The body corporate is funded entirely by its members (the lot owners). Legislation requires that each financial year the body corporate set budgets for each fund, and raise contributions from owners to meet that expenditure. These contributions from owners are the levies.

Most bodies corporate operate two distinct funds, the purpose of which is determined by the relevant regulation module.

Administrative fund
The administration fund is intended to cover expenditure for maintenance of the common property and assets (e.g. garden maintenance, pool cleaning), as well as other items of recurrent expenditure (e.g. professional fees, electricity, pest control). The body corporate is also required to insure the common property for replacement value, public liability, and depending on the structure of the scheme, may also be required to insure the buildings on scheme land. The body corporate pays the insurance premium, and collects this premium from the owners by way of levies.

Sinking fund
The sinking fund is a long-term maintenance fund designed to provide for the ongoing maintenance of the common property and body corporate assets. The sinking fund levies are set based on a projection of expenditure over at least 10 years, and this report is normally provided by an expert third party. The sinking fund balance will fluctuate as levies are paid in and capital works are undertaken, however the goal of the sinking fund is to avoid the need for owners to contribute additionally via special levies to the cost of anticipated works (like replacing the roof).

At the annual general meeting (AGM) each year, the body corporate votes to accept budgets for each of the funds (prepared by, or in consultation with the committee), and set levies for the financial year based on those budgets.

The body corporate manager does not have input into the fixing of levies. The levies are paid to the body corporate account, but may be collected by the body corporate manager on their invoicing system on behalf of the body corporate.

The body corporate may charge interest on overdue levies and this interest is limited by the legislation to a maximum of 30% simple interest per annum.

The committee is responsible for overseeing levy payment and enforcing payment of body corporate levies. If levies remain unpaid for a time, the committee may commence debt recovery proceedings against that owner to recover the amount of the levies, any penalty for not paying the levies and any recovery costs reasonably incurred by the body corporate as a debt. If a contribution has been outstanding for a period of more than 2 years, the committee must commence debt recovery proceedings against the lot owner.

Prompt Strata will automatically undertake several levy debt recovery steps prior to contacting the committee for instructions. This is authorised in the Prompt Strata service  agreement.

• Initial levy notice (30 days before due date)
• Reminder levy notice (15 days after due date)
• First arrears notice (30 days after due date)
• Second arrears notice (45 days after due date)
• Letter of demand (60 days after due date) – sent by registered post with delivery receipt

If a levy debt remains unpaid after the letter of demand expires, Prompt Strata  will seek further instructions from the committee on how to proceed with collection action. This may include Prompt Strata continuing to monitor until the next levy becomes overdue, or referral to a body corporate lawyer for recovery through the Queensland court system.

To check your levy balance, visit the OWNERS PORTAL and go the payments section. For full payment options, refer to your levy notice (invoice).

Please note:

• Credit card payments can be made via OWNERS PORTAL, however a surcharge does apply
• Prompt Strata does not accept levy payments directly – payment can only be made using one of the options on your levy notice.
• Cash payments can only be made in person at Australia Post.
• All cheques must be made payable to the name of your body corporate.

By Laws are  a set of rules that govern the behaviour of any owner or occupier of a lot. Every Body Corporate has a set of registered by-laws specific to their Body Corporate contained within the Community Management Statement (CMS). A tenant must be provided with a copy of the by-laws when they enter into a lease agreement. Lot owners can obtain a copy of their Body Corporate By laws from Prompt Strata upon request. Tenants are obliged to comply with the by laws in the same way that they apply to a lot owner. This also places an obligation on invitees to comply.

More often than not the Body Corporate Manager is asked to intervene and help mediate or enforce a By Law. It should be stressed that lot owners and lot occupants have the same rights in seeking to enforce a by law as the Body Corporate. The Body Corporate should only respond to an alleged breach of By Law if the complainant outlines the issue in writing and is not vexatious or defamatory in nature.