Strata levies are calculated in two stages. First the owners corporation, body corporate or strata company approves the amounts needed for operating costs and future major works. Second, each lot is allocated a share using the applicable measure — unit entitlement, lot liability, a contribution schedule or another lawful method.
Levies are not a price a manager picks for each apartment. They start with the scheme's approved budgets, then each lot pays a share based on the allocation measure recorded in the scheme documents and required by law.
A levy begins with the scheme's expected costs. Owners approve budgets for everyday expenses such as insurance, cleaning, utilities, administration and routine maintenance, plus any amount required for a capital works, sinking, maintenance or reserve fund. The scheme then applies the legally relevant allocation measure to those approved amounts. That measure is recorded in documents such as the registered strata plan, plan of subdivision, community management statement or schedule of lot entitlements.
This is why two lots in the same building can pay different levies even though they use the same entrance and lift — their registered allocation shares may differ. It is also why dividing the annual budget by the number of lots can be wrong: equal division only produces the correct answer when the applicable entitlements are equal, or when a lawful scheme rule or resolution requires equal shares.
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Lot levy = approved fund amount × (lot share ÷ total shares).
Use the entitlement or liability measure that legally applies to the particular fund or charge. Do not substitute floor area, market value or lot count unless the scheme documents and the law make that the correct basis.
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Assume a scheme approves A$120,000 for its operating fund and A$80,000 for its future-works fund. The same entitlement schedule applies to both funds and the scheme total is 1,000 entitlement points. The combined annual amount is A$200,000, so the rate is A$200 per point each year.
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Quarterly billing changes when the owner pays, not the total annual liability. If the scheme has unequal instalments or a different payment frequency, use the approved levy schedule rather than simply dividing by four.
A special levy of A$60,000 across 1,000 applicable points gives a lot holding 10 points a 1% share, or A$600. In NSW, special levies are calculated by unit entitlement. In Victoria, special fees may apply the benefit principle where works benefit some lots more than others.
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NSW Government guidance gives a capital works example requiring A$20,000 a year across 200 unit-entitlement points. The rate is A$100 per point: a lot with 15 points pays A$1,500, a lot with 10 points pays A$1,000, and a lot with 5 points pays A$500.
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Arrears, interest, recovery costs, penalties, individual utility use, owner-caused damage and exclusive-use costs may appear on an owner's account but are not necessarily part of the ordinary entitlement-based levy. Identify each line item separately.
Mixed-use schemes need extra care: retail, commercial, residential and parking lots may receive different benefits or fall within different cost classes, so review the registered rules, schedules and resolutions instead of assuming one percentage applies to every expense.
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When comparing strata managers, ask how each provider verifies entitlement schedules, reconciles levy totals to approved budgets, documents exceptions, controls rounding and explains calculations to owners. The underlying allocation law does not change with the manager, but calculation controls and communication quality do.
Compare written fee proposals from strata managers covering your building — free for owners corporations, no obligation.