Strata Fees and Levies Explained
Recently purchased a property and unsure if Strata Levies apply to you?
This guide is designed to answer all your questions surrounding Strata Levies, how they’re calculated and when you’ll be required to pay them.
What are Strata Levies?
Strata Levies refers to the financial contributions all owners in a strata scheme pay.
The levy is generally used for the maintenance and upkeep of a common property.
All schemes are different, so it’s important to refer to your own strata plan for specific details relating to your common property.
What is the difference between the Administration Fund and a Reserve Fund?
The Administration Fund is generally used to make day-to-day expenses such as cleaning, general repairs, strata management fees, insurance costs, pool maintenance, common area electricity costs and caretaker costs.
The Reserve Fund is a separate amount included in the levied contribution which is generally used to facilitate major repairs for unexpected items such as roof maintenance, lift replacement and painting of the entire building.
How are my Levies calculated?
The Council of Owners, guided by the Strata Manager, determine the necessary budget required.
The budget will take into account the amount needed to cover expected and unexpected expenditure. This amount is then presented to all owners at the AGM.
Owners then vote to either accept of amend the proposed budget and levies are calculated based on each lots entitlement. Unit entitlement is determined by a surveyor when the Strata Plan is initially drawn up and is a legal document lodged with Landgate.
I’ve bought a new development, why are my levies increasing?
The original build cost includes a 12 month warranty period, however servicing and repairs are not included in the budget.
When do I pay my Strata Levies?
Strata Levies are generally payable on a quarterly basis determined at your AGM.
You will be advised the dates they are scheduled in your AGM minutes.
What if I can’t afford to pay my Levied contribution?
If you’re unable to pay your contribution by the due date, please contact us immediately.
We can discuss your options available to you.
Visit Blackburne’s Online Portal
We have designed a dedicated portal for you to view and gain copies of Levy documentation here
If you’d like to discuss the requirements of your strata complex development, you can contact us via the enquiry form or call +61 8 9429 5777 and ask to speak to Blackburne Strata Management in Perth.