Can an owner refuse an increase to their strata levies?

Strata LivingOwning in StrataStrata LeviesRights & Responsibilities

30 Sept

In this month’s Strata Q&A, we received a question from Yi-Chen W — a committee member based in Victoria, asking if an owner has any grounds to refuse an increase in their strata levies. What happens if they only partially pay their levies, and what action can the committee take?

Q. Can an owner refuse to pay their increased owners corporation levies if they don’t agree with the increase?

I’m on the committee for our apartment building in Victoria, and one of my neighbours has emailed saying she doesn’t agree with the increase in our owners corporation levies. She says the fees aren’t justified and that she’s only going to pay the same amount as last year.

I’m not sure how to respond. Do I need to do something about it, or should I just leave it to the strata manager?

A. Refusing to pay the higher levy isn’t an option. If an owner doesn’t pay, the owners corporation can take formal action to recover the debt.

In Victoria, owners corporation levies (also known as strata fees) are set based on an approved annual budget under the Owners Corporations Act 2006. Once those levies are approved at a general meeting, all owners are legally required to pay their share, even if they personally disagree with the amount or how the money is being spent.

Simply refusing to pay the higher levy isn’t an option. If an owner doesn’t pay, the owners corporation can take formal action to recover the debt, including:

Sending overdue payment notices
Charging interest on unpaid amounts
Taking legal action to recover outstanding levies

If your neighbour raises concerns, it’s best to respond politely but confidently. Explain that the levies were set according to the approved budget and that payment is a legal obligation for all owners. You can also offer to share the meeting minutes, budget, or levy notices if they’d like more information about how the increase was decided.

If your neighbour is struggling financially, they can talk to the owners corporation or strata manager about a possible payment plan, but they can’t unilaterally decide to pay less than the approved amount.

In short, owners corporation levies in Victoria are binding, and all owners must contribute their share to keep the building properly maintained and financially secure.