Owners Corporation Fees — What Do They Cover? (Australia 2026)
Owners corporation fees (also called body corporate levies or strata fees) are the mandatory contributions all lot owners make to fund the management and maintenance of the strata scheme. Understanding exactly what those fees cover helps you assess whether they represent good value — and what gaps you need to address in your own insurance and maintenance budget.
What Owners Corporation Fees Cover
Building Insurance (Compulsory)
This is typically the largest single item in the admin fund for most strata schemes.
Covers:
- Damage to the common property and the structure of the building (external walls, roof, shared infrastructure)
- Public liability insurance for the common property
- Some schemes include “lot owner fixtures” (built-in cabinets, flooring within lots) in the building policy
Does NOT cover:
- Your personal contents (furniture, clothing, electronics)
- Your personal liability within your lot
As a lot owner, you should hold your own contents insurance (and possibly a separate lot-owner liability policy) to cover what the building insurance doesn’t.
Strata Management Fees
If the owners corporation engages a professional strata manager (which most do), their fees are paid from the admin fund.
What the strata manager does:
- Administers levies (issues levy notices, collects payments, pursues arrears)
- Organises and minutes meetings (AGM, committee meetings)
- Maintains financial records
- Manages insurance renewals and claims
- Coordinates maintenance contractors
- Ensures legislative compliance
Cost: Varies significantly by scheme size and manager. Typically $60–$150 per lot per quarter for basic management. Large or complex buildings pay more.
Common Area Maintenance and Cleaning
Routine maintenance of common property — garden maintenance, cleaning of lobbies and corridors, pool maintenance, lift maintenance.
Typical annual costs (per scheme, not per lot):
| Item | Annual range |
|---|---|
| Garden and grounds maintenance | $3,000–$20,000+ |
| Common area cleaning | $5,000–$30,000+ |
| Pool and spa maintenance | $3,000–$12,000+ |
| Pest control | $500–$2,000+ |
| General maintenance and repairs | $2,000–$15,000+ |
Common Area Utilities
Electricity for shared areas:
- Lift motor rooms
- Common area lighting (stairwells, corridors, car parks)
- Pump systems (pressure pumps, stormwater pumps, pool filtration)
- Shared irrigation systems
Capital Works Fund Contributions
A portion of your quarterly levy goes to the capital works fund — savings accumulated for major future replacement items. This is a compulsory contribution set by the capital works fund plan.
Administration and Compliance
- Accounting and auditing (annual financial statements, tax returns for the scheme)
- Legal costs (routine)
- Certifications and compliance inspections (fire safety, pool safety)
What Is NOT Covered by Owners Corporation Fees
| Item | Who pays |
|---|---|
| Your contents | Lot owner’s own insurance |
| Your personal liability | Lot owner’s own liability cover |
| Internal maintenance of your lot | Lot owner |
| Internal plumbing and electrical within your lot | Lot owner |
| Window, balcony door, and internal fixture maintenance | Usually lot owner (check strata plan boundaries and by-laws) |
How Fees Are Calculated Per Lot
Fees are divided among lot owners based on unit entitlement — a number assigned to each lot in the strata plan, proportionate to the lot’s relative value at the time of registration.
$$\text{Your quarterly levy} = \frac{\text{Your lot entitlement}}{\text{Total scheme entitlement}} \times \text{Total quarterly levy required}$$
Example:
- Total annual levy requirement: $120,000
- Total unit entitlement: 500
- Your lot’s entitlement: 20
$$\text{Your annual levy} = \frac{20}{500} \times $120{,}000 = $4{,}800/\text{year} = $1{,}200/\text{quarter}$$
Assessing Value for Money
When buying into a strata scheme, compare the levy level against:
- Building age (older buildings need more maintenance; capital works fund should be higher)
- Building amenities (pool, gym, concierge — add operating cost)
- Scheme size (smaller schemes have higher per-lot overhead for fixed costs)
- Levy history (steady growth suggests well-managed; sudden spike suggests crisis)
Online tools: Strata inspection reports typically include a breakdown of the financial statements — review these in detail before purchasing.
Frequently Asked Questions
Why did my levies increase so much this year?
Common reasons: building insurance premium increases (a major driver in recent years due to cladding and natural disaster claims); increased maintenance costs; building ageing; correction of previously under-budgeted levies; strata management fee increases. Review the budget presented at the AGM for a breakdown.
My scheme has a professional manager but nothing ever seems to get done. What can I do?
The committee is ultimately responsible for instructing the manager — the manager acts on the committee’s instructions. Attend the AGM, nominate for the committee, and advocate for action there. If the manager is performing poorly, the committee can terminate their management agreement.
Do I pay levies during settlement or only after?
From the date of settlement onwards. The vendor is responsible for levies up to settlement; you take over from that date. Your conveyancer adjusts council rates, water rates, and strata levies at settlement so each party pays their proportionate share.
Related Strata Guides
- Strata Levies Explained — Admin Fund and Capital Works Fund
- Special Levies — What Happens When Strata Raises a Special Levy
- What Is Strata Title? A Complete Guide
- Strata Title Australia Hub
This article provides general information about owners corporation fees in Australia. Levy amounts and inclusions vary significantly by scheme. Review the financial records and budget before purchasing a strata-titled property. Find a conveyancer through MoneySmart.