Decrease in levies

At the AGM the owners decided to increase the levies by 20% (based on the budget provided). The Trustees want to now decrease the levies and say that they are entitled to do so at the financial yearend of the complex

The Trustees in this case is 50% correct – PMR 21(3)(b) does give them a right in terms of levies at the financial yearend but it is only a right to increase levies – and only by a maximum of 10%.  The STSM Act does not give Trustees the right to decrease levies.


They will have to call a SGM or wait for the AGM to approve a new budget and decrease levies.


One should also always be careful to decrease levies – there should be very good reasons for doing so as you don’t want the complex to have negative cashflow and not be able to cover their expenses.

PMR 21(3)The body corporate may, on the authority of a written trustee resolution—

(b) increase the contributions due by the members by a maximum of 10 per cent at the end of a financial year to take account of the anticipated increased liabilities of the body corporate, which increase will remain effective until members receive notice of the contributions due by them for the next financial year; provided that the trustees must give members notice of such increased contributions by notice in terms of rule 25, with such changes as are required by the context;