Notice of increase in levies

The Trustees increased our Body Corporate levies but they did not give us proper notice of this.  What is the prescribed notice period?

There are two instances where levies can be increased:

  • By the Trustees at the beginning of the financial year
  • By the owners at an Annual General meeting

If you look at the Trustees increasing the levies the STSM Act states that notice must be given ito Rule 25

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; And PMR 25 is also when the owners at a general meeting approved a budget to increase the levies: 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)(i.e. administrative and reserve fund budgets )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‑
  • state that the member has an obligation to pay the specified contributions and charges; and
  • specify the due date for each payment; and
  • if applicable, state that interest at a rate specified in the notice will be payable on any overdue contributions and charges; and
  • include details of the dispute resolution process that applies in respect of disputed contributions and charges.

So in both instances notice must be sent within 14 days of the approval of the budget.

The Act does not state that you have to give 30 days warning that the levies will increase, but it is a good practice to do so – in the sake transparency.