To help committees and lot owners understand the upcoming changes to credit card levy payments, we’ve compiled answers to the most common questions below. These changes, which take effect from 1 October 2026, reflect new payment industry requirements and may impact how your community manages levy payment options in the future. Our aim is to provide clear, transparent information so committees can make informed decisions that support the best interests of their community.
Why am I receiving this information?
We are providing advance notice of an important change that may affect how levy notices can be paid from 1 October 2026.
Recent changes by the banking and payment industry mean that credit card processing fees can no longer be charged directly to the individual owner making the payment. Instead, if credit card payments continue to be offered, the associated processing costs must be paid by the Owners Corporation or Body Corporate.
Because this decision impacts the finances of every community, we believe the choice should be made by each community, not by Capitol.
What is changing?
Historically, owners who paid levies by credit card paid the associated surcharge themselves at point of sale or payment – the same way the surcharge was being passed on to payers for retail and commercial sales.
From 1 October 2026, if a scheme elects to continue accepting credit card payments, the processing fees will instead be charged to the Owners Corporation or Body Corporate and paid from scheme funds.
This means all owners may contribute to those costs, regardless of whether they personally use a credit card to pay their levies.
Why can’t the surcharge just be charged to the person using the credit card?
The payment industry has changed the way these charges can be applied at the direction of the RBA. This is a national legislation change that affects all of Australia’s payment providers.
As a result, the cost can no longer be recovered from the individual payer through the levy payment process and must instead be borne by the scheme/merchant if credit card payments remain available.
Why has Capitol decided to remove credit card payments by default?
Fairness and transparency are important to us.
If we were to automatically continue accepting credit cards across all schemes, every Owners Corporation or Body Corporate would incur costs that may ultimately be funded by all owners, regardless of whether they use this payment method themselves.
Rather than making this decision on behalf of every community, Capitol has opted all schemes out by default and will ask each committee to decide what is right for their building.
This ensures:
- Transparency around the costs involved
- Fair consideration of all owners
- Local decision-making by committee representatives
- Consistent governance across all communities
Does this mean my building can no longer accept credit card payments?
Not necessarily.
Each committee will have the opportunity to decide whether their scheme wishes to continue accepting credit card payments.
If the committee votes to continue accepting credit cards, the payment option will remain available.
If the committee votes to continue not accepting credit cards, the option will be removed from levy notices for any levies due from 1st October 2026.
Who makes the decision?
The committee of the Owners Corporation or Body Corporate will make the initial decision through a Vote Outside Committee Meeting (VOCM).
Capitol is facilitating the decision-making process but is not deciding on behalf of individual schemes.
The decision will then be passed to lot owners with a motion that can be added to annual general meetings to ensure that it is a decision that is always kept relevant and considered for the owners in each building.
How will the decision be made?
A Vote Outside Committee Meeting (VOCM) will be conducted electronically through StrataVote.
Committee members will receive voting instructions and supporting information.
The vote can be completed online and should only take a few minutes.
When will committee members receive the voting notice?
Committee members will begin receiving voting notices from Monday 10 August 2026.
What will committee members be asked to vote on?
Committee members will be asked whether their scheme wishes to:
Option 1: Accept Credit Card Payments
Credit card payments remain available to owners.
Any processing fees incurred as a result of those payments will be paid by the Owners Corporation or Body Corporate.
Option 2: Continue with the Credit Card Payments not being accepted
Credit card payments are no longer available from 1st October 2026.
Owners will continue to have access to alternative payment methods.
No credit card processing fees will be charged to the scheme.
What costs are involved if a scheme continues accepting credit cards?
The exact cost will depend on transaction volumes, payment provider charges and owner payment behaviour.
These costs are not charged to individual card users. Instead, they become an expense of the Owners Corporation or Body Corporate and are funded through the scheme’s budget in the same way as other operating expenses.
By way of example, a processing fee of 1.65% would result in the following costs:
These examples are provided for illustration purposes only.
These costs are incurred for every payment made on a Visa or Mastercard debit card of a Visa or Mastercard Credit Card. American Express will no longer be accepted regardless of opt in choice.
Who ultimately pays these costs if cards continue to be accepted as a payment method?
The lot owners as part of the Owners Corporation or Body Corporate.
As the costs become an expense of the scheme, they will ultimately be funded through the scheme’s finances in the same way as other operating expenses and be split across all owners appropriately. As a result, all owners may contribute to the cost of providing this payment option, regardless of whether they personally use a credit card.
There is no way to make individuals liable under the new legislation. These costs would then need to be budgeted for every year on the assumption that a percentage of owners may pay this way if available.
I pay by credit card to earn reward points. What happens if the scheme removes this option?
If the committee decides not to continue accepting credit card payments, the credit card payment option will be removed from future levy notices.
Owners wishing to continue making levy payments will need to use one of the alternative payment methods provided.
What payment methods will remain available?
Alternative payment options will continue to be available.
These may include:
- BPAY
- Direct debit
- Bank transfer
- Other payment methods offered through your existing levy payment arrangements
Details will continue to appear on levy notices where applicable.
Cards are continued to be accepted for levies due up until the 30th September 2026 and will be shown on levy statements already issued. Levies due from 1st October 2026 will only show this option if the committee has voted in favour of retaining card payments by a majority vote.
I do not use a credit card to pay levies. Does this affect me?
Potentially.
If your committee votes to continue accepting credit card payments, the associated processing fees may become an expense of the scheme.
If the committee votes not to continue accepting credit cards, there will generally be no impact on your payment arrangements.
What happens if the committee votes to continue accepting credit cards?
Credit card payments will remain available after 1 October 2026.
The Owners Corporation or Body Corporate will be responsible for the associated processing costs.
The credit card payment option will continue to appear on levy notices
What happens if the committee votes not to continue accepting credit cards?
Credit card payments will cease from 1 October 2026.
Owners will continue to have access to alternative payment methods.
Future levy notices will no longer include a credit card payment option.
What happens if the committee does not respond?
To ensure schemes are not automatically exposed to additional costs, credit card payments will be removed from 1 October 2026 unless a decision is made to continue accepting them.
Can a scheme change its decision in the future?
Yes.
If a committee later wishes to review its decision, it can discuss the matter with its Strata Manager and motions will be added to annual general meetings to address the choice for owners.
Any future changes would be subject to the payment arrangements and processes available at that time through payment providers however information will always be shared about any changes or updates to these banking services.
Why is Capitol handling this in this way?
We believe this approach reflects good governance and industry best practice.
Our role is to:
- Provide clear information
- Explain the financial implications
- Support informed decision-making
- Enable each community to determine what is right for its owners
Every building is different, and there is no single approach that will suit every community. Some owners value the convenience and rewards associated with credit card payments, while others may prefer to avoid the associated costs being paid by the scheme.
We believe decisions that affect community funds should be made by the community itself. A committee vote is the simplest way to ensure that the decision is made by the community on this matter that impacts financial planning of the scheme with owners being able to have a say at the next annual general meeting through the motion that will be included.
I am not on the committee. Can I vote?
No.
The VOCM will be issued to committee members only.
Lot owners who are not committee members may wish to discuss their preferences with their committee representatives before a decision is made.
I am a committee member and have questions before voting. What should I do?
Please contact your Strata Manager or visit the RBA Announcement & FAQ’s page.
Your strata manager can assist with:
- Understanding the options available
- Explaining the financial implications
- Providing guidance on the voting process
- Answering questions about payment arrangements for your scheme
Can we wait and include this vote at our next VOCM?
No.
Unfortunately, with the timing of the changes and to ensure that all levies are issued in line with payment terms required by legislation, along with the need for clarity on the matter when searching records, this matter needs to be addressed quickly and independently through this VOCM process.
Ongoing, the decision can be revisited through including a motion at an annual general meeting.
Is it legal for the Owners Corporation / Body Corporate to pay these card processing costs?
Yes.
Under the new payment arrangements, card processing costs can no longer be charged directly to the owner making the payment. If a scheme chooses to continue accepting card payments, the associated processing costs are paid by the Owners Corporation or Body Corporate as part of the cost of providing that payment option. As the bank account is owned by the scheme and the levies are collected through these payment channels to credit to that bank account, the owners corporation or body corporate is the merchant in all cases.
Is Capitol making a profit from these costs?
No.
Capitol does not receive the card processing fees. These charges are imposed by the payment provider and financial institutions that facilitate credit card transactions. The change relates to who pays the cost, not the amount being charged.
Why can’t the cost simply continue to be charged to the owner using the credit card?
Changes to the payment industry mean that card processing costs can no longer be passed on separately to the individual payer through the levy payment platform.
As a result, if a scheme wishes to continue offering card payments, those costs must be absorbed by the merchant. In a strata community, the merchant is the Owners Corporation or Body Corporate.
Is Capitol recommending that committees vote one way or the other?
No.
Our role is to provide transparent information about the changes and the financial implications so that committees can make an informed decision on behalf of their community. The choice remains with each Owners Corporation or Body Corporate.
Key Dates
Our Commitment
At Capitol, we are committed to being transparent, fair and proactive in supporting our clients. This process ensures that each community can make an informed decision about whether the convenience of credit card payments outweighs the cost to the scheme, while maintaining fairness for all owners.