Levy increase by the Trustees

The Trustees increased our levies without consulting us and did not give us 30 days' notice of the increase. Surely this increase is then not legal?

The Trustees have the right to increase levies with a maximum of 10% without consulting the owners – but this can only be done at year-end.

Quote from the STSM Act:

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;

There is no prescription in the Act with regards to how much notice the owners should receive for levy increases – there is nothing stating that they should receive 30 days’ notice but obviously that would be best practice and transparent.

The STSM Act does however state that owners need to be informed of levy amount changes within 14 days after the AGM.

PMR 25.                                         

(1) The body corporate must, as soon as possible but not later than 14 days after the approval of the budgets referred to in rule 17(6)(j)(iv) by a general meeting, give each member written notice of the contributions and charges due and payable by that member to the body corporate, which notice must‑

(a)      state that the member has an obligation to pay the specified contributions and charges; and 

(b)      specify the due date for each payment; and

(c)       if applicable, state that interest at a rate specified in the notice will be payable on any overdue contributions and charges; and

(d)      include details of the dispute resolution process that applies in respect of disputed contributions and charges.