What do Strata Levies Cover?


Strata levies for a strata title building differs and there are a range of reasons why they differ. Each building is unique in its own right and the costs associated with running the building.


When determining the levies for your building, consideration has to be taken into account for both the administrative fund and the capital works fund. The administrative fund covers the costs associated with the day to day running of the building which includes amongst other costs, building insurance, common property repairs, lawn and garden maintenance, cleaning, common electricity and water, preventative maintenance to items such as garage door(s), heating, mechanical and other professional services such as strata management, audits, tax returns.


The capital works fund is for large capital expenses not budgeted for or future capital expenses, which may include, external building painting, common area carpet replacement, common driveway replacement, roof replacement etc.


Buildings have services such as lifts, garage doors, mechanical ventilation, fire service requirements, building managers, swimming pools etc. may add to the running cost of your building and therefore to your levies.


Another factor is how much your building is paying towards its capital works fund. While this is dictated by a 10-year capital works fund forecast, which outlines how much your building should be putting away each year for future capital expenses, the decision on how much money is contributed to the capital works fund is decided at your AGM.


Our office is here to guide and support your building when determining the levy contributions for your building.


Not sufficiently adopting a budget that meets the needs of the building can have an adverse effect on the financial viability of the building but can also affect the value of your apartment if you do not maintain the common property or have sufficient funds set-aside in the capital works fund.


Q: Who set’s the levies?

The owners at the Annual General Meeting determine the budget for the forthcoming year.

Advice and recommendations will be provided by the strata manager, however at the end of the day the levies determined are set by the owners present at the Annual General Meeting.


Q: What role does Foreshew Strata Agency have in setting the levies?

Our office will provide a budget proposal, that is usually endorsed by the Strata Committee prior to being tabled for consideration at the AGM.

As Strata Managers, we cannot vote on the budget, but we will provide expert advice and recommendation to ensure that all owners can make an informed decision in determining the budget.


Once the owners have agreed and resolved the budget about, Foreshew Strata Agency will issue levy notices based on this decision.


Q: Our levies are higher than our friends who live in a strata building. Why?

As mentioned in our article, there are a number of determining factors as to why the levies for your building may be higher. It may not be that the levies are high it may be that your friends strata buildings levies are low.


There may be a number of factors for this which may include, that they do not have the building served as regularly as yours for cleaning, garden/lawns, your building may have a lift, common garage door, swimming pool or other services they do not which add to the costs or they may not be contributing to their capital works fund to the degree that your building is.


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Released at the backend of 2021, the Community Land Management Act 2021 has commenced, overriding the previous Community Land Management Act 1989. With no major amendments to the Act for the last 30 p