What are levies and what do they actually pay for?

If you own in strata, you pay levies. But do you know exactly where that money goes?

Understanding your levies is one of the most empowering things you can do as a strata owner. It gives you the knowledge to participate meaningfully in decisions about your building’s future – and to make sure your money is being well spent.

Your levies are split across two funds.

The administrative fund covers the day-to-day costs of running your building – think of it as the building’s operating budget. It pays for:

• Building insurance
• Cleaning and garden maintenance
• Utilities in common areas
• Strata manager fees
• Routine repairs and minor maintenance

The capital works fund is your building’s long-term savings account. It’s there to fund the big things you can see coming – a new roof, new lifts, repainting the exterior, replacing the waterproofing. These costs can be significant, but if you plan ahead, every owner contributes a manageable amount over many years rather than facing a large bill all at once.

Here’s where it gets important. If the capital works fund isn’t kept healthy and a major repair comes up, the Owners Corporation has to raise a special levy – a sudden, unplanned bill that can catch owners completely off guard. Nobody wants that.

A building with healthy funds is a building with a future. Maintenance happens proactively, not reactively. Your asset holds its value. And the community you live in stays safe, functional and a genuinely great place to call home.

Your levy amount is set each year at the Annual General Meeting, based on the building’s budget. Going to your AGM and understanding what your levies fund is the best way to have a real say in how that money is spent.

Visit our website to learn more about how levies are calculated and what your rights are.