In the world of strata living, there’s one word that strikes both necessity and confusion—levies. These financial contributions can often feel like a mystery, yet they are the backbone of a well-maintained strata scheme. Whether you’re a lot owner or committee member, understanding levies is crucial to ensure the smooth running of your building. With different rules and regulations across New South Wales, Queensland, and Victoria, navigating the system can be overwhelming. But don’t worry—SSKB has you covered with a simple, streamlined way to stay on top of your levies.
What Are Strata Levies?
Strata levies are regular financial contributions paid by lot owners to cover the costs of maintaining and managing the common property within a strata scheme. These funds go towards essential services such as insurance, maintenance of common areas, repairs, and administrative costs. However, the structure and enforcement of these levies can differ depending on where you live.
There is a common misconception that levies go directly to the strata manager, but in reality, the levies are paid to the strata scheme itself. In a standard scheme with a caretaker, the Body Corporate Management (BCM) fees typically make up only around 6% of the total cost of running the scheme. The BCM assists by managing the scheme’s financials, including paying approved bills and ensuring that the scheme’s operations run smoothly.
New South Wales (NSW): Special Levies on the Rise
In NSW, levies are a critical component of maintaining the Owners Corporation’s financial health. Owners Corporation members determine the levies based on the estimated annual expenditure for the scheme, which includes everything from building maintenance to insurance. Special levies may also be imposed when urgent or unforeseen expenses arise that exceed the available funds.
One important factor in NSW is that special levies cannot be imposed without the approval of the Owners Corporation at a general meeting. This ensures transparency, but it also highlights the need for lot owners to stay informed about financial decisions impacting their strata scheme.
Queensland (QLD): Refusing Levy Increases Could Have Consequences
In Queensland, strata levies are referred to as “Body Corporate levies.” These levies are set based on the budget agreed upon by the Body Corporate at the annual general meeting. The funds collected through levies are used to cover administrative costs, insurance, and the upkeep of common property such as lobbies, pools, and gardens.
Victoria (VIC): Transparency is Key to Levy Allocation
In Victoria, levies are governed by the Owners Corporation, which is responsible for managing and maintaining the common property. One unique aspect of levies in Victoria is that they can be issued based on the lot allocation or the lot liability method, where each lot owner’s contribution is proportional to their ownership stake in the scheme.
Victoria has recently seen an increase in Owners Corporation levies, particularly as building repairs and upkeep become more complex. It’s crucial for lot owners and committee members to be actively involved in decisions regarding the budget and any necessary increases, ensuring that all financial obligations are transparent and understood.
Take Control of Your Levies with the SSKB App
Managing your levies doesn’t have to be a headache. Whether you live in NSW, QLD, or VIC, SSKB lot owners and committee members have exclusive, free access to the SSKB app. This innovative tool provides a dedicated section for managing your levies with ease. You can track payments, view upcoming levy schedules, and stay informed about any special levies or increases that may affect your strata scheme—all from the palm of your hand.
SSKB’s app ensures that lot owners are never in the dark when it comes to managing their levies, offering transparency and ease of access in one simple platform.
Why Staying on Top of Levies is Vital
Failing to pay levies on time or misunderstanding how they are calculated can have serious consequences, including legal action or a deterioration of your building’s facilities. It’s vital for lot owners to stay proactive and informed, ensuring their levies are being used efficiently and effectively to maintain the property.
Lot owners may encounter disputes regarding levy increases, with some even refusing to pay. However, it’s essential to know that refusing to pay a valid levy can lead to penalties or legal action by the Body Corporate or Owners Corporation. With proper management, disputes can often be avoided, making it essential for lot owners to stay updated on the financial health of their building.
By using the SSKB app and understanding the specific regulations in your state, you can take control of your financial obligations and help maintain the health of your strata scheme. Don’t let levies be a source of confusion or stress—stay informed, stay proactive, and manage your levies with ease.
