More ABC News Focus on Strata [this time about strata levy bankruptcies]
Just when you thought it was safe to turn on ABC without getting a strata scare … ABC News is back with more reporting of strata crises.
This news report focuses on the problem of overdue strata levies and the consequences for strata owners when recovery action starts, reporting that over half of all bankruptcy proceedings in the ACT relate to strata levies and that consumer advocates are calling for rights for payment plans.
This echoes similar trends elsewhere in Australia, where changes are being made to require options for overdue strata levies and curtailing when and how recovery action can be taken.
It’s a bad look for the strata sector that it causes a disproportionate number of bankruptcies, which is becoming harder and harder to defend.
So, it’s likely the future for strata buildings may involve less strata levy debt collection and more financial management and planning to carry arrears for longer.
You can watch the ABC News report here.
 | A guest post by
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In Vic the Maintenance Plan is only required by certain tiers.
An implemented 10 year plan means that all owners who benefit by having a non leaking roof, a working security system etc contribute to their maintenance.
Not having a maintenance plan is like playing reverse musical chairs - the music stops and those still in the building are the ones left paying the bill.
This is different to an owner who can choose how much and when to spend on maintenance. In this case there is no forced bankruptcy.