By the Paddocks Club team

Below are examples of two questions on the Paddocks Club discussion forum, to show you what is available to our Community members!

Levy discount and interest on levies paid in advance

Member’s question:

Good day Paddocks,

Is it possible for the trustees of a body corporate to

(a) Provide a levy discount for advance levy payments


(b) Provide interest to the member for advance levy payments.

I will appreciate your views and also any other suggestion you may have for the encouragement of advance levy payments for a body corporate.

Thank you.

Graham’s answer:

Dear member,

On (a). Yes. See PMR 26(1)(e). The discount must be budgeted for, i.e. approved by owners at the AGM, and cannot exceed 10% of the total contribution.

On (b). There is nothing in the law that allows a BC to pay owners interest on pre-paid levies, but the scheme could make a management rule that allows this. However, I suggest that this needs to be thought through very carefully. The cost of the admin involved in calculating and paying interest on pre-paid levies dealing with queries etc is likely to be very high, and there may be tax implications that I am not aware of.

My other suggestion:

The BC can arrange to have contributions paid at any intervals – there do not have to be monthly instalments.

So, for example, levies can be made payable quarterly in advance. This example would get rid of 3/4 of the work involved in sending out statements and receipting payment (which would allow the MA to make more profit) and a much streamlined collections procedure, as you would be able to chase larger outstanding debts payments.

(By the way, obligatory quarterly payment of contributions and discounts for annual payment in advance is normal practice in all the Australian jurisdictions.)


Payment of stipend to owner

Member’s question:

Hi Graham

Please advise if an owner in a complex, who is not a trustee, can be paid a basic stipend to assist with access control and day to day overseeing of contractors, staff etc.


Graham’s answer:

Dear member,

Yes, this is completely legal, but this payment must be budgeted for and an employment contract will be be required.

Kind regards

Article reference: Paddocks Press: Volume 17, Issue 7.

Graham Paddock is available to answer questions on the Paddocks Club discussion forum for Community members. Get all your questions answered by joining Paddocks Club.

This article is published under the Creative Commons Attribution license.

Back to Paddocks Press – July 2022 Edition.