A personal approach
to body corporate management
That’s why we take the time to listen, tailoring our management approach to suit every person, their communication style and business preferences.
Receive an obligation
free proposal
Please contact us here if you are seeking a proposal for a building we don’t currently manage. If you are an existing BCsystems customer please email us at info@bcsystems.com.au
Requesting a payment plan can provide short-term relief if you’re struggling to meet your body corporate levy obligations.
But what happens if your application is rejected?
While many committees are willing to work with owners who demonstrate genuine financial hardship, there are situations where a payment plan won’t be approved.
Why Your Payment Plan May Be Rejected
A body corporate committee has the authority to approve or decline payment plans. Common reasons for rejection include:
- Insufficient Information Provided
If your application doesn’t clearly outline your financial circumstances, repayment schedule, or supporting documents (if requested), the committee may not have enough information to approve your request. - Unrealistic Repayment Proposal
Offering instalments that are too small, inconsistent, or unlikely to clear the debt within six months may be seen as unworkable. Committees generally expect the arrears to be paid within a reasonable timeframe. - Ongoing Non-Payment History
If you have a history of missed levies, previous defaulted payment plans, or long-term arrears, the committee may not believe another plan will succeed. - Failure to Pay New Levies
A payment plan only covers arrears. If you’ve also failed to keep up with current levies, the committee may decline your application. - Refusal to Provide Supporting Evidence
If you claim financial hardship but refuse to provide any documentation, the committee may question the validity of your request. - Dispute Rather Than Hardship
Payment plans are not a tool for owners who are refusing to pay levies due to disagreements with the committee or dissatisfaction with decisions. In these cases, debt recovery, not a payment plan, is the process.
What Happens If Your Plan Is Rejected
If your request is rejected, your levy arrears remain due in full, and the body corporate can continue recovery action. This may include:
- Referral to debt recovery agents or solicitors
- Accruing penalty interest on overdue levies
- Additional legal or recovery costs being charged to your account
- Potential court or tribunal proceedings to enforce payment
The consequences of non-payment can escalate quickly, increasing your financial burden.
What You Can Do Next
If your payment plan is rejected, you still have options:
- Clarify the Reasons
Ask your body corporate manager or committee for feedback. Understanding why your application was denied may help you revise and resubmit a more realistic proposal. - Submit a New Application
If your first plan was considered unrealistic, consider adjusting your payment schedule or providing further evidence of hardship to strengthen your case. - Pay What You Can
Even if a formal plan isn’t approved, making consistent partial payments shows good faith and reduces the total debt. - Seek Financial Counselling
Free financial counselling services (such as the National Debt Helpline) can help you create a workable repayment strategy and may provide supporting documentation for a new application. - Communicate
Silence is the worst option. If you ignore the debt, costs will increase and legal action is more likely. Keep the committee informed about your situation, even if your plan was declined.
For more, see our article on what happens if you can’t pay your body corporate levies.
Related content
Share This Post
Subscribe To Our Newsletter
More To Explore
Preparing an AGM Agenda
Because only matters properly listed on the agenda can be voted on, getting the agenda right is essential to ensuring the meeting runs smoothly and resolutions are legally valid.
Fencing Repairs in a Body Corporate
While fences may appear simple, determining who is responsible for their maintenance, repair or replacement can be anything but. The answer depends on where the fence is located, who it separates, and which legislative framework applies.