What Are My Levies Paying For? - SSKB - Strata Managers | Community Experts

What Are My Levies Paying For?

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:

  • Cleaning
  • Electricity in common areas
  • Fire control
  • Insurance
  • Management fees (strata management and on site management)
  • Maintenance of the building

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:

Levies Graph

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.

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Recent Comments


naderhanna221@hotmail.com On September 11, 2015 | Reply

Can you please clarify why the strata or body corporate fees consist of 20% costs dedicated to on site management. Owners already pay them a fee via a percentage of the rent in my case its 8.8% a month plus advertising fee every month also so that makes it like 10%. So does that mean you are charging an additional 20% on top of that.

    SSKB On October 1, 2015 | Reply

    The amount, and percentage of total expenditure, for onsite management may vary greatly between bodies corporate. In the particular example provided it was 20%. The example provided may not be applicable to all bodies corporate, for example if there is no on site manager at a particular building the amount would be zero.

    In a large number of bodies corporate, the on site managers may, in addition to their caretaking agreement, also provide letting services. Those letting services are not a cost to the body corporate and are an arrangement between individual owners and the letting agent and as such the costs of them providing that service are between the owner and the letting agent.

    In the vast majority of instances, the on site management fees are solely related to the cleaning, repair and maintenance of the common property based on the duties defined in the caretaking agreement.

Mrs Janet Leighton On September 11, 2015 | Reply

Appreciative of the clarity of this information sharing. Well done.
Janet Leighton
Units Bayview Tower and Southbank , Brisbane

Len On September 11, 2015 | Reply

Body Corporate you say is simply wonderful ..? I look at the fees and costs associated and then see that the amount of refurbishments and corrections in a new complex is redicuous . Refurbs and redoes of assets not needed keep upding the B/Cfees ..
Sure it gets back to the few in charge but on a large set of utits B/C is way over the top . Pie Charts look good but only add to the confusion for a unit owner .

ERIC MAJOR On September 11, 2015 | Reply

What is the difference between Utilities & Administration Costs in your wheel of Expenses.
Unit Owner 47 Whale Cove Resort Urangan.

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