How much interest can be charged on overdue levies?

The BCCM Act allows the body corporate to charge interest on overdue levies at a rate of up to 2.5% per month (equivalent to 30% per annum). This rate must be set or confirmed at the AGM. If no rate is set by the body corporate, interest can still be charged at the statutory rate prescribed under the regulations. Interest compounds monthly on the unpaid balance, meaning it accumulates quickly. For example, $1,000 overdue for six months at 2.5% per month becomes approximately $1,160 — before any debt recovery costs are added. This is a deliberate incentive to keep levies current, and one of the strongest reasons to contact the body corporate manager immediately if you are having difficulty paying. This article is general information only and not legal advice.