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Budgets, funds and levies in New South Wales

The funds a strata scheme keeps, who prepares and approves the budget, how levies are worked out and noticed, special levies, long-term maintenance plans, spending limits, borrowing and what owners can see, for every Australian state and territory.

In short

  • Every scheme keeps money for day-to-day costs, and most keep a second fund for big future costs. The day-to-day fund is the administrative fund almost everywhere (the ACT also calls it part of the "general fund"). The long-term fund is the capital works fund in NSW, the maintenance fund in Victoria, the reserve fund in WA and the sinking fund in Queensland, SA, Tasmania and the ACT. Whether the second fund is compulsory depends on the state and the size of the scheme. The NT's 2009 Act and Tasmania do not name separate funds at all.
  • Owners approve the budget and the levies, usually at the annual general meeting. The committee (strata committee, executive committee, council or management committee) prepares the figures, but in every state the owners decide them by resolution at a general meeting. A committee cannot set the levies on its own, except Queensland's interim contributions and WA where the by-laws allow it.
  • Levies are shared by each lot's entitlement. That is unit entitlement in NSW, WA, SA strata corporations, Tasmania and the ACT; lot liability in Victoria; contribution schedule lot entitlement in Queensland; lot entitlement in SA community schemes; and contribution entitlement in the NT. A different sharing method needs a stronger resolution (or is not allowed) in most states.
  • Notice, discounts and interest differ a lot. NSW needs at least 30 days' notice before a levy is due, Queensland 30 days, Victoria gives 28 days to pay, the ACT sets the due date no later than 28 days after the notice, and WA, SA strata corporations, Tasmania and the NT set no minimum lead time. Early payment discounts exist only in NSW (10 per cent), Queensland (up to 20 per cent) and the ACT. Interest on late levies is automatic in NSW, WA and the ACT and needs a resolution elsewhere.
  • Long-term maintenance plans are compulsory in NSW, larger Victorian schemes, WA designated strata companies, the ACT (4 or more units) and larger SA schemes; Queensland builds a 9-year view into each year's sinking fund budget. Tasmania and the NT require none.
  • Owners have a legal right to see the books. Every state lets an owner inspect the scheme's records, usually within a set number of days and sometimes for a capped fee.

Related reading: Recovering unpaid levies, Meetings, Voting and proxies and Duties of a self-managing committee.

How it works

A strata scheme is run on the owners' money. There is no outside funding: every cost the scheme has, from insurance and cleaning to a new roof, is paid from levies the owners pay, plus any interest and small amounts like record inspection fees.

The yearly cycle looks much the same everywhere:

  1. Before the AGM, the committee (or treasurer) prepares a proposed budget: what the scheme expects to spend this year on recurring costs, and what it needs to put aside for big future items. Where a long-term plan is required, the budget for the long-term fund is built from that plan.
  2. The AGM notice goes out with the proposed budget and the accounts for the year just ended, so owners can read them before they vote.
  3. At the AGM, owners approve the budget (or change it, within limits in some states) and fix the levies: the total amount, how many instalments and when each is due.
  4. Levy notices go to each owner, giving the amount for their lot, the due date and how to pay. Some states set a minimum time between the notice and the due date and say what the notice must contain.
  5. During the year, the committee spends within the approved budget. Spending beyond it, or big one-off items, usually needs a further resolution at a general meeting, and an unexpected cost may need a special levy.

Each lot's share is set by its entitlement, which is recorded on the strata plan, units plan or scheme statement. A lot with twice the entitlement pays twice as much. Some states allow, or require, a different split for costs that benefit only some lots.

The funds belong to the scheme, not to individual owners. They are kept in an account in the scheme's own name or, where a professional manager handles the money, in an account the state's law allows, such as the manager's trust account.

State by state

New South Wales

Funds. An owners corporation keeps an administrative fund for day-to-day costs and a capital works fund for major future spending such as repainting, replacing property and renewing fixtures (Strata Schemes Management Act 2015 ss 73, 74 and 79). A two-lot scheme need not have a capital works fund if the owners corporation decides so by unanimous resolution, the buildings on one lot are physically detached from those on the other, and no building is outside the lots (s 74(5)).

10-year plan. Every owners corporation prepares a 10-year capital works fund plan and reviews it at least every 5 years (SSMA s 80). Since 1 April 2026 a plan must use the prescribed standard form when the owners corporation revises an existing plan or prepares a new one to replace a plan that has run its 10 years; a scheme with an existing plan that is not yet being revised or replaced need not convert it (s 80(4); Strata Schemes Management Regulation 2016 cl 17I; NSW Fair Trading, guide to strata law changes, updated 1 October 2026). Every AGM has an item to prepare or review the plan (Schedule 1 clause 6).

Budget. At each AGM the owners corporation estimates what the administrative fund needs for maintenance, insurance and other recurring costs, and what the capital works fund needs, taking the 10-year plan into account. A large scheme (more than 100 lots) itemises its estimates and notes differences from the plan, with reasons (SSMA s 79(6)). The financial statements run to a date no earlier than 2 months before the meeting, and the AGM notice carries the statements of key financial information (s 92(2); Schedule 1 clause 9).

Levies. Contributions to each fund are set at the same meeting that sets the estimates (SSMA s 81(1) and (2)) and are shared in proportion to unit entitlement (s 83(2)). A levy notice must give at least 30 days to pay, or 14 days for a levy raised for emergency repairs, meaning urgent repairs needed to deal with a serious and imminent threat to occupants' health or safety (s 83(3A) and (5)). Every levy notice comes with the information the Secretary approves (s 83(1A)): since 27 October 2025 that is the Strata Financial Hardship Information Statement (NSW Fair Trading, levy notices).

Discount and interest. A general meeting can resolve that an owner who pays before the due date pays 10 per cent less (SSMA s 85(4)). A levy not paid when due bears simple interest at 10 per cent a year until paid, but no interest is payable if it is paid within one month after the due date. The owners corporation can resolve that a contribution bears no interest (s 85(1) to (3)). See Recovering unpaid levies for payment plans and recovery.

Special levies. If the owners corporation faces expenses it cannot meet at once from either fund, it must levy a further contribution to the administrative or capital works fund, decided at a general meeting (SSMA s 81(4)).

Spending and borrowing. The strata committee cannot make a decision that the Act requires to be made by unanimous or special resolution or in general meeting, or one the owners have reserved to a general meeting (SSMA s 36(3)). The owners corporation needs at least 2 independent quotes for any item costing more than $30,000, and a large scheme cannot spend more than 10 per cent above an item's AGM estimate unless a general meeting lifts the limit; emergencies such as burst pipes and storm damage are exempt (s 102; Strata Schemes Management Regulation 2016 cl 25). An owners corporation may borrow and give security, but not by a charge over the common property, and only after a resolution at a general meeting approves the loan (s 100).

Audit. Accounts are audited where the scheme has more than 100 lots or an annual budget over $250,000 (SSMA s 95; SSMR cl 21).

What owners can see. An owner, mortgagee or covenant chargee (or someone they authorise) can ask in writing, with the fee, to inspect the strata roll, the financial records, the 10-year plan, insurance policies and other records (SSMA s 182). If a time cannot be agreed within 3 days, the owners corporation sets a time within 10 days of the request, and inspection can be in person or by secure electronic access (s 183). The fee for an owner is $31 for the first hour and $16 for each extra half hour or part (Strata Schemes Management Regulation 2016 Schedule 4 item 2). Most records are kept for 7 years (s 180).

Pending. At 2 October 2026 the Strata Schemes Legislation Amendment (Miscellaneous) Bill 2026 was before the Legislative Council. It would require a reminder notice 7 to 10 days after a levy falls due (proposed SSMA s 85A) and free two-lot schemes from AGMs, the committee and the 10-year plan (proposed s 7A). It is not law (NSW legislation, bill).

If it goes wrong: where to get help

StateContact first (information)Who decides disputes
NSWNSW Fair Trading, including free mediationNSW Civil and Administrative Tribunal (NCAT); levy debts can also go to a court
VICConsumer Affairs VictoriaThe owners corporation's internal dispute process, then VCAT
QLDOffice of the Commissioner for Body Corporate and Community ManagementCommissioner's conciliation and adjudication; levy debts go to QCAT or a court
WALandgate, strata titlesState Administrative Tribunal; levy debts go to the Magistrates Court
SAConsumer and Business Services and the Legal Services CommissionThe Magistrates Court (District Court with permission) for disputes (Strata Titles Act 1988 s 41A; Community Titles Act 1996 s 142); unpaid levies are recovered as a debt
TASLand Titles Office, strata informationThe Recorder of Titles, with appeal to the Tasmanian Civil and Administrative Tribunal (TASCAT) (Strata Titles Act 1998 s 144)
ACTAccess CanberraACT Civil and Administrative Tribunal (ACAT)
NTNT Government, dealing with a body corporateNT Civil and Administrative Tribunal (NTCAT)

How FairLot helps

FairLot is software the committee uses. It never holds the scheme's money, never sets levies and never decides anything for the owners.

  • Levies and arrears: levy schedules, notices and statements, with payments going straight into the scheme's own account. FairLot warns when a notice gives less than your state's minimum lead time, or when a proposed interest rate or discount is above the limit, and applies automatic interest only where your state's law does.
  • Statutory forms: levy and final notices for your state, filled in from your records, with the official form linked where the law requires one.
  • Meetings and notices: AGM notices with the budget and contribution motions your state's AGM needs, and the right notice period.
  • Compliance calendar: reminders for the 10-year plan review, sinking fund budget, maintenance plan report, forward plan or audit your state and scheme size require.
  • Owner portal and documents: owners see their levies, the budget, accounts and minutes themselves, which covers much of what they would otherwise ask to inspect.
  • Audit trail and export: every change is recorded with who made it and when, and everything can be exported at any time.

Common questions

Can the committee put the levies up without a meeting?

No, in every state the levies are set by the owners at a general meeting, usually the AGM. The exceptions are narrow: in Queensland the committee can set an interim contribution until the AGM fixes the year's levies, and in WA the by-laws can give the council the power. Everywhere else the committee prepares the budget but the owners vote on it.

What is the difference between the admin fund and the sinking fund?

The administrative fund pays recurring costs such as insurance, cleaning, gardening and minor repairs. The long-term fund (capital works fund in NSW, maintenance fund in Victoria, reserve fund in WA, sinking fund elsewhere) saves for large, less frequent items like painting, roofs, lifts and driveways. Tasmania has one fund that may be split into recurrent and capital parts, and the NT's 2009 Act does not require separate funds.

Why does my neighbour pay a different levy from me?

Levies are shared by each lot's entitlement (unit entitlement, lot liability, contribution schedule lot entitlement or contribution entitlement, depending on the state), which is fixed when the scheme is created and usually reflects size or value. Some states also let a scheme charge more to a lot whose use adds costs, or share works that benefit only some lots on a benefit basis (Victoria's OCA ss 23 and 24, and the ACT's fair method by special resolution).

Can we get a discount for paying on time?

Only in NSW (10 per cent, by general meeting resolution), Queensland (up to 20 per cent, by ordinary resolution) and the ACT (by ordinary resolution, no maximum set). Victoria, WA, SA, Tasmania and the NT have no early payment discount provision.

How is a special levy approved?

By a resolution at a general meeting in every state. It is an ordinary resolution in Queensland, WA, SA, Tasmania and the ACT, and a resolution at a general meeting in NSW. In Victoria it needs a special resolution if it is more than twice the annual fees (unless it is for urgent safety repairs). In the NT a levy for a single item needs a special resolution and a recurring levy a unanimous resolution. SA community corporations also need a special or unanimous resolution for large spending, measured per lot.

Do we need a 10-year maintenance plan?

NSW: yes, every scheme (a detached two-lot scheme may opt out of the capital works fund), in the standard form when the plan is revised or replaced. Victoria: yes for 51 or more occupiable lots, optional below. Queensland: no separate plan, but each year's sinking fund budget must reserve for at least the next 9 years. WA: yes for 10 or more lots or a building replacement cost over $5 million. SA: a 3 or 5 year forward plan for 7 or more lots unless the common property is insured for $200,000 or less. ACT: yes for 4 or more units. Tasmania and the NT: no.

Can the committee spend money that is not in the budget?

Only within limits. Queensland has a committee spending limit ($200 per lot by default) and needs 2 quotes for major spending. WA allows up to $500 per lot a year outside the budget, or more after a 14-day objection period. The ACT allows general fund spending outside the budget only by ordinary resolution. SA community corporations need a special or unanimous resolution for large spending. In the NT the body corporate may set a committee limit. NSW needs 2 independent quotes above $30,000 and caps a large scheme at 10 per cent over each AGM estimate, but sets no general dollar cap on the committee. Victoria and Tasmania set no dollar cap. Everywhere, the committee cannot decide matters reserved for a general meeting. All states allow urgent or legally required spending.

Can our scheme take out a loan?

Generally yes. Queensland: ordinary resolution, and to owe more than $250 per lot, a resolution without dissent under the Standard Module or a special resolution under the Accommodation and Commercial Modules ($3,000 in total under the Small Schemes Module). Victoria: ordinary resolution up to one year's annual fees, special resolution above that. ACT: special resolution. NSW: a resolution at a general meeting approving the loan. WA and SA strata corporations have a power to borrow. NSW, Victoria, WA and the ACT do not allow the common property itself to be mortgaged or charged. In the NT, a mortgage or charge over a body corporate asset needs a resolution without dissent.

Can I see the scheme's bank statements and accounts?

Yes. Every state gives owners a right to inspect the scheme's financial records: Victoria free of charge at a reasonable time, Queensland within 7 days, WA within 10 days, the ACT within 14 days, the NT within 10 working days, SA within 5 business days, and NSW within 10 days if no time is agreed. Fees and the exact records covered vary by state.

Sources

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