Australia | Fees and Levies
Strata Fees and Levies: How They Are Set and Split
Every strata scheme collects money from its owners to pay for the shared parts of the property. In New South Wales, Queensland and Victoria the money goes into two funds, each owner's share follows a number on the scheme's plan, and each state sets its own rules for late payment.
The short answer
- Strata fees, also called levies or body corporate fees, are what each owner pays the scheme to run and repair the shared parts of the property.
- Every state uses two pots of money: one for day-to-day costs and one for long-term repairs. NSW calls them the administrative fund and the capital works fund; Queensland, the administrative fund and the sinking fund; Victoria, annual fees and a maintenance fund.
- Your share is set by a number on the scheme's plan: unit entitlement in NSW, contribution schedule lot entitlement in Queensland and lot liability in Victoria.
- Each state sets its own rules for notice, interest on late payment and recovery of unpaid levies.
- None of the three regulators' pages we read publishes an average levy. Fees depend on the scheme's own budget.
What strata fees pay for
Victoria's law gives the clearest list. Annual fees cover administration, maintenance and repairs, insurance and other recurring costs of the owners corporation (Owners Corporations Act 2006, s 23). NSW and Queensland split the same costs between a day-to-day fund and a fund for large repairs.
The long-term fund builds up money for large, planned costs, such as replacing a roof. NSW requires a 10-year capital works fund plan and Queensland a sinking fund budget for at least 9 years. Victoria requires a maintenance plan only for owners corporations of 51 lots or more, and smaller ones may choose to have one (s 36). A NSW two-lot scheme can skip the capital works fund on the conditions below.
The funds and the rules, by state
Scroll the table sideways on a phone.
| New South Wales | Queensland | Victoria | |
|---|---|---|---|
| Day-to-day fund | Administrative fund (Act s 73) | Administrative fund | Annual fees for administration, maintenance, repairs, insurance and other recurring costs (Act s 23) |
| Long-term repair fund | Capital works fund, formerly "sinking fund" (Act s 74) | Sinking fund | Maintenance fund, required once a maintenance plan is approved (Act s 40) |
| Long-term plan | 10-year capital works fund plan, reviewed at least every 5 years; standard form from 1 April 2026 | Sinking fund budget reserving for major spending over at least the next 9 years | Maintenance plan for major items over the next 10 years; required for tiers one and two, optional below 51 lots |
| How your share is set | Unit entitlement, shown on the strata plan | Contribution schedule lot entitlement; insurance by interest schedule lot entitlement | Lot liability; insurance fees may be levied by lot entitlement |
| Approving levies | Owners at the AGM, more than 50% voting in favour | Ordinary resolution, from the budgets adopted each year | Annual fees based on lot liability (s 23); a special levy over twice the annual fees needs a special resolution (s 24) |
| Time to pay | At least 30 days' written notice; 14 days for an emergency special levy | Not stated in the sections we read | Fee notice in the approved form with 28 days to pay |
| Interest on late levies | 10% simple interest per year after one month; the scheme can vote to charge none | Up to 2.5% simple interest per month, fixed by ordinary resolution | Up to the maximum under the Penalty Interest Rates Act 1983, if a general meeting authorises it |
NSW rules are from NSW Fair Trading's Levies page (27 October 2025) and finance pages (22 June 2026); the section numbers are those printed on the section 184 certificate form. Queensland rules are from the Small Schemes Module, current as at 1 August 2025. Victorian rules are from the Owners Corporations Act 2006 as at 9 September 2026.
How your share is worked out
The scheme adopts a budget for each fund. The total is split between the lots by a number recorded for each lot. If your lot's number is 30 out of a total of 100, you pay 30% of each levy.
New South Wales: unit entitlement. It is shown on the strata plan, and levies follow it. A poll at a meeting also counts votes by unit entitlement.
Queensland: two schedules. Contributions follow the contribution schedule lot entitlement, set by the equality principle or the relativity principle. Insurance premiums follow the interest schedule lot entitlement, which follows market value (BCCM Act s 46A, s 46B; Small Schemes Module s 81 and s 116).
Victoria: lot liability and lot entitlement. Annual fees and special levies follow lot liability, which must be equal unless lot size, use of shared services or the number of occupiers justifies a difference. Insurance fees may be levied by lot entitlement, which follows market value (Owners Corporations Act 2006, s 23, s 23A and s 24; Subdivision Act 1988, s 27F).
Special levies
A special levy raises money for one cost the budget did not cover. In NSW, an owner must get at least 14 days to pay a special levy for emergency repairs, against 30 days for regular levies. Special contributions are made under section 81(4) of the Strata Schemes Management Act 2015, as printed on the section 184 certificate form.
In Victoria a special levy must follow lot liability, and if it is more than twice the current annual fees it needs a special resolution, unless it pays for urgent safety repairs (Owners Corporations Act 2006, s 24). In a 2-lot owners corporation a special resolution means a unanimous one.
Late levies and recovery
New South Wales. A levy not paid within one month of the due date carries 10% simple interest per year. The owners corporation cannot change that rate, but it can vote to charge no interest. It must give at least 30 days' written notice before debt recovery in NCAT or a court. While a payment plan is in place and being followed, no recovery action is allowed, and recovery costs can be claimed only by order of the Tribunal or a court. From 27 October 2025, levy notices carry a Financial Hardship Information Statement.
Queensland. The body corporate fixes a penalty of simple interest of up to 2.5% for each month in arrears, by ordinary resolution (Small Schemes Module s 84). Unpaid contributions, penalties and reasonable recovery costs are a debt. A debt owing for 2 years must be taken to proceedings within 2 months after the 2 years end (s 85). Debt disputes go to QCAT as minor civil disputes, or to a court; the Commissioner's adjudicators cannot hear them (BCCM Act s 229A).
Victoria. The owners corporation sends a fee notice in the approved form with 28 days to pay, then a final notice (s 31, s 32). It can apply to VCAT once the amount is still unpaid 28 days after the final notice (s 163), or sue for the debt in a court (s 30). Interest is allowed only if a general meeting has authorised it, up to the maximum under the Penalty Interest Rates Act 1983 (s 29). A 2-lot owners corporation does not have to use the fee notice forms (s 7A).
Before you buy: check the levies
Ask for the scheme's last budget, the long-term plan and the certificate for the lot. In NSW the section 184 certificate shows the levies, any levies owing and the plans for funding the 10-year plan. In Queensland the body corporate certificate must be given within 5 business days; the Queensland Government lists the fee as $86.95 from 1 July 2026. In Victoria the owners corporation certificate must be issued within 10 business days.
Common questions
What are strata fees? +
Strata fees are the regular payments each lot owner makes to the scheme. In Victoria's words they cover administration, maintenance and repairs, insurance and other recurring costs (Owners Corporations Act 2006, s 23), and in every state part of the money goes to a fund for large repairs later. They are also called strata levies, body corporate fees or owners corporation fees.
What is the difference between strata fees and strata levies? +
They are two names for the same payment. NSW Fair Trading uses "levies" and calls them contributions to the administrative fund and the capital works fund. A special levy is an extra amount raised for one cost, outside the regular levies.
How are strata fees calculated? +
The scheme adopts a budget for each fund at its annual meeting. The total is then split between the lots by the number on the plan: unit entitlement in NSW, contribution schedule lot entitlement in Queensland and lot liability in Victoria. A lot with a larger number pays a larger share.
Do all owners pay the same strata fees? +
Only if the plan gives every lot the same number. In Victoria lot liability must be equal unless lot size, use of shared services or the number of people living there justifies a difference (Subdivision Act 1988, s 27F). In Queensland contribution schedule lot entitlements follow either the equality principle or the relativity principle (BCCM Act s 46A).
What is a sinking fund or capital works fund? +
It is the fund for large future costs, such as a new roof or repainting. NSW renamed the sinking fund the capital works fund and requires a 10-year plan for it. Queensland keeps the name sinking fund and requires its budget to cover at least the next 9 years. Victoria uses a maintenance fund once a maintenance plan is approved.
Can a two-lot scheme skip the capital works fund in NSW? +
Yes, if the buildings on the two lots are physically separate, no building sits outside the two lots, and the owners corporation passes a unanimous vote. NSW Fair Trading lists the same three conditions for skipping strata building insurance.
What happens if I do not pay my strata levies? +
Interest starts and the scheme can recover the debt. NSW charges 10% simple interest per year once a levy is a month late and requires at least 30 days' written notice before recovery action in NCAT or a court. Queensland allows up to 2.5% a month. Victoria allows interest if a general meeting authorises it, and the scheme can go to VCAT 28 days after a final notice.
Can I get a payment plan for strata levies? +
In NSW, yes. An owner asks on the standard form, a plan can run up to 12 months, and no recovery action is allowed while a plan is in place and being followed. Fair Trading says that from 23 October 2026 a plan may also cover current levies and interest.
Can I vote if I owe strata levies? +
In NSW, an owner behind on levies at the time of the meeting cannot vote, except on a motion that needs approval by everyone. In Victoria, an owner in arrears cannot vote except on special or unanimous resolutions (Owners Corporations Act 2006, s 89B), but this rule does not apply in a 2-lot owners corporation.
How much are strata fees in Australia? +
No state regulator page we read publishes an average, and the amount depends on each scheme's budget: insurance, repairs, any paid manager and the long-term plan. Ask for the last budget and the levy notice before you buy. In NSW the section 184 certificate shows the levies and any amount owing.
Who pays strata fees when a lot is sold? +
Check the buyer's certificate for the lot. In NSW, if a levy owing before the section 184 certificate was issued is not shown on it, the buyer is not liable for it. In Queensland the body corporate certificate is conclusive evidence of its contents, except for an error that is reasonably apparent (BCCM Act s 205(7)).
How long does the scheme have to chase unpaid levies? +
In a Queensland Small Schemes Module scheme, if an amount has been owing for 2 years, the body corporate must start proceedings within 2 months after the 2 years end (s 85). Levy debt disputes in Queensland go to QCAT as minor civil disputes or to a court.
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