Understanding strata levies: Where does your money go?

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Levies are an essential component of strata living, ensuring the smooth operation and maintenance of your property. But you may be curious about where all the money from strata levies actually goes. It’s a fair question, considering the significant financial commitment involved.

At All Suburbs Strata Management, our team has over 35 years of experience in residential strata management in Sydney and on the Central Coast. Over the years, we’ve encountered this question quite frequently. Strata finances can indeed be complex, but here, we will simplify the matter, providing you with a clear understanding of where and how your strata levies are allocated.

About strata levies

All owners are charged a yearly strata levy, also known as a contribution or fee. These levies are determined at the strata scheme’s annual general meeting (AGM) and are allocated to various funds, such as the administrative fund and capital works fund. The treasurer or strata manager calculates the levy amount based on each owner’s ‘unit entitlement‘. The frequency of levy payments is decided by the owners corporation.

The administrative fund, also known as the everyday fund, handles the routine expenses necessary for the operation of the strata scheme.

These costs include the maintenance of common property, insurance payments and regular utilities such as electricity and water, as well as services like carpet cleaning and garden maintenance.

The capital works, or fixing and maintaining fund, is designated for covering capital expenses as they arise. These expenses typically involve significant maintenance or improvement projects for the common property. Examples include painting or repainting common areas, repairing infrastructure, acquiring outdoor furniture and upgrading fixtures and fittings that form part of the common property. Additionally, the fund may cover project management, supervision and related expenses associated with these works.

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Some specifics that your levies pay for

Maintenance and repairs to common property

One of the primary purposes of strata levies is to cover the costs associated with upkeep and repairs, from routine upkeep like gardening and cleaning common areas to larger-scale projects such as painting, roof repairs and structural maintenance. By pooling funds, strata schemes can ensure prompt and efficient action when addressing maintenance and emergency issues.


Another significant expense covered by strata levies is insurance premiums. While individual occupiers are responsible for their own contents insurance, strata insurance provides essential protection for the entire property, including common areas, shared facilities and building infrastructure. This coverage extends to risks such as fire, storm damage and public liability.

Administrative costs

Strata levies also contribute to the administrative costs associated with managing the scheme. These include fees for legal expenses, accounting fees, other overheads and professional strata management. Strata managers provide vital support to strata schemes, from overseeing the daily operations of the property to ensuring compliance, facilitating communication with residents and coordinating essential services.

Transparent financial reporting

When it comes to strata finances, transparent, accurate financial reporting is key. At ASSM, our strata managers provide clear and comprehensive financial reports to ensure property owners have visibility into how their levy payments are being allocated. We work closely with owners corporations to develop budgets, track expenditures and make informed financial decisions that support the ongoing maintenance and improvement of the property.

Our team handles all aspects of levy administration, including issuing levy notices, collecting payments and managing delinquent or overdue accounts.

We maintain thorough levy collection records within the strata’s trust accounts, ensuring accountability and financial transparency for all stakeholders.

Why choose All Suburbs Strata Management?

While strata levies can seem a significant expense, they’re essential for communal living. If facing financial hardship, contact your owners corporation and strata manager promptly to arrange a payment plan.

For strata scheme owners with ASSM, you can trust that your levy payments are utilised effectively to maintain and enhance your property, ensuring a harmonious and sustainable living environment for all residents.

We are experts in residential, community, commercial and industrial strata schemes and have over 35 years of experience in strata management, covering all suburbs in Sydney. We also assist developers in preparing for registration and provide strata reports and inspections.

Our team can ensure your strata scheme runs as smoothly as possible. When considering buying into a strata scheme or wanting to engage a professional and qualified team, contact ASSM today.

Service Areas

We provide Australia’s most professional and comprehensive strata management services across Greater Sydney and other parts of NSW. Our expertise spans residential, community, commercial and industrial strata schemes. It’s easy to switch to All Suburbs Strata Management. See the extensive range of suburbs our certified strata managers oversee below.

We are compliance and administration experts, relationship builders and proactive problem solvers.

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