86Recovery of unpaid contributions and interest

#### 86 Recovery of unpaid contributions and interest 86 Recovery of unpaid contributions and interest > > (1) The Tribunal may order the owner of a lot in the strata scheme, or other person, to pay a contribution that is payable by the owner or other person under this Act that is not paid at the end of 1 month after it becomes due and payable, together with any interest payable on that unpaid contribution and the reasonable expenses of the owners corporation incurred in recovering those amounts. > > > (2) The Tribunal may make an order under subsection (1) only— > > > > > (a) on the application of the owners corporation, and > > > > > (b) if proceedings between the owners corporation and the owner of a lot in the strata scheme or other person are pending before the Tribunal. > > > (2A) An owners corporation may, without obtaining an order under this section, recover as a debt in a court of competent jurisdiction, a contribution not paid at the end of 1 month after it becomes due and payable, together with any interest payable on that unpaid contribution and the reasonable expenses of the owners corporation incurred in recovering those amounts. > > > > Note. > > > > Clause 6 of Schedule 4 to the [Civil and Administrative Tribunal Act 2013](/view/html/inforce/current/act-2013-002) provides for the transfer of proceedings between the Tribunal and a court which has jurisdiction (and vice versa) if the parties to the proceedings agree or if the Tribunal or court of its own motion or on the application of a party so directs. > > > (3) Interest paid or recovered forms part of the fund to which the relevant contribution belongs. > > > (4) An owners corporation must not take action to recover an amount under this section unless it has given the person against whom the action is to be taken at least 30 days notice of the action. > > > (5) The notice of the action must set out the following— > > > > > (a) the amount of the contribution, interest or expenses sought to be recovered, > > > > > (b) the recovery action proposed, > > > > > (c) any other matter prescribed by the regulations for the purposes of this subsection. > > > (6) An owners corporation must not take action to recover an amount under this section from an owner if— > > > > > (a) the amount is being dealt with under a payment plan, and > > > > > (b) the payment plan is being complied with by the owner. > > > (7) Payments by an owner in arrears must be applied in the following order— > > > > > (a) to contributions, in order of due date, > > > > > (b) to interest, > > > > > (c) to expenses of the owners corporation in recovering contributions ordered to be paid under this section. > > > (8) Subsection (7) does not apply to the extent that— > > > > > (a) a court or the Tribunal has made an order specifying how payments must be applied, or > > > > > (b) the owner in arrears specifies how payments must be applied. > > **s 86:** Am 2016 No 54, Sch 1.15 \[3\]; 2025 No 14, Sch 1\[32\] \[33\].