Short answer
Strata levies are the regular contributions every owner pays to fund the running of the scheme. They’re split between the administrative fund (day-to-day costs like insurance, cleaning and utilities) and the capital works fund (major, long-term works). Owners set them each year at the AGM, and each lot’s share is generally in proportion to its unit entitlement — usually billed quarterly.
What levies pay for
- Administrative fund — recurring running costs: building insurance, cleaning, gardening, common-area electricity, minor repairs, and (if appointed) the strata manager’s fee.
- Capital works fund — the building’s long-term savings for major works: repainting, replacing lifts, re-roofing, major structural repairs.
Keeping these two funds separate is a legal requirement (see Admin Fund vs Capital Works Fund).
How your share is worked out
From the scheme’s budget, divided by unit entitlement — the figure on the strata plan that sets each lot’s share of ownership, levies and voting. A larger entitlement means a larger share (how levies are calculated).
When they’re paid
The owners set the levies at the annual general meeting, and they’re typically billed quarterly.
Levies, handled properly
Getting levies right — the entitlement split, the two funds, notices on time, arrears followed up — is exactly the routine a self-managed scheme has to run well. A system such as Straita issues the notices, tracks what’s paid and keeps the two funds clean, so the committee just approves the budget.
Primary sources
- Strata Schemes Management Act 2015 (NSW) — the two funds, estimates and levying of contributions by unit entitlement.
- NSW Government — Strata schemes (Fair Trading) — levies and what they cover.