If you own a lot in — or sit on the Committee of — a Queensland strata or Body Corporate scheme, you’ve probably had at least one moment of genuine confusion about where your levies actually go. You’re not alone: Body Corporate finances involve statutory funds, AGM votes, spending thresholds and reporting obligations that most owners are never properly walked through.
This guide covers how contributions are set, how your Body Corporate’s two funds work, what your financial statements actually mean, and what the law requires around insurance, audits, spending and tax. It’s written specifically for Queensland’s Body Corporate and Community Management Act — not a generic national explainer — so everything below reflects what actually applies to your scheme.
Already an SSKB Client? Understanding Body Corporate Financial Management in Queensland is already available to you via the mySSKB Portal and the SSKB App. Simply head to the Document section and look under the Education tab.
Disclaimer: The material in this book is intended as a general guide and not as definitive legal advice. For specific concerns, we recommend speaking with your Community Manager. They can either provide the answers you need or help you find the right professional with the expertise required to make a positive difference for your Body Corporate. Please note that legislative requirements may have changed since this information was published.
Body Corporate contributions — commonly called levies — are the regular payments each lot owner makes to fund the scheme’s day-to-day running and long-term upkeep. They’re split across two separate funds: the Administration Fund, covering routine costs like insurance, cleaning and management fees, and the Sinking Fund, reserved for major repairs and capital works. Queensland law requires a Sinking Fund Forecast covering a minimum of 10 years, so the scheme isn’t caught short when big-ticket items fall due. Our guide walks through exactly how your contribution rate is calculated from your Lot Entitlement, and what to check on your own AGM budget before you vote.
When your levy falls due, you’ll receive a Contributions Notice — sometimes called a levy notice — stating the amount payable, the due date, and your available payment options. It’s issued after the AGM sets the year’s contribution rates, turning an approved budget into an actual bill for your lot. Payment methods, processing fees and any prompt-payment discount all sit on the notice itself, since these can change over time. Our guide explains how the amount on your notice was actually calculated, and what your options are if a due date doesn’t work for you.
When your levy falls due, you’ll receive a Contributions Notice — sometimes called a levy notice — stating the amount payable, the due date, and your available payment options. It’s issued after the AGM sets the year’s contribution rates, turning an approved budget into an actual bill for your lot. Payment methods, processing fees and any prompt-payment discount all sit on the notice itself, since these can change over time. Our guide explains how the amount on your notice was actually calculated, and what your options are if a due date doesn’t work for you.
When contributions go unpaid, the Body Corporate will typically follow a staged recovery process — starting with a letter of demand and escalating to legal action if needed, with recovery costs added to what the owner owes. What surprises a lot of buyers: unpaid contributions attach to the lot itself, not the individual owner, so a debt can transfer to a new owner if it isn’t cleared before settlement. If you’re buying or selling, this is one of the first things worth checking. Our guide explains the full recovery process and what to look for before you exchange.
The Annual General Meeting is where a Body Corporate’s financial year is decided — Owners review the past year’s financials, consider the proposed budget, and vote on contribution rates for the year ahead. Every AGM must include a set of standard financial motions: adopting the financial statements, deciding on an auditor, approving the Administration and Sinking Fund budgets, and fixing contributions. If the vote doesn’t pass, the Body Corporate has to call an Extraordinary General Meeting to try again — the Committee can’t simply set levies on its own. Our guide walks through how the budget is actually built and what to look for before you vote.
Every Body Corporate’s financial statements are built around two components: a balance sheet showing the overall financial position (cash, outstanding contributions, and what’s owed), and income and expenditure statements for each of the two funds. As an owner, you’re entitled to inspect or obtain copies of these records at any time, not just at the AGM. The key questions worth asking when you read them: is the Administration Fund covering the year’s actual costs, is the Sinking Fund on track with its forecast, and are there any large unpaid or accrued amounts? Our guide breaks down exactly what each line means.
Not automatically — at each AGM, the Body Corporate must vote on whether to have its books and records audited for the coming year, and the decision is made annually by all Owners. Where an audit is conducted, Queensland law requires it to be carried out by a registered company auditor, independent of the Body Corporate and its management. Audits aren’t mandatory every year, but they’re strongly recommended for larger schemes, those with complex financial arrangements, or where Owners have raised concerns. Our guide explains what an auditor actually reviews, and how to decide whether your scheme should be audited this year.
Insurance is one of the largest line items in most Body Corporate budgets — and one of the least understood. Queensland law requires schemes to hold a minimum of $10 million in public liability cover for common property, plus full replacement insurance for the building itself, independently revalued at least once every five years. Our guide breaks down exactly what your policy must cover, how excesses are split between owners and the Body Corporate, and the questions your Committee should be asking before the next renewal.
Yes — Bodies Corporate are required to lodge a tax return each financial year for any assessable income they earn, taxed at the same rate and threshold as public companies. Importantly, levy income itself isn’t assessable — due to the principle of mutuality, money collected from Owners and spent for the benefit of those same Owners isn’t taxable. What can be assessable is non-mutual income, like interest earned on investment accounts or rent from common property. Whether your scheme needs to register for GST depends on that non-mutual income. Our guide explains what counts, and who to talk to about your scheme’s specific obligations.
Insurance is one of the largest line items in most Body Corporate budgets — and one of the least understood. Queensland law requires schemes to hold a minimum of $10 million in public liability cover for common property, plus full replacement insurance for the building itself, independently revalued at least once every five years. Our guide breaks down exactly what your policy must cover, how excesses are split between owners and the Body Corporate, and the questions your Committee should be asking before the next renewal.
Levy amounts are set at the AGM based on the Body Corporate’s approved budget. Increases typically reflect rising costs — insurance premiums, maintenance contracts, utility charges — or a decision by Owners to increase Sinking Fund contributions ahead of planned capital works.
Contact your Body Corporate Manager as soon as possible. If your scheme has an approved hardship or discount waiver process, you can submit a written request to the Committee explaining your circumstances.
A special levy is an additional contribution raised to cover an unexpected or unbudgeted expense — such as emergency repairs or an insurance excess — that existing funds can’t cover. It requires approval at a General Meeting.
The building insurance covers the structure and common property assets — not the contents of individual lots. Lot Owners are responsible for their own contents insurance and public liability cover within their lot. Queensland Bodies Corporate must also hold a minimum of $10 million public liability cover for common property.
No. Fixing or changing contributions is a Restricted Issue — it can only be decided by all Owners at a General Meeting. The Committee cannot alter levy amounts outside this process
The Administration Fund covers day-to-day running costs — insurance, routine maintenance, utilities and management fees. The Sinking Fund is for longer-term capital expenditure — major repairs, equipment replacement and significant maintenance works. The two funds are kept strictly separate
Yes. Financial statements are presented at the AGM and form part of the Body Corporate’s official records. As a Lot Owner, you have the right to inspect or obtain copies at any time.
Yes. Unpaid Body Corporate contributions attach to the lot, not just the Owner. When a lot changes hands, any outstanding levies or debts must be cleared — purchasers should always confirm the financial status of a lot before settlement.
Disclaimer: The material in this book is intended as a general guide and not as definitive legal advice. For specific concerns, we recommend speaking with your Community Manager. They can either provide the answers you need or help you find the right professional with the expertise required to make a positive difference for your Body Corporate. Please note that legislative requirements may have changed since this information was published.
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