Can the owners corporation simply refuse a plan?

In NSW, no — under s 85 of the Strata Schemes Management Act 2015, the owners corporation must not by resolution refuse to enter into payment plans. The OC may refuse a particular plan in a particular case, but cannot adopt a blanket refusal policy. The refusal must also be reasonable; an unreasonable refusal is reviewable. In other States and Territories, the position is less explicit but a reasonable plan is almost always considered — outright refusal of any hardship arrangement is rare and exposes the OC to tribunal criticism.

How long can the plan run?

In NSW the statutory ceiling is 12 months for a single plan; a further plan may be agreed at the end of that period. Other States do not set a statutory ceiling but most committees treat 12 months as the working maximum. Plans longer than 12 months are often refused on the basis that they do not represent a credible commitment to clearing the debt — keep the proposed plan within the statutory ceiling where possible, and break a longer obligation into a 12-month plan followed by a fresh request.

What about default interest while the plan is being paid?

The standard request is for default interest to be paused while the plan is being complied with. This prevents the debt from growing during the plan — which would otherwise undermine the plan's ability to clear the arrears. The NSW framework contemplates this position. Queensland allows the body corporate to waive the penalty interest. In other States, the position is at the committee's discretion but most committees agree to a pause if the plan is otherwise sound.

What happens to the recovery costs already incurred?

Three options are common: (a) include the recovery costs in the plan instalments (most common, ensures the OC is made whole); (b) request a 50% reduction as part of the plan settlement (a goodwill compromise where the OC has incurred substantial costs); (c) request a full waiver (only realistic for small amounts). The OC is generally entitled to recover reasonable enforcement costs, but the costs must be reasonable — challenge any costs that appear excessive.

What if the OC refuses unreasonably?

Three escalation steps are typical. First, engage a financial counsellor (free, accredited, via the National Debt Helpline 1800 007 007) to mediate the negotiation. Second, apply to the State tribunal for hardship orders — the tribunal can pace or stay recovery action and order a reasonable plan. Third, preserve all rights at law — including the right to set aside or vary any judgment on hardship grounds. The escalation pathway also tends to produce a more reasonable response from the committee in the first place.

Does the request affect the lot title?

No — the request itself does not appear on the lot title. However, an unresolved levy debt that proceeds to judgment may appear on the title or in subsequent strata searches conducted on the sale of the lot. A registered payment plan is a much better record than a recorded judgment. Always document the plan in writing — verbal agreements are not enforceable and not reliable.

Can the OC sell the lot for unpaid levies?

In some jurisdictions and in extreme cases, yes — but only after judgment, only with court orders, and only as a last resort. The threshold is very high; a sustainable payment plan defeats this risk entirely. In practice, owners corporations very rarely pursue a lot sale because the procedural cost is high and the political cost (selling out a fellow lot owner) is high. The risk is real but distant for any lot owner who is genuinely trying to pay.

What about the strata insurance excess and special levies?

Special levies (for one-off works) are still levy contributions and are recoverable in the same way as ordinary levies. The payment plan should cover both ordinary contributions and any unpaid special levy. If a new special levy is raised during the plan period, it is recoverable separately — the original plan does not cover it. Negotiate any special levy in advance if the committee is contemplating a substantial one.

PropertyAustralia

Strata Levy Payment Plan Request (Australia)

Falling behind on strata levies happens — and every Australian State and Territory has a recovery framework that anticipates it. New South Wales provides the strongest payment-plan protection: under s 85 of the Strata Schemes Management Act 2015, the owners corporation must not by resolution refuse to enter into payment plans, plans run for up to 12 months and recovery action is paused while the plan is being complied with. Queensland caps body-corporate penalty interest at 2.5% per month. The other jurisdictions have their own frameworks. Our free template is state-aware and treats the request as a serious without-prejudice negotiation: financial circumstances, interest pause, recovery costs, an ongoing-levy undertaking and a respectful escalation pathway through financial counselling and the tribunal. It is the kind of request committees actually approve.

Create Your Strata Levy Payment Plan Request

Free to useInstant PDFNo account required

PDF (free) + editable Word (.docx) with Expert

Strata Levy Payment Plan Request — Without Prejudice

Hardship Request Under Strata Schemes Management Act 2015 (NSW) · 12 June 2026

Priya N. Ramachandran

28 Albert Street, Unit 12, Surry Hills NSW 2010

0418 226 904

priya.ramachandran@email.com.au

12 June 2026

The Owners — Strata Plan No. 78214

c/- Eastside Strata Management Pty Ltd
Level 4, 199 Crown Street, Darlinghurst NSW 2010

LEVY PAYMENT PLAN REQUEST — LOT 12

Strata Plan No. 78214 (28 Albert Street, Surry Hills NSW 2010) · New South Wales

Dear owners corporation,

I am the lot owner of Lot 12 in Strata Plan No. 78214 (28 Albert Street, Surry Hills NSW 2010). I write to request a written payment plan over the outstanding levy contributions on my lot, set out below. This request is made under Strata Schemes Management Act 2015 (NSW) on a without-prejudice basis.

THE LOT OWNER AND THE SCHEME

Lot owner: Priya N. Ramachandran
Address: 28 Albert Street, Unit 12, Surry Hills NSW 2010
Telephone: 0418 226 904
Email: priya.ramachandran@email.com.au

Owners corporation: The Owners — Strata Plan No. 78214
Strata plan / community title scheme: Strata Plan No. 78214 (28 Albert Street, Surry Hills NSW 2010)
Lot: 12
Governing law: New South Wales, Australia

OUTSTANDING LEVY DEBT

Total arrears as at the date of this letter: 4,250.00 AUD
Period covered by the arrears: four quarterly contributions for the periods Q3 2025, Q4 2025, Q1 2026 and Q2 2026 (initially $980 per quarter; one quarter increased to $1,310 following the special levy of 18 February 2026)
Interest charged to date: 128.40 AUD
Recovery costs charged to date: 385.00 AUD

I acknowledge the levies as a debt owing to the owners corporation and propose to clear them through the payment plan set out below.

PROPOSED PAYMENT PLAN

Upfront payment on commencement of the plan: 500.00 AUD
Instalment amount: 375.00 AUD
Instalment frequency: monthly
Number of instalments: 10
Proposed start date: 1 July 2026

Brief context:
I have been the sole owner-occupier of Lot 12 since 2019. Following a reduction in my working hours in November 2025 my income has fallen materially, and I fell behind on the quarterly levies through Q3 2025 to Q2 2026. I expect to return to full-time hours by September 2026. This plan would clear all arrears, interest and recovery costs within 11 months from commencement.

STATUTORY RECOVERY FRAMEWORK

Recovery framework: the owners corporation may recover unpaid contributions as a debt in any court of competent jurisdiction, together with interest and reasonable recovery expenses; under s 86 the owners corporation must give the owner at least 30 days notice before commencing recovery action.

Payment plan framework: under s 85 the owners corporation and the owner may agree a written payment plan capped at 12 months (a further plan may be agreed); the owners corporation must not by resolution refuse to enter into payment plans, and must not take recovery action while a plan is being complied with.

Interest on unpaid contributions: a contribution not paid when due bears simple interest at 10% per annum under s 85 (or any other rate prescribed by the regulations).

Current recovery status: a written demand has been served.
I received a final demand from Eastside Strata Management on behalf of the owners corporation dated 18 May 2026 (reference EST-2026-LV-7821-12), citing the outstanding $4,250 in levies, $128.40 interest and $385.00 recovery costs and threatening NSW Local Court action if the arrears are not cleared within 30 days.

Prior payment-plan request: an informal payment-plan request has been raised verbally with the strata manager but no written response has been received.

FINANCIAL CIRCUMSTANCES AND HARDSHIP

Household income (approximate, per fortnight): 3,200.00 AUD
Essential household outgoings (per fortnight): 2,950.00 AUD
Dependants: one dependent child (8 years old, primary school)

Cause of the financial hardship: a material reduction in working hours or earnings
My working hours as a registered nurse were reduced from full-time (38 hours per week) to part-time (24 hours per week) from 6 November 2025 following the closure of the surgical unit at my hospital. I have accepted shifts at a second hospital part-time but the additional shifts only commenced in March 2026 and have not yet fully compensated for the income loss.

External support obtained: I have spoken to a financial counsellor at the National Debt Helpline (1800 007 007) on 28 May 2026; the counsellor reviewed my budget and confirmed that a $375 monthly instalment is sustainable from my current income.

PROPOSED PLAN TERMS

Without prejudice: this request is made on a without-prejudice basis. The figures and information in this letter may not be used against me in any subsequent recovery proceedings if a plan is not agreed.

Interest position: I request that default interest on the arrears be paused while the plan is being complied with — the principal will continue to accrue ongoing levies in the normal way.

Recovery costs already incurred: a 50% reduction of the recovery costs charged to date as part of the plan settlement.

Ongoing levy undertaking: I confirm that, in addition to the instalments above, all ongoing levies that fall due during the plan period will be paid in full and on time.

Plan total: the proposed instalments together with the upfront payment will clear the arrears in full by the end of the plan period.

Direct debit: I am willing to authorise a direct debit from my account to make the plan administratively simple for the owners corporation.

RESERVATION AND ESCALATION

If the plan is reasonably refused: if the owners corporation refuses this request, I will:

Engage a financial counsellor (free, accredited service via the National Debt Helpline 1800 007 007) to mediate a payment arrangement
Apply to the relevant State or Territory tribunal under the levy-recovery / hardship framework for an order pacing or staying recovery action
Pay any judgment costs at the level the tribunal orders, but reserve all rights to set aside or vary judgment on hardship grounds

Reservation of rights: all of my rights under Strata Schemes Management Act 2015 (NSW) and the general law are reserved.

CLOSING

Please confirm in writing within 21 days whether the owners corporation agrees to the plan, or whether the committee proposes alternative terms it is willing to accept. I am happy to discuss the plan with the strata manager or the treasurer if that would assist. I would like to clear the arrears without recourse to tribunal action.

Yours faithfully,

Priya N. Ramachandran

LOT OWNER

Priya N. Ramachandran

Date: ____________________

Available as a print-ready PDF or an editable Microsoft Word (.docx) file.

What Is a Strata Levy Payment Plan Request?

A strata levy payment plan request is a formal without-prejudice request from a lot owner to the owners corporation / body corporate for a written instalment plan over outstanding levy contributions. The plan typically combines an upfront payment on commencement, an instalment amount paid weekly, fortnightly or monthly, an interest pause while the plan is being complied with, and an ongoing-levy undertaking that current levies continue to be paid as they fall due. The request is the standard first step before tribunal hardship proceedings — and produces approval far more often than refusal.

New South Wales sets the most protective framework. Under s 85 of the Strata Schemes Management Act 2015 (NSW), the owners corporation must not by resolution refuse to enter into payment plans, plans are limited to a 12-month period (a further plan may be agreed), and unpaid contributions accrue simple interest at 10% per annum. Under s 86 the owners corporation must give the owner at least 30 days notice before commencing recovery action, and must not take recovery action while a plan is being complied with. The combination of these provisions effectively forces the OC to consider a reasonable plan, and protects the owner from collateral recovery action while they pay.

Queensland applies the Body Corporate and Community Management Act 1997 (Qld) — penalty interest of up to 2.5% per month (30% per annum simple) on overdue contributions, 30-day notice of contributions due, and a requirement that the body corporate start recovery within 2 months of a 2-year overdue debt. Victoria applies the Owners Corporations Act 2006 (Vic) — recovery through VCAT or the Magistrates Court, with instalment arrangements at the committee's discretion. Western Australia, South Australia, Tasmania, the ACT and the Northern Territory each have their own frameworks under their respective titles Acts.

The request must be credible: realistic financial circumstances, a sustainable instalment amount, an ongoing-levy undertaking and (ideally) a financial counsellor reference. Committees are made up of fellow lot owners; they approve plans that are clearly sustainable and refuse plans that look fanciful. Our template structures the request the way committees actually evaluate it — with the right state framework, the right financial detail and the right escalation pathway.

What's Covered in This Template

Our Australian Strata Levy Payment Plan Request covers every element a strata committee needs to evaluate the request — financial detail, plan terms and a respectful escalation pathway.

Your Details

Your name, address, contact details — the lot owner making the request.

Governing State (state-driven)

NSW / Victoria / Queensland / WA / SA / Tasmania / ACT / NT — selects the right strata Act, levy-recovery framework and interest position.

Owners Corporation / Body Corporate

The strata authority you are writing to, the strata plan / CTS number and the lot number.

The Outstanding Levy Debt

Total arrears, period covered, interest charged to date and recovery costs charged to date.

Proposed Plan

Upfront payment, instalment amount, frequency (weekly / fortnightly / monthly), number of instalments and start date.

Expert: Statutory Recovery Framework

The state-aware Act, the recovery framework, the payment-plan framework, the interest position and the current status of any recovery action.

Expert: Financial Circumstances

Household income, essential outgoings, dependants, the cause of the hardship and any external support obtained (e.g. financial counsellor).

Expert: Plan Terms

Without-prejudice basis, interest pause request, recovery-costs treatment (waive / half / include in plan) and ongoing-levy undertaking.

Expert: Reservation & Escalation

Financial counselling (National Debt Helpline 1800 007 007), tribunal hardship application, external advice — what you will do if the plan is unreasonably refused.

Closing and Response Window

A 21-day window for the committee to confirm acceptance or propose alternative terms.

Lot Owner Signature

LOT OWNER signature block.

How to Create a Strata Levy Payment Plan Request

Follow these steps to produce a credible without-prejudice hardship request the committee can approve.

1
Identify Yourself and the State
Enter your name, address, contact details and the State or Territory of the lot. The State selects the strata Act and the levy-recovery framework — NSW provides the strongest payment-plan protection.
2
Identify the Owners Corporation and the Debt
Enter the legal name of the OC / body corporate, the strata plan / CTS number, the lot number, the total arrears, the period covered, and any interest and recovery costs already charged.
3
Propose the Plan
An upfront payment on commencement (even a modest sum signals good faith), an instalment amount (sustainable from current income), a frequency (monthly is most common; fortnightly matches Centrelink / payroll), the number of instalments and a start date.
4
Add the Statutory Recovery Framework (Expert)
The state-aware Act, the recovery framework, the payment-plan framework, the interest position and the current status of any recovery action — this anchors the request in the right legal framework.
5
Add the Financial Circumstances (Expert)
Household income (approximate per fortnight), essential outgoings, dependants and the cause of the hardship (job loss, illness, reduced hours, family breakdown, other). If you have spoken to a financial counsellor (free via the National Debt Helpline 1800 007 007), reference their endorsement.
6
Set the Plan Terms (Expert)
Make the request on a without-prejudice basis (protects the figures in any later proceedings); request an interest pause during the plan (prevents the debt growing); propose treatment of recovery costs (waive, half, or include in plan); commit to keeping ongoing levies paid in full during the plan.
7
Add the Escalation Pathway (Expert)
What you will do if the plan is unreasonably refused — engage a financial counsellor, apply to the tribunal for hardship orders, reserve all rights. A respectful escalation pathway frequently produces approval.

Why Doxuno documents are different

Four things that make our templates more thorough than AI-generated drafts and more current than static template libraries.

Accurate

Country-specific legal content

Drafted with legal expertise for each jurisdiction, far more thorough than AI-generated drafts that copy generic clauses across borders.

Always current

Always current with the law

Templates carrying statute references are continuously updated as the law changes. Your document always reflects the current legal framework.

Free PDF

Print-ready PDF

Free to download. Vector text, embedded fonts, statute citations baked in. Print, sign, file. Ready for any signing flow including electronic signature.

Word · .docx

Editable Word (.docx)

Continue editing in Word after download. Add custom clauses, reuse the template for similar agreements, or share with a colleague for collaborative review.

Requires Expert one-time unlock or any paid Doxuno subscription.

Legal Considerations

Australian strata levy recovery is governed by State legislation that anticipates financial hardship — used well, the framework strongly favours sustainable repayment over recovery action.

This template is for informational purposes only and does not constitute legal or financial advice. For substantial arrears, complex circumstances or unreasonable refusal by the OC, obtain advice from a financial counsellor (free via the National Debt Helpline 1800 007 007) or an Australian strata lawyer.

Reviewed for Australian strata levy recovery

The NSW Protection Framework

New South Wales provides the strongest statutory protection for lot owners. Under s 85 of the Strata Schemes Management Act 2015, the owners corporation must not by resolution refuse to enter into payment plans, plans run for up to 12 months, and unpaid contributions accrue simple interest at 10% per annum. Under s 86, the owners corporation must give the owner at least 30 days notice before commencing recovery action, and must not take recovery action while a plan is being complied with. Citing the right sections at the top of the request shows the committee that the lot owner knows their rights — and dramatically increases the likelihood of approval.

The Queensland Interest Cap

Queensland sets a statutory cap on penalty interest at 2.5% per month (30% per annum simple) under the regulation modules to the Body Corporate and Community Management Act 1997. Importantly, the body corporate may waive the penalty interest in part or in whole if there are special reasons — financial hardship is a recognised special reason. Queensland also requires the body corporate to start recovery within 2 months of a 2-year overdue debt, which can be useful where the committee has been silent.

Without-Prejudice Basis

The request should be made on a without-prejudice basis, which means the financial figures and admissions in the letter cannot be used against the lot owner in any subsequent recovery proceedings if the plan is not agreed. This is the standard approach for hardship negotiations in Australia and protects the lot owner from unintended adverse consequences. Always include the without-prejudice notation in the request.

Ongoing-Levy Undertaking

Almost every committee that approves a payment plan does so on the explicit basis that current levies continue to be paid in full and on time during the plan. Without an ongoing-levy undertaking, the arrears keep growing while the plan is being paid and the committee sees no genuine return to compliance. The undertaking should be explicit in the request and the lot owner must be able to make it good — sustainability is essential.

Financial Counselling

The National Debt Helpline (1800 007 007) provides free, accredited financial counselling. A financial counsellor can review the lot owner's budget, confirm the proposed plan is sustainable and mediate the negotiation with the body corporate. Strata committees treat the involvement of a financial counsellor as confirmation that the figures are reliable — referencing the counsellor's endorsement in the request significantly strengthens its prospects.

Frequently Asked Questions

Submit a State-Aware Payment Plan Request

Select the State or Territory, describe the arrears and the proposed plan, set out your financial circumstances and produce a credible without-prejudice hardship request that the committee can approve — ready to send. Cross-link to the Doxuno Australian Strata By-Law Breach Notice template for related strata matters and the Centrelink Review Request template for the broader hardship pathway.

Create Your Strata Levy Payment Plan Request Browse All Templates

Free PDF · Editable Word with Expert · No account required