Banking – Tracsafe

June 2023 – DIY Body Corporate and BPAY for levy payments

trkwpbcm — Fri, 02 Jun 2023 04:27:54 +0000

We recently added support for levy payment by BPAY for our DIY bodies corporate. However, the issue of bank expenses for the body corporate will be difficult to justify for many small bodies corporate. Firstly, there is a bank setup fee, typically $150. Then there are monthly banking charges, typically $10 per month. Lastly, there are individual transaction fees (~ 80 cents) everytime a lot owner makes a payment by BPAY. An easier alternative is to use the Tracsafe Body Corporate Bookkeeping service, where payment of levies by BPAY is just one part of the service offering.

July 2018 – Bank transaction fees

trkwpbcm — Thu, 12 Jul 2018 21:44:09 +0000

Banks generally do not charge a transaction fee when depositing money into a bank account by cheque or by cash at a branch of the bank. In our case, we use Macquarie bank and the DEFT system for our fully managed and bookkeeper clients. Macquarie bank does not have their own branch network and uses the Australia Post outlets to perform that function. Macquarie does deduct a transaction fee ($2.75) when lot owners pay their levy at the post office using the DEFT system. There is no deduction if the lot owner pays by BPAY or by direct debit.

The percentage of people paying a levy at Post Office is less than 5% but the demographic using this service is highly skewed compared to the entire lot owner population. Given that many older lot owners are not electronically capable and are also part of a demographic sector that is least able to afford transaction fees, this can seem discriminatory. Consequently, when we onboard a new client, we give the committee an opportunity to consider a motion that redresses this transaction fee.

Whilst the committee can waive penalties, discounts and debt recovery fees, they can not waive a component of a levy. The impact of paying the expected levy at the Post office is to leave a residual amount of levy owing against the lot ledger. We suggest committees pass a resolution that the body corporate considers all Australia Post retail outlets to be integrated branches of the Macquarie bank network and as such all transaction fees associated with payments made by cash or by cheque through the Australia post outlets into the bank account of the body corporate shall be considered an expense of the body corporate.

Once resolved, our system software is enabled to ensure that the correct balances appear against the lot ledger and that the transaction fees are assigned to the bank charges expense account of the body corporate. We think this resolution would easily pass the reasonable test whilst the majority of other banks continue to not impose a transaction fee for paying in money over the branch counter by cash or cheque.

Banking: KIS

trkwpbcm — Wed, 26 Oct 2016 03:49:00 +0000

Recently we received a new client using three different bank accounts. One for levies, one for admin fund and one for sinking fund. Hundreds of transactions between three different accounts quickly pile up into a complicated tangle that will take ages to unravel come EOFY. This system is both complex and unnecessary! With sophisticated software (such as our own) one bank account is all you need, and significantly simpler.

Another banking complication we often find with clients is issuing both discounts and penalties on levy payment. Without good software to track payments this system quickly becomes increasingly complex as everyone pays a different amount.

Remember, Keep It Simple! Your records will be easier to follow and your free time will increase.

Settlement

trkwpbcm — Fri, 26 Jun 2015 04:17:09 +0000

New lot owners are often confused by the settlement process between buyer and seller and what happens with levies and lot ledger balances.  The BCCM regulations state S79 (Small Schemes Module) and S145 (Standard Module) that –
A liability to pay a body corporate debt in relation to a lot is enforceable jointly and severally against … a person who becomes an owner of the lot before the debt is paid.
When there is an outstanding debt against the lot on date of settlement, this is usually handled in the following way – A cheque (usually a bank cheque from settlement proceeds) is sent by one of the settlement lawyers (usually the buyer’s lawyer) to the Body Corporate.  The lawyers will have adjusted the settlement price between the buyer and the seller to take account of the debt.  The reason why the buyer’s lawyer takes responsibility is because if any issue arises regarding non-payment, it is the buyer that is most interested in seeing the issue resolved since the Body Corporate is continuing to issue outstanding debt notices to the new lot owner.   Another reason is that a BCCM form 8 must be submitted to the Body Corporate advising of the new lot ownership and this is usually submitted by the buyer’s lawyer with cheque attached (if applicable).
Body Corporate Treasurers and Body Corporate Managers are not responsible in any way for payments at the time of settlement.  Lot ledger levies and debts will be issued and re-issued to whoever is the current lot owner.  Penalties (if in place) will accrue if debts remain unpaid.