This is part five of a six part series discussing the strata and community title updates in 2025. This post discusses the changes to finances particularly the requirements regarding payment plans and the levy recovery process.

These changes will be brought about by the Strata Schemes Legislation Amendment Act 2025 when it takes effect. Some minor changes have taken effect but the changes discussed below have not yet done so. It is expected that the changes will come into effect from mid 2025.

Contributions & Payment Plans

Levy notices must contain information prescribed by the Commissioner: s83(1A). This is expected to be payment plan and financial counselling service information. Payments plans continued to be limited to 12 months with provision for further plans to be made after the initial 12 month plan.

Schemes cannot pass a blanket resolution to refuse payment plans but can refuse in particular cases: s85 SSMA. Payment plans can be reasonably refused: s85(5A) SSMA. There is provision for the regulations to prescribe what constitutes a reasonable refusal: s85 (5B) SSMA.  

Payment plan eligibility, the form of request, evidence required and how the request is to be stored, secured, used and disposed of may be the subject of the regulations: s85(6) SSMA. The Tribunal may make order a payment plan be made following an unreasonable refusal to accept a plan: 85(9) SSMA.

Debt recovery

Where payment plans are entered and complied with schemes may not take debt recovery action: s86(6) SSMA.

When payments are received they must be applied to contributions in order of due date, then interest then the schemes expense (if an order was made to enable this) unless an order states otherwise: 86(7) & (8). Notice of debt recovery action will be increased from 21 days to 30 days: s86 SSMA.

In a key change to existing practices, schemes may not recover their reasonable costs of debt recovery action unless they have offered the option of a payment plan and the Tribunal or a court so orders: s 86(2AA) SSMA.

Although references are made throughout to changes to the SSMA, these changes also affect the Community Land Management Act 2021 (NSW) (“CLMA”).

This is general information and is not to be considered as legal advice. Please seek advice tailored to your situation.