This article was authored by VIC Senior Associate Eve Whitmore and peer-reviewed by Solicitor Justine Nguyen.
The proper issuance of fee notices by owners corporations (OC) is essential for the lawful recovery of levies and to preserve the enforceability of debts owed by lot owners. Recent amendments to the prescribed fee notice form by Consumer Affairs Victoria (CAV) clarify lot owners’ obligation to pay fees and outline the consequences of non-payment.
This article examines the statutory requirements for OC fee notices and recent reforms, offering guidance on best practice to ensure enforceability.
Statutory Framework
Statutory Framework
OCs have the power to levy annual and special fees on lot owners pursuant to sections 23 and 24 of the Owners Corporations Act 2006 (Vic) (OCA).
Annual fees cover ongoing expenses such as administration, maintenance, insurance, and, where applicable, contributions to an approved maintenance plan.
Special fees and charges may be imposed for extraordinary or unforeseen costs not accounted for in the annual budget, including urgent repairs or emergency works. A special resolution is required where special fees exceed twice the total amount of current annual fees.
Both types of fees are generally calculated based on lot liability. However, if a particular lot is responsible for, or disproportionately benefits from, additional costs, the OC may require that lot to pay more in accordance with the benefit principle. That is, the more a lot benefits or contributes to the cost, the more its owner may be liable to pay.
The OC may determine the times for payment of annual and special fees and charges. However, fee notices are generally issued by OCs on a quarterly or half-yearly basis.
Recent Amendments to the Prescribed Form
Recent Amendments to the Prescribed Form
In addition to the information required on a fee notice under section 30 of the OCA, as of April 2025, OCs have been required to include the following additional information in their fee notices:
- if a lot owner is experiencing financial hardship, they may contact the owners corporation or the owners corporation manager to request a payment plan;
- contact information for the National Debt Helpline; and
- resolving disputes though the Dispute Settlement Centre of Victoria.
Fee Notices
Fee Notices
If a lot owner fails to pay the fees detailed in their Fee Notice, the OC may issue a final fee notice. The final fee notice may be issued at any time following the expiry of the initial 28-day payment period.
Similar to fee notices, as of April 2025, final fee notices must include, among other things, the following:
- if the lot owner is experiencing financial hardship, they may contact the owners corporation or the owners corporation manager to request a payment plan;
- contact information for the National Debt Helpline; and
- resolving disputes though the Dispute Settlement Centre of Victoria.
Failure to use the updated form after its implementation may lead to procedural invalidity. OCs are strongly advised to ensure that management companies and committees are using the most current CAV issued templates.
Conclusion
Conclusion
The issuance of fee notices by OCs is not merely administrative; it is a statutory process governed by strict compliance requirements. The evolving legal landscape, including the latest amendments to the prescribed forms, reinforces the need for diligence and procedural rigour. Consequently, OCs should regularly audit their notice procedures to avoid costly disputes and ensure recoverability of contributions owed.
Should you require assistance in ensuring your OC’s fee notices comply with current legislative requirements and prescribed forms, please contact our office for further advice and support.
© Bugden Allen Group Legal Pty Ltd. This is general information only and not legal advice. You should not rely on this information without seeking legal advice tailored to your specific circumstances.
