Confusion has been the longstanding norm when it comes to levies for lot owners. A study conducted by the University of NSW identified that a large proportion of NSW strata owners “did not consider their levies to be appropriate” and that there is a large amount of uncertainty amongst owners about what their levies are actually spent on.
Although there are many variables to consider and circumstances vary from building to building, some of the expenses incurred by strata properties are as follows:
Of these particulars, electricity and sinking fund expenses can generally account for the largest amount of expenditure. An example of the breakdown of expenses for a body corporate/owners corporation is as follows:
Although the specific expenses may vary between individual strata communities, there should be little confusion on the part of lot owners as to what their levies are being spent on. While strata managers take their instruction from the committee and are unable to determine levy contributions or approve expenditure, they should remain as transparent as possible and provide documentation on expenditure.
At SSKB, our Community Managers understand that for lot owners every detail matters when it comes to how their money is being spent. That is why we provide detailed spreadsheets and graphs showing the budgeted and actual expenditure for a given year. This information is freely available and also provided in the minutes to keep all lot owners up to date and prepared for the levies to come. If you would like more information, please contact your SSKB Community Manager.