Can the strata manager raise their fee every year?
A strata manager may be able to raise their fee each year, but not simply because a new year has started. The increase must be authorised by the signed management agreement — a clear CPI, fixed-percentage or fee-review clause — or accepted through a valid variation, renewal or new appointment. Without a mechanism, a manager generally cannot lift the base fee unilaterally during a fixed term.
Answer from the contract first. A new financial year, budget cycle or AGM does not by itself create a right to increase the management fee.
The manager's annual base fee is a contract price. Some agreements lock that price for the whole term. Others let it change on an anniversary date using a stated index or percentage. The manager must be able to point to the agreed mechanism, or to a later variation, renewal or appointment that the scheme validly accepted.
Four common ways the fee can change
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What is not automatically an annual manager fee increase
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How is an annual increase calculated?
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Worked example for a 40-lot scheme with a current annual base fee of A$16,000 including GST: a 3.5% CPI-linked adjustment produces A$16,560; a fixed 4% clause produces A$16,640; a fixed A$750 uplift produces A$16,750; a negotiated reset produces whatever new price the scheme validly approves. These figures are illustrative only — they are not market benchmarks or recommendations.
Read the fee-review clause word by word
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What do Australian laws and official materials indicate?
There is no single national annual increase rule for strata managers. The management agreement, the resolution that approved it, agency law, state or territory strata law and Australian Consumer Law must be read together.
In New South Wales, agency rules require the agreement to state when the agent is entitled to remuneration or reimbursement, the related services, the amount or calculation, and payment timing. In Victoria, the official contract of appointment sets out annual fees, additional fees and fee review or CPI arrangements. In Queensland, the applicable regulation module governs the body corporate manager's engagement and its terms. In the ACT, the management contract must state remuneration and functions. In the Northern Territory, the engagement and statutory conduct code govern the manager.
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How should a committee check an annual increase?
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Red flags
The manager says every fee rises annually but cannot identify the contract clause or approving document.
The invoice percentage does not match the stated CPI series, reference quarter, cap or review date.
A CPI increase is applied to every additional-service and disbursement rate even though the clause only covers the base fee.
The new fee starts retrospectively or before the required notice period ends.
A large mid-term price change is described as routine indexation without a written variation or scheme approval.
The manager appears to approve, sign or decide a variation to its own contract on the scheme's behalf.
If the increase appears incorrect
Ask for the clause, calculation and approval record in writing. Pay undisputed amounts and place the issue before the committee or general meeting as required. If it remains unresolved, use the contract and scheme dispute process and obtain advice from the relevant regulator, tribunal service, consumer body or strata lawyer before withholding a disputed contractual amount.
Key takeaways
A manager gains no automatic right to increase fees merely because another year has passed.
A clear CPI, fixed-percentage or other formula in the signed contract can authorise an annual adjustment.
A change outside the agreed formula normally requires a valid variation, renewal or new appointment.
Check the index, review date, compounding, cap, notice, GST and which fee lines the clause covers.
A manager's fee increase is a budget expense — it is not the same decision as increasing owner levies.
Additional services, disbursements and third-party benefits are reviewed separately from the base fee.
Compare expected total cost over the full term alongside service quality and contract risk.
Related questions
Can a strata manager increase their fee every year?
Yes, if the signed agreement contains a clear annual increase mechanism or the scheme validly approves a new amount. A new calendar or financial year alone is not enough.
Does a CPI clause cover disbursements and extra services too?
Only if the clause says so. Many review clauses apply to the base fee alone, so check which schedules are named before accepting an across-the-board uplift.
Can the manager approve the variation on the scheme's behalf?
That is a conflict. A price variation to the manager's own contract should be decided by the committee or owners under the scheme's proper process, not signed off by the manager.
Is a fee increase the same as a levy increase?
No. The manager's fee is one expense line in the budget. Levies are set by the owners to fund the whole approved budget, which includes insurance, utilities, repairs and reserves.