For many owners, strata levies can feel like just another bill to pay. But understanding how these funds are used helps reveal the real value they provide. Levies aren’t just expenses — they are what keep the building operating smoothly, the common areas maintained, and property values protected. 

Levies are usually divided into several key categories, each with its own purpose. 

The Administrative (Operating) Fund 

This is the day-to-day account of the community. It covers recurring expenses such as building insurance, cleaning, gardening, minor repairs, utilities for common areas, and management fees. Without this fund, the essentials that keep a building functional and comfortable simply wouldn’t get done. 

The Sinking Fund 

This fund is about long-term planning. It builds up savings to pay for major works and replacements, like roof repairs, repainting, lift upgrades, or structural maintenance. By contributing regularly, owners avoid the financial stress of sudden large bills when these inevitable projects arise. A well-funded capital account is also a sign of a well-managed scheme, reassuring current owners and potential buyers alike. 

Special Levies 

Sometimes unexpected costs crop up that neither the administrative nor capital works funds can cover. In these situations, a special levy may be raised. These one-off contributions must be approved by owners at a general meeting and are used only when other funds are insufficient. 

SSKB’s Role in Levy Collection and Management Fees 

SSKB collects levies on behalf of the strata scheme, but these funds do not belong to us — they are deposited into the scheme’s accounts and used exclusively for community expenses. Our role is to manage the collection process, maintain accurate records, and provide financial reporting so committees and owners have full transparency. 

As your strata manager, SSKB is paid separately through fees set out in each scheme’s management agreement. These fees vary depending on the inclusions but typically cover: 

• Secretarial Fees (per lot/per annum): Day-to-day administration, meeting support, and record keeping. 

• Disbursement Fees (per lot/per annum): Costs such as postage, printing, and document storage. 

This structure ensures that levies fund the community, while management fees fairly cover the services SSKB provides to support the committee and owners. 

Why Levies Matter 

Levies can sometimes feel like a burden, but they are really an investment in the community and in each owner’s property value. Well-managed levies ensure the building is maintained to a high standard, reduce the likelihood of disputes, and protect long-term financial stability. They also provide peace of mind that the scheme is prepared both for today’s needs and tomorrow’s big projects. 

Helpful Tips for Owners and Committees 

1. Learn the difference between funds 
Understanding what each fund is used for helps owners see why both are essential and prevents confusion about how money is spent. 

2. Support realistic budgets 
Approving budgets that reflect true costs avoids shortfalls later. Cutting corners on levies today often means higher expenses tomorrow. 

3. Ask for regular updates 
Committees and managers should provide clear financial reports. Knowing how levies are being spent builds trust and ensures accountability. 

FAQs About Strata Levies 

Here are some of the most common questions owners ask about levies: 

Why do levies increase each year? 
Costs like insurance, utilities, and maintenance rise over time. Adjusting levies ensures the community keeps pace with these increases and avoids falling behind. 

Can levies be reduced? 
Levies can only be reduced if expenses are genuinely lower — but this is rare. Cutting levies too far can leave the community underfunded and lead to bigger problems down the track. 

What happens if there isn’t enough in the funds? 
The scheme may need to raise a special levy to cover the shortfall. This can put sudden financial pressure on owners, which is why regular contributions are so important. 

Do levies add value to my property? 
Yes. Well-maintained buildings are more attractive to buyers and command higher prices. Strong levy management protects both the community and the individual owner’s investment.