Body Corporate Levies
Regular payments made by all unit title owners to fund the maintenance and management of shared property in a multi-unit development.
What is a Body Corporate Levies?
Body corporate levies are the ongoing fees paid by owners of unit title properties (apartments, townhouses, and other multi-unit developments) to the body corporate. These levies fund the maintenance and management of common property โ shared areas like lobbies, driveways, lifts, pools, gardens, roofs, and structural elements.
Levies are typically set annually at the body corporate's annual general meeting and may be paid monthly, quarterly, or annually. They generally cover day-to-day operating expenses (insurance, cleaning, management fees, utilities for common areas) and contributions to the long-term maintenance fund.
Levy amounts vary enormously depending on the size and type of development. A simple two-unit townhouse development might have levies of $1,000-$2,000 per year, while a large apartment building with a pool, gym, and concierge could charge $8,000-$15,000+ per year. Older buildings or those with deferred maintenance may also face special levies for major repair work.
Why It Matters for Due Diligence
Body corporate levies are a significant ongoing cost that you must factor into your budget when buying a unit title property. They're in addition to your mortgage, rates, and insurance.
Before buying, review the body corporate's financial statements and long-term maintenance plan. An underfunded body corporate means potential special levies in the future โ these can run into tens of thousands of dollars per unit for major works like re-roofing, recladding, or earthquake strengthening. Check the minutes of recent AGMs for any planned increases or major works.
How to Check
Request the pre-contract disclosure statement from the seller (mandatory under the Unit Titles Act 2010). This includes the current levy amount, financial statements, and the long-term maintenance plan. You can also request an additional disclosure statement for more detailed information. Your lawyer should review all body corporate financials as part of due diligence.
Frequently Asked Questions
What is a special levy?
A special levy is a one-off charge to all unit owners for unexpected or major expenses not covered by the regular levies or long-term maintenance fund. Examples include earthquake strengthening, roof replacement, or remediation of weather-tightness issues. These can be tens of thousands of dollars.
Can body corporate levies increase?
Yes, levies can increase each year. The body corporate committee proposes a budget at the AGM, and owners vote on it. Increases are common as buildings age and maintenance costs rise. Review the trend in levy increases over recent years before buying.
Related Terms
Body Corporate
GlossaryThe legal entity made up of all unit title owners in a multi-unit development, responsible for managing common property and shared affairs.
Unit Title
GlossaryA form of property ownership for apartments, townhouses, and other multi-unit developments where each owner holds title to their individual unit and shares ownership of common property.
Rates
GlossaryAnnual property taxes charged by your local council to fund public services, infrastructure, and local government operations.
Ground Rent
GlossaryRegular payments made by leasehold property owners to the landowner for the right to use the land their property sits on.
Settlement
GlossaryThe day ownership of a property officially transfers from the seller to the buyer and the purchase price is paid in full.
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