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Writer's pictureAbode Strata

How are Strata Levies determined?

We get lots of queries on how strata levies are determined and why they have increased or have changed, we hope the following overview provides you with a greater understanding of levy payments for your scheme.

The levies are typically set by your strata council (not the Strata Managers) however sometimes your strata council may ask your strata manager to recommend a budget based upon last year’s expenses plus CPI or projected expenses. This budget is then proposed by your strata council at your AGM, and then adopted by owners, the levies are raised and collected based upon these projected expenses. (budget)


General Levy

Also known as Administrative levies, cover the ongoing fixed costs of your strata company being; insurance and maintenance of common property. Items included however are not limited to are:

  • Routine building maintenance

  • Gardening

  • Pool services

  • Gym services

  • Common area electricity/water

  • Lift maintenance

  • Administrative

  • Debt collection

  • Legal, consultant and strata manager’s fees etc.


If you believe that your levies are high it is best to get involved within your strata company, attend your General Meetings and nominate to be on the Council of Owners. It is normal to have an increase in annual levies as costs for services and trades are also increased annually in line with CPI.


Levies are usually higher in buildings that have more amenities and services or because the building may be old therefore requiring regular scheduled maintenance.


Reserve Levy

The Reserve levy that is more like a savings account, a contingency fund for accruing funds that are long term projects, or projects that are at the end of their serviceable period; such as painting, lifts etc. this levy accrues over time alleviating the need for a specific purpose levy.


Specific Purpose Levy

Also known as Special Levies are for just that a nominated specific purpose that arises from time to time, such as painting the entire building, re-roofing, new lift. They are typically larger expense items where there are insufficient funds in the Reserve Account or Admin Account to be transferred to a project and the money needs to be raised over a shorter, longer or specific timeframe.


We hope that this assists you with your enquiry, and again remember your council is a management team of various skills and experience, should you wish to get involved in your strata company attend your general meetings, nominate yourself as council member and be an active owner. If you have any queries, please do not hesitate to contact us.


Enjoy your community J

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