Article: strata levy recovery and the requirement for expenses to be reasonable, but not proportionate

The NSW Supreme Court has reminded us of the requirement for section 80 levy recovery expenses to be ‘reasonably incurred’ and ‘reasonable in amount’. If there is any doubt, costs will be referred for assessment.

IIB Australia Pty Ltd v Owners Strata Plan 76024 (No 2) [2015] NSWSC 929 (16 July 2015) was an appeal from a decision of the Local Court. In the Local Court proceedings, the Owners Corporation claimed against a lot owner:-