Strata Reforms – Strata Levy Shake Up
Posted 12 June 2026
Category: Strata, Levy Recovery, Strata Reform
Pending reforms to strata management legislation — including the Strata Schemes Legislation Amendment (Miscellaneous) Bill 2025 — are expected to commence later this year. The reforms introduce a substantial suite of amendments to financial management, levy recovery processes, and payment plan requirements. In particular:
Payment plans
Section 85 (5AAA) provides that a payment plan may, if agreed by owners corporation and owner, include payment of:
Additionally, sections 85 (5AB) and 85 (5AC) have been amended to clarify that a scheme may refuse to enter into payment plans in particular cases.
Reminder notices
Section 85(A) will require issue of a reminder notice in relation to unpaid levy contributions, including:
In addition, Section 86(4) has been amended to extend the notice period before recovery action can be commenced. The owners corporation must now give the reminder notice referred to in Section 85A and 30 days’ notice of the action.
Order of application of payments
Section 86A specifies the order of application of payments, being respectively to contributions (in order of due date), to interest and to recovery costs, except to the extent otherwise specified by Court or Tribunal orders or by the owner in arrears.
Recovery action
Section 86(2AA)(a) amends a provision of a previous reform act which has not yet commenced, to the effect that an owners corporation may only take action with respect to recovery expenses if it has offered the owner the option of entering into a payment plan, by requiring that the offered payment plan address interest, not just unpaid contributions.
As additional considerations, Section 86 (9) provides the Regulations may impose additional conditions on and requirements for recovery action while Sections 86(7) and (8) deletes the provision regarding application of payments.
Legal costs
Section 90(2) extends to the Tribunal the power presently conferred on the Court in relation to proceedings between the owners corporation and the owners of one or more lots, to order that monies (including costs) payable by an owners corporation under an order made in the proceedings must be paid from contributions levied only in relation to specified lots and in specified proportions.
What are the impacts of these changes?
These changes will impact strata managing agents, who will need to adjust their internal processes and compliance workflows. Key changes include:
We have considerable experience with these reforms and could assist you with any practical issues you may be experiencing or expect.
If you are a Compliance Pack member, please click here to download the Strata Reforms Guide.
***The information contained in this article is general information only and not legal advice. The currency, accuracy and completeness of this article (and its contents) should be checked by obtaining independent legal advice before you take any action or otherwise rely upon its contents in any way.
