New South Wales Consolidated Acts
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STRATA SCHEMES MANAGEMENT ACT 2015 - SECT 85
Interest, discounts on contributions and payment plans
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
(3) However, an owners corporation may by resolution determine
(either generally or in a particular case) that a contribution is to bear no
(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.
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