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Strata Management

Strata levies and strata fees – everything you need to know

By September 10, 2021November 25th, 2021No Comments

When you buy a Strata titled property you are buying your own apartment, but you are also buying a piece of the entire complex itself, including a portion of the common property. The common property includes things that are common to all, for example walls, external roof, foyers, pools, car parks and gardens. Those areas are shared between all the owners of the strata company and are managed by the body corporate.

A certain amount of money is required to look after the day to day running of the strata property, maintenance and special expenses and your strata levies and strata fees are the amount collected by each owner to contribute to that pool.

What are strata levies or strata fees?

These levies are a quarterly paid contribution to the Strata company’s funds, which look after things like insurance, maintenance and repairs, cleaning and so forth. Every owner in your strata property is responsible for contributing to these funds and therefore levies are raised to collect the money off each owner.

Where do levies go?

To keep your strata scheme running smoothly and in good condition, the levies collected are used for things like:

  • Maintenance and upkeep of the building
  • Maintenance and upkeep of any common areas and amenities
  • Building insurance
  • Strata management fees
  • An onsite facilities manager
  • Utilities to any common areas (for example, electricity to run elevators or lighting common areas)
  • Periodic or unexpected repairs

There are also special levies that are raised outside of the general administrative fund levies that go to the day-to-day running of the strata complex. These could be Sinking Levies, for larger maintenance and renovations, or Special levies which are paid in addition to cover extraordinary expenditures.

Are all levies the same for all properties?

Every building has a unique set of attributes that require different amounts of maintenance. For example, if you own a Survey Strata property, there is less common property to maintain as a strata company, and therefore the amount of funds required to running them will be lower. Buildings with pools, lifts, building managers etc, will require more funds for the management but they will be spread out over all the owners of the complex.

What is my portion of the strata levies?

Every strata property comprises of many different lots. In order to determine each owners undivided share in the common property, voting rights, along with their share of outgoings, a unit entitlement is assigned to each unit. A unit entitlement represents each units value as a percentage of the value of the whole development and your individual unit entitlement will govern how much you contribute financially to the running costs of your strata complex.

How are strata levies decided – and what to do if yours have increased?

Strata levies are decided by a simple majority vote at an Annual General Meeting based on the budget for the upcoming year. If you have received a quarterly levy notice which is higher than you were expecting, we would encourage you to refer to your minutes and its attached budget to learn more about the spending decisions made by your strata company.

Article: Levies and levy increases 

How do you pay for levies?

At ESM Strata, all levies are paid via the DEFT payment service and funds are held in individual accounts in the name of the Strata Company. This account is managed by ESM Strata on behalf of the Council of the Strata Company and the Strata Company.  The levies raised fund the approved expenditure of your Strata Company.