Strata Levy
Government & Compliance
Regular fees paid by apartment or unit owners to fund the maintenance and management of shared property and common areas.
Full Explanation
Strata levies (also called body corporate fees or owners corporation fees) cover the cost of maintaining common areas, building insurance, lifts, pools, gardens, and building management. They consist of an administration fund (day-to-day expenses) and a capital works fund (long-term maintenance and repairs). High strata levies can significantly reduce your net rental yield. Before purchasing a strata property, always review the levy amount, what it covers, and whether special levies are planned.
Example
Your apartment has quarterly strata levies of $1,800 ($7,200/year) covering building insurance, concierge, pool maintenance, and a sinking fund contribution. This equals $138/week eating into your rental return.
Frequently Asked Questions
Are strata levies tax deductible?
Yes — regular strata levies are fully tax-deductible for investment properties. Special levies for capital improvements may need to be depreciated over time rather than claimed immediately, depending on what the levy funds.