I’ve sold property in the Eastern Suburbs for more than 35 years. I’ve watched every kind of market. One thing hasn’t changed. Owners who deal with money trouble early keep their options. Owners who wait lose them.

Strata levies are often where it shows first. A special levy lands. Hours get cut. A partner falls ill. One quarter slips, then two. Interest on overdue levies runs at 10% a year. Then the letters change tone.

Nobody likes talking about this. Most people I meet in this position have told no one. They sit on it for months, hoping the next quarter fixes it. It rarely does.

The rules changed in October 2025. They now favour the owner who asks early and asks properly.

What changed in NSW

From 27 October 2025, overdue levies are handled under a standard process. The short version:

One standard form

You ask using the Request for a Payment Plan for Overdue Contributions form. Your strata manager must make it available.

Up to 12 months

A plan can run for up to a year. Once it ends, another can be agreed.

Overdue levies only

The plan covers what you already owe. New levies still fall due as normal. This catches people out.

An answer in 28 days

The owners corporation must reply in writing. If it says no, it must give reasons that address your request.

No fees

You can’t be charged for asking, starting or continuing a plan. Committees can’t pass a blanket rule refusing all plans.

Breathing room

While a plan is in place and you’re keeping to it, recovery action can’t be taken. You must get at least 30 days’ notice before recovery starts.

Interest

You can ask for interest to be waived as part of your request.

A request can still be refused where agreeing would leave the administrative or capital works fund short. That’s fair. The building has bills too. Full detail is in the NSW Government guide to the strata law changes.

Why a self-check first

The worst request is one you can’t keep. Offer too much and you default in month three. Offer too little and it looks like you’re not trying. Either way, you’ve burned goodwill with your committee.

So before you fill in the form, get clear on where you stand. The eight questions below take about three minutes. They look at income, spending, savings, your mortgage, your levy position and what you could realistically repay.

Reading your result

• 0–20Low pressure. Things are manageable. If a levy has slipped, a quick call to your strata manager with a short catch-up plan usually sorts it.
• 21–45Moderate hardship. Real strain. Worth putting a formal plan in writing now, while you still have room to choose the terms. Ask about the interest.
• 46–75High hardship. Arrears are hard to absorb. Speak to a free financial counsellor before you commit to a repayment figure.
• 76–110Severe hardship. Act this week. If court or recovery documents have arrived, get independent financial or legal help straight away.

What I’d do next

1. Find a number you can keep. Not your best month. Your average month. It has to sit on top of your future levies, not replace them.
2. Get the standard form. Your strata manager must provide it. Fill it in honestly and keep a copy.
3. Ask about interest. At 10% a year it adds up. You’re entitled to ask for it to be waived.
4. Talk to someone free. The National Debt Helpline is on 1800 007 007. It’s confidential and it costs nothing.
5. Never ignore a court document. Silence is the one thing that turns a solvable problem into an expensive one.