Strata levies explained: how they are set, what they pay for and what happens if you fall behind
- NSW has an administrative fund and a capital works fund (formerly the sinking fund). Queensland has an administrative and sinking fund; WA an administrative and reserve fund; Victoria a maintenance fund for schemes with a maintenance plan.
- In NSW, levies are set at the AGM and divided by unit entitlement.
- You get at least 30 days to pay, or 14 days for emergency repair levies.
- Interest of 10% simple a year applies if a NSW levy is not paid within one month of the due date, unless waived.
- NSW schemes must keep a 10-year capital works fund plan, reviewed at least every five years.
What do strata levies pay for?
Levies cover the cost of running the scheme: maintenance and repairs of common property, insurance, management fees, and utilities for common areas such as lift power and lighting (NSW Government – Strata levies, finances and insurance). They are usually paid quarterly.
Administrative fund vs capital works fund (NSW)
| Fund | Purpose | Examples |
|---|---|---|
| Administrative fund | Everyday running costs | Insurance, cleaning, gardening, common area power and water, pest control, minor repairs, management fees |
| Capital works fund | Major and long-term expenses | Repainting, replacing or repairing common property, replacing fixtures and fittings, sustainability upgrades, project management |
| Other funds | Optional services some owners choose | Pay TV or high-speed internet, set up by resolution at a general meeting |
The owners corporation can transfer money between funds, but must hold a general meeting within three months to decide whether to reimburse it. Capital works levies are not refunded when you sell (NSW Government – Managing strata finances).
What are the funds called in each state?
| State | Everyday fund | Long-term fund | Planning rule |
|---|---|---|---|
| NSW | Administrative fund | Capital works fund | 10-year plan, reviewed at least every 5 years |
| QLD | Administrative fund | Sinking fund | Sinking fund budget reserves for at least 9 years after the current year; no transfers between funds |
| VIC | Annual fees | Maintenance fund (if there is a maintenance plan) | Tier 1 and 2 owners corporations must have a maintenance plan |
| WA | Administrative fund | Reserve fund | 10-year plan for schemes of 10+ lots or $5 million+ replacement value |
| SA | Administrative fund | Sinking fund (not required for strata corporations) | Some strata corporations must present forward budgets at the AGM |
Sources: Queensland Government, Consumer Affairs Victoria, Landgate, Law Handbook SA.
How are levies set?
In NSW, the strata committee prepares a budget, taking into account the 10-year capital works fund plan, and the owners corporation approves it at the AGM. At that same meeting it sets the contributions to each fund (s 81 of the Strata Schemes Management Act 2015 (NSW)). Each owner's share is based on unit entitlement, shown on the strata plan. For example, if total unit entitlement is 100 and your lot has 15, you pay 15% of the levies (NSW Government).
In Victoria fees are charged by lot liability; in Queensland, different costs are shared by the contribution or interest schedule lot entitlements.
What is the NSW 10-year capital works fund plan?
Section 80 requires a plan of anticipated major expenditure from the capital works fund for 10 years from the first AGM. The first plan must consider the developer's initial maintenance schedule. It must be reviewed at least every five years, and the owners corporation must implement it as far as practicable. From 1 April 2026, new and revised plans must use the standard form, and Strata Hub has a free planner tool (NSW Government – Guide to strata law changes).
What is a special levy?
If the owners corporation faces expenses it cannot meet from either fund, it must raise an extra contribution, decided at a general meeting (s 81(4)). Special levies are also shared by unit entitlement. NSW Fair Trading encourages instalments, early warning and, where suitable, strata finance loans to soften the impact (NSW Government – Levies).
In Victoria, special fees that are more than double the current annual fees need a special resolution (Consumer Affairs Victoria – Fees).
How much notice do I get?
- Standard and special levies (NSW): at least 30 days to pay.
- Emergency repairs (NSW): at least 14 days, where the work is needed to address a serious and imminent threat to health or safety.
- Victoria: fees are due within 28 days of the fee notice.
You must still pay if you did not receive a notice, so keep your contact details on the strata roll up to date.
What happens if I do not pay?
- Interest. In NSW, an unpaid levy bears 10% simple interest a year, but not if paid within one month of the due date. The owners corporation can resolve to waive interest (s 85). WA strata companies can charge 11%; Victorian owners corporations follow the Penalty Interest Rates Act 1983 (Vic).
- Voting. In NSW an owner behind on levies cannot vote at a meeting except on a motion needing a unanimous resolution, and cannot be elected to the committee.
- Payment plan. Owners can ask for a payment plan using the standard form; plans last up to 12 months and can be renewed. An owners corporation cannot resolve to refuse all payment plans, and cannot charge a fee for one.
- Recovery. The owners corporation must give at least 30 days' written notice before starting legal action, and cannot take action while a payment plan is being followed (NSW Government).
How Watchdog Strata helps
Watchdog Strata does not collect levies or run trust accounts; those stay with your strata manager. It helps owners see what the money is for: the quote comparison and owners' poll shows options side by side before a decision, and maintenance tickets show what work was done. Formal levy decisions are still made at general meetings under your state's Act.
General information only, not legal advice. Check the current legislation or ask a strata lawyer for your scheme.
Questions people ask
What is the difference between the administrative fund and the capital works fund?
In NSW the administrative fund pays everyday costs like insurance, cleaning and utilities. The capital works fund pays for major work such as repainting, replacing common property and large repairs.
Is the capital works fund the same as a sinking fund?
Yes, broadly. NSW renamed the sinking fund the capital works fund. Queensland still calls it a sinking fund, WA calls it a reserve fund and Victoria has a maintenance fund.
How much interest is charged on late strata levies in NSW?
10% simple interest a year, unless the levy is paid within one month of the due date or the owners corporation waives interest.
Can I refuse to pay a special levy?
No. A special levy validly raised at a general meeting is a debt you owe. If you cannot pay, ask the owners corporation for a payment plan.
How are levies split between owners?
In NSW, by unit entitlement shown on the strata plan. A lot with a larger entitlement pays a larger share.
Sources
- NSW Government – Strata levies, finances and insurance
- NSW Government – Managing strata finances and insurance
- NSW Government – Levies (for committees)
- Strata Schemes Management Act 2015 (NSW) – ss 80, 81, 85
- NSW Government – Guide to strata law changes for strata committees and owners
- Queensland Government – Sinking fund
- Consumer Affairs Victoria – Owners corporation fees
- Landgate – Managing finances and insurance fact sheet
- Law Handbook SA – Strata corporation finances
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