Strata levies are financial contributions made by all owners in a strata scheme to fund the maintenance, insurance, operation, and long-term upkeep of the building’s common property. These contributions are set and managed in accordance with the Strata Schemes Management Act 2015 (NSW).
Types of Strata Levies
Administrative Fund
Required under Section 73(1) of the Strata Schemes Management Act 2015, this fund covers regular expenses such as building insurance, cleaning, utilities, day-to-day repairs, and general maintenance of common property.
Capital Works Fund
Mandated under Section 74 of the Act, this fund provides for major repairs and replacements anticipated over a 10-year period. It includes items like roof repairs, painting, lift refurbishment, and other long-term capital works.
Special Levies
Authorised under Section 76, special levies can be raised at a general meeting if additional funds are needed to cover unexpected or extraordinary expenses.
How Are Levies Determined?
Levies are determined at the Annual General Meeting (AGM), as per Section 79 of the Act. The proposed budget is prepared by the strata manager in consultation with the committee and reflects prior year expenses, upcoming known costs, and capital planning. Owners vote to approve the budget and the corresponding levy amounts.
Your share of the levies is based on your lot’s unit entitlement, as recorded in the registered strata plan, in line with Section 83.
Where Are Levies Kept?
All levy payments are held in trust accounts in the name of the Owners Corporation, not the strata manager. These trust accounts are regulated under Section 95 of the Strata Schemes Management Act 2015 and ensure complete transparency and separation from the managing agent’s funds.
Each scheme must maintain separate accounts for:
- The Administrative Fund
- The Capital Works Fund
- Any specific levies (e.g. special purpose accounts)
Strata managers are licensed to manage these trust accounts under the Property and Stock Agents Act 2002 (NSW) and are required to keep complete and accurate records of all transactions.
When and How Are Levies Paid?
Levies are typically issued quarterly in advance, with notices sent out approximately five weeks before the due date. The due date usually falls on the first day of each quarter.
Payment methods include:
- BPAY
- Direct debit
- Credit card (fees may apply)
- Via DEFT
View Your Levy Records Online
Through the Strata + My Property portal, you can securely access:
- Past and current levy notices
- Payment history and current balance
- Upcoming due dates
- Downloadable statements for tax or record-keeping
Log in here: My Property
What Happens If Levies Are Late?
Under Section 85(1) of the Strata Schemes Management Act, if a levy is not paid within one month of the due date, interest automatically accrues at 10% per annum. This rate is prescribed by legislation and cannot be waived by the strata manager or committee.
Where Does the Interest Go?
Interest on overdue levies is paid into the Owners Corporation’s trust account, not to the strata manager. These funds benefit all owners equally and form part of the building’s overall financial resources.
Owners may pass a resolution at a general meeting to waive interest on a case-by-case basis (e.g. for financial hardship), but this must be formally resolved.
Arrears and Debt Recovery
If levies remain unpaid:
- A reminder is sent after 30 days
- A follow-up reminder is sent around 45 days
- A final notice is sent at 90 days, with referral to debt collection if no payment is made
The Owners Corporation may recover unpaid levies, interest, and reasonable legal costs as a debt under Section 86 of the Act. These costs are recoverable from the individual lot owner and appear on their financial statement.
In New Developments
Developers are responsible for setting the initial budget and levies before registration. Once the scheme is handed over, the Owners Corporation assumes full responsibility for budgeting, levies, and financial planning, which is generally delegated to the strata committee with guidance from the strata manager.
Key Reminders
- Levies are a legal obligation under NSW strata law.
- All payments are held in a trust account for the Owners Corporation’s exclusive benefit.
- Overdue levies attract 10% interest under Section 85. It can’t be waived without a resolution and is paid into the Owners Corporation’s trust account.
- Debt recovery is enforceable under legislation.
- Strata Plus’s My Property provides owners with full transparency over levy history and balances.
Need help understanding your levy notice or account? Contact your strata manager