Levy Management and Arrears Recovery Guide

Stratapilot · Help Centre Last updated: June 2026

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Overview

Levies are the periodic financial contributions required from each lot owner to fund the body corporate's administrative and sinking (capital works) funds. Stratapilot manages the full levy lifecycle — from creating a levy run through to issuing notices, recording payments, tracking arrears, and initiating debt recovery actions.

Platform scope: Stratapilot records and tracks levy management. Formal legal debt recovery (applications to QCAT, NCAT, VCAT, SAT, or equivalent) must be conducted outside the platform by a lawyer or licensed debt recovery agent.

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Who Can Manage Levies

Action	Treasurer	Chairperson / Secretary	Ordinary Member	Viewer
Create levy run	✅	✅	❌	❌
Issue levy notices	✅	✅	❌	❌
Record manual payments	✅	✅	❌	❌
Configure bank connection	✅	❌	❌	❌
View arrears report	✅	✅	✅	❌
Set up payment plan	✅	✅	❌	❌
Generate demand letter	✅	✅	❌	❌

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Step 1 — Creating a Levy Run

A levy run defines the amount and instalment schedule for a levy period (e.g. quarterly).

1. Go to Levies in the main navigation.
2. Click New Levy Run.
3. Choose the levy type:
   • Administrative Fund — covers day-to-day operating expenses
   • Sinking Fund / Capital Works Fund — covers major repairs and capital expenditure
4. Choose the calculation method:
   • Flat — the same dollar amount for every lot
   • Proportional — calculated based on each lot's contribution schedule (lot entitlement fractions)
5. Enter the total amount for the period and select the instalment split (e.g. quarterly = 4 instalments).
6. Set the due dates for each instalment.
7. Click Save and preview to review per-lot amounts before issuing.

Lot entitlements are set in Settings → Lot Management. Ensure these are correct before creating proportional levy runs.

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Step 2 — Issuing Levy Notices

Once the levy run is saved and reviewed:

1. Click Issue notices.
2. The platform generates a notice for each lot owner with:
   • Lot number and owner name
   • Amount due and due date(s)
   • A unique reference ID (used for payment matching)
   • Bank account details (if configured)
3. Notices are sent by email to each lot owner's registered address.

The reference ID on each notice is critical — it is used by the automated bank reconciliation system to match incoming payments to the correct levy record. Instruct lot owners to include the reference ID in their payment description.

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Step 3 — Recording Payments

Automatic reconciliation (bank statement import)

If the treasurer imports a bank statement CSV:

1. Transactions are read from the uploaded CSV (a dry-run preview runs first).
2. The system attempts to match each transaction to an outstanding levy:
   • Step 1: Reference ID lookup (exact match on the unique code in the payment description)
   • Step 2: Levenshtein fuzzy match (partial reference match with configurable tolerance)
   • Step 3: Amount guard (rejects fuzzy matches where the transaction amount differs by more than 5%)
3. Matched payments are automatically recorded against the lot's levy balance.
4. Unmatched transactions appear in Bank Transactions → Unmatched for manual review.

See the Bank Statement Import Guide for setup instructions.

Manual payment recording

1. Go to the relevant lot owner's levy record.
2. Click Record payment.
3. Enter the payment date, amount, and method (bank transfer, cheque, etc.).
4. Optionally add a reference note.
5. Save — the balance is updated immediately.

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Step 4 — Arrears Tracking

The Arrears section shows all lots with overdue levy balances.

Overdue status triggers

Condition	Status shown
Balance unpaid within 7 days of due date	Overdue
Balance unpaid 30+ days past due date	Significantly overdue
Balance unpaid 90+ days past due date	In arrears

The arrears report shows:

• Lot number and owner name
• Total outstanding amount
• Number of days since oldest unpaid instalment
• Last payment date

A compliance hint appears in the Arrears section when a lot is significantly overdue (30+ days), referencing your scheme's state-specific recovery rights.

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Step 5 — Debt Recovery Actions

Sending a demand letter

1. Open the lot owner's arrears record.
2. Click Generate demand letter.
3. The platform produces a pre-formatted letter including:
   • Total amount outstanding
   • Breakdown by instalment
   • Statutory interest accrued (if applicable)
   • Payment deadline (default: 14 days from letter date)
4. Review and customise the letter, then download the PDF.
5. Send to the lot owner via email or post.

The demand letter is a management tool. For formal legal recovery proceedings, engage a debt recovery lawyer or your strata management service.

Setting up a payment plan

1. Open the lot owner's arrears record.
2. Click New payment plan.
3. Enter the instalment schedule — amount and due date for each payment.
4. Save — the plan is recorded and the lot owner is notified by email.
5. Each plan payment is tracked separately; the lot's outstanding balance reduces as plan payments are received.

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State-Specific Recovery Rights

State	Statutory interest on overdue levies	Primary recovery tribunal	Legislation
QLD	Interest at the rate set in BCCM regulations (currently up to 2.5% per month on some fund types)	QCAT (Queensland Civil and Administrative Tribunal)	BCCM Act s104, BCCM (Standard Module) Regulation 2020
NSW	Interest at the rate of 10% per annum simple interest	NCAT (NSW Civil and Administrative Tribunal)	SSMA 2015 s85
VIC	Interest as set by the rules of the Owners Corporation	VCAT (Victorian Civil and Administrative Tribunal)	Owners Corporations Act 2006 s32
WA	Interest at the rate prescribed by regulations	SAT (State Administrative Tribunal)	Strata Titles Act 2020 s116
SA	Interest as set by the scheme's by-laws	SACAT	Community Titles Act 1996
TAS / ACT / NT	Varies — consult local legislation	Local civil tribunal	—

⚠️ Important: Interest rates and recovery procedures change with legislative amendments. Always verify current rates with your strata manager or a lawyer before issuing a demand that includes interest.

Disclaimer: Formal debt recovery proceedings (tribunal applications, judgment enforcement) must be conducted outside Stratapilot by a qualified professional. This guide documents platform features only and does not constitute legal advice.

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Frequently Asked Questions

What is the difference between Administrative Fund and Sinking Fund levies? Administrative Fund levies cover day-to-day operating costs (insurance, cleaning, management fees, minor repairs). Sinking Fund (or Capital Works Fund) levies accumulate for major future expenditure (roof replacement, lift overhaul, major painting). Most states require separate funds.

Can I issue levies for both funds in the same levy run? No — create separate levy runs for each fund type. This keeps records clean and ensures fund balances are tracked separately.

What happens if a lot owner sells their lot while in arrears? Levy debts are typically registered against the lot, not the person, and must be settled on settlement. The platform records do not automatically update on sale — you will need to update the lot owner record when the new owner is registered.

Can Stratapilot apply interest to overdue levies automatically? Not automatically in v1. Record interest manually using the "Record payment" screen with a negative amount adjustment, or include accrued interest in the demand letter amount. This is a planned enhancement.

What if bank reconciliation mismatches a payment? Review unmatched transactions in Bank Transactions → Unmatched. Select the transaction and manually link it to the correct levy. The system learns from manual corrections over time.

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This guide documents Stratapilot platform behaviour and does not constitute legal or financial advice. Always consult a licensed strata manager, accountant, or lawyer for advice specific to your scheme and state.