What Do Strata Levies Pay For?
Strata Levies contribute to the operating expenses of strata properties and are divided into 2 separate funds being:
Administration Fund – intended for current operating costs; such as:
General Maintenance of shared or what’s known as common property
Mowing and gardening of common property
Cleaning of common property
In a perfect world the administration fund would have a $0 balance as you only budget for what you spend.
Sinking Fund – intended for the long-term maintenance of the buildings and improvements to the property, such as:
Replacing common area carpets
Repainting of common areas
Replacement of guttering
Replacement of garage door
How and when are levies determined?
Levy contributions are reviewed yearly by the owners at their annual general meeting, the amount of levies you pay is determined by the owners at the meeting based on the budget sent out with the meeting notice, it is important to look at the meeting notice carefully so you are fully aware what your levies are likely to be.