An owners corporation can charge interest on any amount payable by a lot owner that is overdue, but cannot charge an 'administration fee'. The interest rate must not be more than the maximum set out on the Department of Justice Penalty interest rate page.
The owners corporation must authorise any decision to charge interest on overdue payments by resolution at a general meeting.
An owners corporation may choose to waive penalty interest in a particular case. Such a decision must be reported to the annual general meeting, including the reasons for the decision.
As Victoria's consumer affairs regulator, we help owners corporation managers and lot owners understand their rights and responsibilities.