Common Misconceptions of Strata Living – Part 1

Body Corporate

Welcome to part one of a ten part series discussing the most commonly misunderstood issues relating to strata living.

  1. The allocation of fees collected by the body corporate/owners corporation:

Confusion has been the longstanding norm when it comes to levies for lot owners. The UNSW study, Governing the Compact city, identified that a large proportion of the State “did not consider their levies to be appropriate,” and that there is a great amount of confusion amongst owners about what levies are actually spent on.

Although there are many variables to consider, this blog will give you a general indication of how levy contributions are spent along with an example of a building’s expenditure throughout the period of a year.

A body corporate/owners corporation has many particulars that are allocated for over a year. These can include:

Management fees, cleaning, electricity, fire control, insurance, R&M building, R&M electrical, R&M gardens and grounds, R&M lifts, R&M plant and equipment, R&M plumbing, R&M pool, resident/building manager, security, tax/bas filing fees, pool heating and sinking fund expenses.

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:

How are levies spent?


Even though there are countless variables to be considered for individual situations, there should be little confusion as to what levies are being spent on, given you have a good strata management company that remains as transparent as possible.

At SSKB, our Community Managers 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.

Please comment on this post if you have any questions.


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