which those estimated amounts are determined.
(3)  The owners corporation must levy on each person liable for it such a contribution.
(4)  If the owners corporation is subsequently faced with other expenses it cannot at once meet from either fund, it must levy on each owner of a lot in the strata scheme a contribution to the administrative fund or capital works fund, determined at a general meeting of the owners corporation, in order to meet the expenses.
(5)  A contribution is, if an owners corporation so determines, payable by the regular periodic instalments specified in the determination setting the amount of the contribution.
82   Individual contributions may be larger if greater insurance costs
(1)  If the use to which a lot in a strata scheme is put causes an insurance premium for the strata scheme to be greater than it would be if it were not put to that use, so much of a contribution payable by the owner of the lot as is attributable to insurance premiums may, with the consent of the owner, be increased to reflect the extra amount of the premium.
(2)  The Tribunal may, on application, make an order for payment of contributions of a different amount to one or more contributions levied or proposed by an owners corporation on an owner if the Tribunal is of the opinion that the owner’s consent has been unreasonably refused under this section.
(3)  An application for an order under this section may be made by the lessor of a leasehold strata scheme, an owners corporation, an owner of a lot or a mortgagee in possession.
83   Levying of contributions
(1)  An owners corporation levies a contribution required to be paid to the administrative fund or capital works fund by an owner of a lot by giving the owner written notice of the contribution payable.
(2)  Contributions levied by an owners corporation must be levied in respect of each lot and are payable (subject to this section and section 82) by the owners in shares proportional to the unit entitlements of their respective lots.
(3)  Any contribution levied by an owners corporation becomes due and payable to the owners corporation on the date set out in the notice of the contribution. The date must be at least 30 days after the notice is given.
(4)  Regular periodic contributions to the administrative fund and capital works fund of an owners corporation are taken to have been duly levied on an owner of a lot even though notice levying the contributions was not given to the owner.
84   Liability of persons other than owners for contributions
(1)  If, at the time a person becomes the owner of a lot, another person is liable to pay a contribution in respect of the lot, the owner is jointly and severally liable with the other person for the payment of the contribution and any interest on the contribution.
(2)  A mortgagee or covenant chargee in possession of a lot is jointly and severally liable with the owner of the lot—
(a)  for any regular periodic contributions to the administrative fund or capital works fund together with any interest on those contributions, and
(b)  for any other contribution together with interest on that contribution taken to recover unpaid contributions, if the mortgagee or covenant chargee has been given written notice of the levy of the contribution, and
(c)  for any costs payable as a debtor in respect of enforcement action to recover unpaid contributions.
(3)  Subsection (2) does not affect the liability of an owner of a lot for any contribution levied under this section.
85   Interest, discounts on contributions and payment plans
(1)  A contribution, if not paid when it becomes due and payable, bears until paid simple interest at an annual rate of 10% or, if the regulations provide for another rate, that other rate.
(2)  Interest is not payable if the contribution is paid not later than one month after it becomes due and payable.
(3)  However, an owners corporation may by resolution determine (either generally or in a particular case) that a contribution is to bear no interest.
(4)  An owners corporation may, by resolution at a general meeting, determine (either generally or in a particular case) that a person may pay 10% less of a contribution levied if the person pays the contribution before the date on which it becomes due and payable.
(5)  An owners corporation may, by resolution at a general meeting, agree to enter into payment plans, either generally or in particular cases, for the payment of overdue contributions. A payment plan is to be limited to a period of 12 months but a further plan may be agreed to by the owners corporation by resolution.
(6)  The regulations may prescribe requirements for payment plans.
(7)  The existence of a payment plan does not limit any right of the owners corporation to take action to recover the amount of unpaid contributions.
(8)  The Tribunal or a court may, on application by an owner, order that no interest is chargeable on a specified contribution if the Tribunal or the court is satisfied that the owners corporation should reasonably have made a determination not to charge interest for the late contribution.
86   Recovery of unpaid contributions and interest
(1)  The Tribunal may order the owner of a lot in the strata scheme, or other person, to pay a contribution that is payable by the owner or other person under this Act that is not paid at the end of 1 month after it becomes due and payable, together with any interest payable on that unpaid contribution and the reasonable expenses of the owners corporation incurred in recovering those amounts.
(2)  The Tribunal may make an order under subsection (1) only—
(a)  on the application of the owners corporation, and
(b)  if proceedings between the owners corporation and the owner of a lot in the strata scheme or other person are pending before the Tribunal.
(2A)  An owners corporation may, without obtaining an order under this section, recover as a debt in a court of competent jurisdiction, a contribution not paid at the end of 1 month after it becomes due and payable, together with any interest payable on that unpaid contribution and the reasonable expenses of the owners corporation incurred in recovering those amounts.
Note.
 Clause 6 of Schedule 4 to the Civil and Administrative Tribunal Act 2013 provides for the transfer of proceedings between the Tribunal and a court which has jurisdiction (and vice versa) if the parties to the proceedings agree or if the Tribunal or court of its own motion or on the application of a party so directs.
(3)  Interest paid or recovered forms part of the fund to which the relevant contribution belongs.
(4)  An owners corporation must not take action to recover an amount under this section unless it has given the person against whom the action is to be taken at least 21 days notice of the action.
(5)  The notice of the action must set out the following—
(a)  the amount of the contribution, interest or expenses sought to be recovered,
(b)  the recovery action proposed,
(c)  any other matter prescribed by the regulations for the purposes of this subsection.
87   Orders varying contributions or payment methods
(1)  The Tribunal may, on application, make either or both of the following orders if the Tribunal considers that any amount levied or proposed to be levied by way of contributions is inadequate or excessive or that the manner of payment of contributions is unreasonable—
(a)  an order for payment of contributions of a different amount,
(b)  an order for payment of contributions in a different manner.
(2)  An application for an order may be made by the lessor of a leasehold strata scheme, an owners corporation, an owner or a mortgagee in possession.
88   Effect of order varying contributions where payments have been made
If a contribution that is the subject of an order by the Tribunal under this Division has been wholly or partly paid—
(a)  an order to pay more has effect as if the owners corporation had decided to levy a contribution equal to the difference, and
(b)  an order to pay less imposes a duty on the owners corporation to refund the difference.
89   Order requiring original owner to pay compensation for inadequate estimates and levies
(1)  The Tribunal may, on application by the owners corporation for or an owner of a lot in the strata scheme, order the original owner of the strata scheme to pay compensation to the owners corporation if the Tribunal determines that the estimates and levies determined during the initial period for the purposes of determining and meeting expenditures relating to the scheme were inadequate to meet the actual or expected expenditures of the owners corporation.
(2)  The Tribunal must not make an order under this section if the original owner satisfies the Tribunal that the original owner used due care and diligence in determining the estimates and levies.
(3)  An application under this section must be made not later than 3 years after the end of the initial period.
90   Contributions for legal costs awarded in proceedings between owners and owners corporation
(1)  This section applies to proceedings brought by one or more owners of lots against an owners corporation or by an owners corporation against one or more owners of lots (including one or more owners joined in third party proceedings).
(2)  The court may order in the proceedings that any money (including costs) payable by an owners corporation under an order made in the proceedings must be paid from contributions levied only in relation to the lots and in the proportions that are specified in the order.
(3)  The owners corporation must, for the purpose of paying the money ordered to be paid by it, levy contributions in accordance with the terms of the order and must pay the money out of the contributions paid in accordance with that levy.
(4)  This Division (other than provisions relating to the amount of contributions) applies to and in respect of contributions levied under this section in the same way as it applies to other contributions levied under this Division.
91   Information about contributions payable for retirement village
An owners corporation of a strata scheme for a retirement village (within the meaning of the Retirement Villages Act 1999) must, if requested by the operator of the retirement village, give a statement in writing specifying the amount of current contributions levied on a particular lot in the strata scheme.