Yes. If you own an apartment in a strata scheme, you usually have to pay strata fees, also called strata levies or owner contributions. These fees help pay for the management, insurance, maintenance and repair of shared property in the building or scheme.
Owning your apartment means you own your private lot, but you also share responsibility for common property such as lifts, gardens, roofs, driveways, foyers, stairwells, external walls and shared building services. Strata fees are the way owners contribute to those shared costs. In NSW, strata levies are described as fees that pay for the management and upkeep of the scheme, and all property owners must pay levies to the owners corporation.
You pay strata fees because ownership in a strata scheme is different from owning a standalone house. You own your apartment or lot privately, but you also share ownership or responsibility for common property with the other owners. That shared property needs money for maintenance, insurance and administration. Strata fees help fund those shared expenses.
For example, strata fees may help pay for:
In Queensland, each lot owner must pay a share of body corporate expenses, and the body corporate budgets for expenses before levying each owner.
Yes, strata fees are usually compulsory for lot owners in a strata scheme. If the owners corporation, body corporate, strata company or equivalent owner group has properly raised a levy, owners generally must pay their share. The exact rules depend on the state or territory, scheme documents and relevant legislation.
In NSW, legislation states that contributions levied by an owners corporation are payable by owners in shares proportional to the unit entitlements of their lots.
Strata fees usually cover shared building expenses. The exact inclusions depend on the scheme, budget, building size, facilities and management agreement.
In Victoria, an owners corporation has the power to set fees for general administration, maintenance and insurance, and may levy special fees for extraordinary expenditure.
Strata fees may be charged in different ways depending on the state and scheme. Common types include:
Strata fees are often paid quarterly, but the payment frequency can vary by scheme. Some schemes may charge monthly, quarterly, annually or according to the approved levy schedule. In NSW, each strata scheme decides how often levies need to be paid, and they are usually paid quarterly.
Owners should check their levy notice, annual budget, meeting minutes and scheme financial records to confirm the amount and due date.
Strata fees are usually calculated based on the scheme's approved budget and each owner's share of the costs. In many schemes, your share is linked to your lot entitlement, unit entitlement or contribution schedule.
Factors that may affect strata fees include:
In NSW, levies are commonly linked to unit entitlements, and contributions are payable by owners in shares proportional to the unit entitlements of their lots.
Yes. Strata fees can increase when the building's costs increase or when owners approve a higher budget. Strata fees may increase because of higher insurance premiums, increased repair and maintenance costs, major building works, fire safety or compliance requirements, inflation and contractor price increases, underfunded capital works plans, unexpected defects or emergency repairs, or new services or improved facilities.
A fee increase is not always a bad sign. Sometimes it means the scheme is properly budgeting for maintenance and future repairs. Very low strata fees may indicate that the building is not saving enough for long-term costs.
A special levy is an additional fee raised to cover costs that are not fully covered by the normal budget or existing funds. Special levies may be used for emergency repairs, building defects, insurance excesses, legal costs, major maintenance projects, unexpected compliance work or urgent common property repairs. Special levies can be stressful for owners, but they may be necessary when the scheme does not have enough money in its funds to pay for important work.
If you do not pay strata fees, the owners corporation, body corporate or strata company may take steps to recover the unpaid amount. This may include reminder notices, interest, debt recovery costs or legal action, depending on the state or territory and scheme rules.
Unpaid levies can also affect the scheme because the money is needed to pay insurance, repairs, contractors and shared expenses. Owners who are having financial difficulty should contact their strata manager or owners corporation as early as possible to discuss payment options.
Usually no. Strata fees are generally paid by the lot owner, not the tenant. A landlord may factor strata costs into the rent they charge, but the legal responsibility to pay levies usually remains with the property owner. Tenants may still need to follow the scheme's by-laws or rules, especially for noise, parking, pets, waste, common areas and building access.
No. Strata fees and council rates are different. Apartment owners may need to pay both strata fees and council rates.
In most cases, no. If you own a lot in a strata scheme and levies are validly raised, you generally cannot avoid paying them. However, owners can participate in meetings, review budgets, question expenses, vote on financial decisions and compare strata management services to help ensure fees are fair and properly used.
Ways owners can manage strata costs include:
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