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Hello Owners
A question was asked on WhatsApp recently about the levy discount rate. The committee is sending the answer via email so all owners can see it. We will also add it to the FAQ page at northmarque.net/faq. Summary
The minor change to the discount percentage only affects owners who do not pay their levies on time.
Given the adoption of the budget at the AGM and the minor nature of the amended discount, the Committee is comfortable with the body corporate’s position and that this change does not put owners at a disadvantage.
What was adopted at the AGM
The 2025–26 budget was adopted by ordinary resolution at the AGM on 15 April 2026. The Proposed Annual Budget (FY2025–26) was included with the voting papers. It clearly outlined the total levy contributions and the total discount amount if all owners paid on time.
The fund contributions per entitlement shown in that budget are the figures owners voted on. Both the administrative fund and sinking fund contribution resolutions passed.
The committee is unable to change or override resolutions passed by the general meeting. Levy notices have been issued in accordance with the adopted budget.
Why has the discount rate changed?
As owners may be aware, there were concerns around the previous body corporate manager. The 2025–26 budget was prepared by the previous body corporate manager and then finalised by the committee with the new body corporate manager. The committee is building a strong working relationship with the new Body Corporate manager, so these concerns are less likely in future financial years.
Does the slight reduction in discount rate affect what I pay?
The amount paid is unaffected by the discount rate when an owner pays by the due date. The discounted amount on an owner’s notice is what the body corporate needs to operate the scheme within the timeframe the levies are payable.
The amended discount rate only becomes relevant if an owner pays after the due date. In that case, the body corporate recovers a higher amount from an owner who pays late. Without limiting any rights the body corporate has to recover outstanding levies, this ensures that owners who pay on time are not responsible for additional costs which may be incurred because of owners who pay after the due date.
The reduced discount rate of about 13.5% in two of this financial year's levy notices results in a smaller gap between the on-time amount and the late amount than the 15% rate. That means, an owner who pays late under these notices will pay less for paying late than they would under the correct 15% rate – so the error, if anything, works in the owner's favour.
Levy notices for these instalments have been issued and the current instalment is due in accordance with your levy notice. Further questions about levy contributions can be emailed to the committee at community@northmarque.net, so we can properly record and respond, collate queries of a similar nature and update the FAQs as needed.
Kind regards
Tom Sturme
Chair
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