How are your levies calculated?
Have you ever reviewed your budgets or general meeting material and wondered how your levies are calculated? Or similarly, have you just paid your levy without really knowing what you’ve been paying for? Here is a quick guide to assist you in calculating the levies applicable to your lot.
To calculate the levies applicable to your lot, you will need to locate the following figures:
Example 1 Total per contribution entitlement – this is located in the Administrative Fund and Sinking Fund Motions in the Annual General Meeting Agenda (refer below example 1);
Example 2 Contribution entitlement applicable to your lot – this is located on the top right hand corner of your individual levy notice (refer below example 2).
To calculate the levies applicable to your lot for a 12 month period, simply multiply the total per contribution entitlement in example 1, by the number of contribution entitlements in example 2.
Using the above example the Administrative Fund Levy will be $42.55 x 10 = $425.50.
If you only want to calculate the next levy which is due (for example, 1 May 2015 above) simply multiply the dollar amount in that row by your contribution entitlements in example 2. Using this example, the total levy amount due 1 May 2015 is $7.35 x 10 = $73.50.
When looking at this example, please note this is only applicable for your Administrative and Sinking Fund levies. If your body corporate has an insurance levy or additional, one-off levies, please contact your Community Manager for more information, as this can have a significant impact on how much you will pay for your levies throughout the year.
New South Wales lot owners should also be aware that when NSW strata legislation is updated on he 30th of November, the sinking fund will be known as the capitol works fund.
If you have further questions about how your levies are calculated, talk to SSKB. Our team of experts can give you professional and detailed advice on the specifics of your scheme to ensure you get the best service and the best available outcome.