What is a backdated levy?

What is a backdated levy?

At the beginning of a new financial year the levy has to increase to cover increases in Body Corporate expenses. However, this increase may only be passed at an Annual General Meeting (AGM). Since the AGM can only be held once the audited annual financial statements have been released for the financial year that passed, a few months may have lapsed where levies are still charged at the previous financial year’s rate.

At the AGM when the new budget is accepted, the levy difference between the previous year’s and the current year’s is backdated for recovery.

i.e. The scheme's financial year ends on 31 March. The AGM is held in May. The new budget is approved and the levy is increased from R1500 to R1600 per month. In order to recover the levy increase of R100 per month for the months of April and May the levy is backdated and included on the June statement along with the June levies.

If a Scheme decides to portion the backed levy over a few months, this information is indicated on the statement as a fraction: 1/3. In this example, there will be 3 backdated levies and this line item was the first, of three.

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