Reviewed and updated 14-10-2026. We corrected when a refusal is treated as reasonable, added the 30-day notice rule for recovery action, and removed details we could not verify against the Regulation (plan length, future levies and the wording of the hardship statement).
If you're behind on levies, NSW now has a set process to help. Since 27 October 2025, owners can request a payment plan using a prescribed form — and the owners corporation must respond in writing within 28 days, with no blanket refusals and no fees.
How it works
- The owner makes the request using the prescribed payment plan request form.
- The committee or owners corporation considers that request on its own merits.
- A written response must be given within 28 days.
- If the request is refused, the response must give the reasons.
What the law now requires
- Each request must be decided case by case. An owners corporation can't adopt a policy of refusing payment plans generally.
- No fee can be charged for a payment plan.
- No recovery action can be taken while the owner keeps to the payment plan.
- Every levy notice must include the approved information about payment plans (s83).
When a refusal is reasonable
The Regulation says a refusal is reasonable if the plan would leave the administrative fund or the capital works fund without enough money to meet the owners corporation's obligations — including its duty to repair and maintain common property (cl 17J(1)). That isn't the only possible ground for refusal, but it is the main one written into the law.
If you disagree with a refusal, talk to us first. Mediation through NSW Fair Trading and an application to NCAT are the formal options for strata disputes.
If levies stay unpaid
- Interest of 10% a year (simple) applies, but none is charged if the levy is paid within one month of the due date (s85).
- A levy becomes recoverable once it is still unpaid one month after it fell due (s86(1)).
- The owners corporation must give at least 30 days' written notice before taking recovery action (s86(4)).
What this means for your scheme
This is a practical change that benefits everyone. For owners doing it tough, there's now a proper, dignified process. For schemes — which run on limited funds — it reduces the chance of debts growing, and of the legal costs that come with chasing them. Every owner relies on levies being paid.
If you're behind, don't wait until a recovery letter arrives. A payment plan is far cheaper than letting it escalate, and we'd much rather sort it early. Get in touch and we'll walk you through the form.
How to lodge a request with us
You can submit a payment plan request to us using our online form or PDF. We'll respond within the legal 28 days — usually a lot quicker.
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Sources
Strata Schemes Management Act 2015 (NSW), s83, s85, s86(1) and s86(4). Strata Schemes Management Regulation 2016, cl 17J, 17K, 18A, 18B.