Body Corporate (Owners Corporation)
Property Management
The legal entity made up of all lot owners in a strata-titled property that manages shared areas and common property.
Full Explanation
A body corporate is automatically created when a strata plan is registered. It is responsible for maintaining common property (lobbies, lifts, gardens, pools), arranging building insurance, and setting by-laws. Lot owners pay quarterly levies to fund these activities. The body corporate holds an annual general meeting where owners vote on budgets, major works, and by-law changes. Terminology varies by state: "owners corporation" in VIC and NSW, "body corporate" in QLD.
Example
The body corporate levies are $4,200 per year, covering building insurance, gardening, lift maintenance, and a sinking fund contribution.
Frequently Asked Questions
Are body corporate levies tax-deductible?
Yes. Body corporate levies (both administration and sinking fund contributions) are fully tax-deductible for investment properties in the financial year they are paid.
What is a sinking fund?
The sinking fund is a reserve maintained by the body corporate for major capital expenditure like roof replacement, repainting, or lift upgrades. It is funded through a portion of your quarterly levies and helps avoid large special levies.