In response to the economic effect of the COVID-19 pandemic, the Queensland Government introduced the COVID-19 Emergency Response Act (2020) in April 2020 as temporary legislation to assist schemes to continue to operate under the new conditions we were all facing. One of the outcomes of this temporary Act was that Bodies Corporate were prohibited from charging penalty interest on overdue levies until the expiry of the Act.
The COVID-19 Emergency Response Act (2020)is now set to expire on 30th April 2022, which means schemes that had previously approved charging penalty interest on overdue levies will again begin charging.
Many schemes have opted to charge penalty interest, which can be set at a rate of up to 2.5% per month (30% per annum). Penalty Interest has proven to be a useful tool for some schemes to ensure owners are paying on time and the Body Corporate can meet its financial obligations, however Committee’s do have the power to waive penalty interest in exceptional circumstances. When considering whether to approving waiving the penalty interest Committee’s will often take in to account the cash flow of the Body Corporate, your previous payment history and the details of your circumstances that are resulting in the late payment. It is important to communicate with your Committee as early as possible if you are experiencing any issues with on time payment of your levies.
To ensure that you are aware of your levy due dates it is important to review the Minutes of your schemes meetings and to keep your contact details up to date with your Body Corporate Manager. You can update your contact details or opt to have your levy notices sent to you by email using the Online Forms section of our website. You can also review previous meeting minutes and check the current status of your levies by logging on to our Portal or contacting our friendly team.
More information regarding COVID-19 in Bodies Corporate can be found here.