When you buy into a strata-titled property in NSW, you’re not just investing in your apartment—you’re also taking responsibility for maintaining the building and common property. That’s where strata levies come in.

Levies are the financial lifeblood of a strata scheme, funding everything from routine cleaning to major repairs. But how do they work, and what happens if they go unpaid? Let’s break it down.

The Three Types of Levies

Most strata owners will encounter three types of levies:

• Administrative fund levies: Cover the day-to-day running costs of the building, such as cleaning, gardening, insurance premiums, and minor repairs.
• Capital works (sinking fund) levies: Go towards long-term projects like roof replacement, repainting, or upgrading lifts. These levies also cover unexpected emergencies.
• Special levies: Raised as one-off contributions for specific needs—for example, urgent structural repairs or legal costs from unexpected disputes.

Each year, the Owners Corporation reviews and approves the budget at the Annual General Meeting (AGM), which sets the levy amounts. Your contribution is proportional to your unit entitlement, meaning larger apartments generally pay more.

Can Levies Be Disputed?

Unlike council rates, strata levies aren’t negotiable. Once approved at the AGM, all owners must pay their share. If you disagree with the budget, the time to raise objections is before or during the AGM—not after the levies have been struck.

What Happens If Levies Go Unpaid?

The Strata Schemes Management Act 2015 (NSW) provides strict enforcement mechanisms. If levies remain unpaid more than one month after the due date:

• The Owners Corporation can charge interest on the arrears (up to 10% per annum).
• The Owners Corporation can authorise the strata manager to engage a debt collector or solicitor to recover the debt.
• The NSW Civil and Administrative Tribunal (NCAT) can order the lot owner to pay not only the overdue levies but also interest and reasonable recovery costs.

In severe cases, if arrears accumulate, bankruptcy or property repossession proceedings may follow.

Why Prompt Payment Matters

Unpaid levies don’t just affect the individual owner—they affect the whole community. Late payments:

• Put pressure on the scheme’s cash flow.
• Can trigger unnecessary special levies, hitting compliant owners in the hip pocket.
• Delay repairs and reduce the standard of property maintenance.

In other words, when one owner doesn’t pay, everyone feels the impact.

What If You’re Struggling to Pay?

Life happens—unexpected financial stress can make it difficult to pay levies on time. If this happens:

• Notify the Strata Committee or your strata manager before the due date.
• In some cases, a payment plan or temporary arrangement can be made to avoid penalties.
• Communication is always better than letting arrears build up.

Metro Strata’s Role

At Metro Strata, we encourage Owners Corporations to act quickly on levy arrears. It’s far easier to recover a small amount promptly than to chase a significant debt later.

We also help committees maintain financial transparency, so owners understand exactly where their money is going and how it benefits the scheme.

Final Word

Strata levies are the backbone of every NSW strata community. Paying them on time ensures your building runs smoothly, common areas stay well-maintained, and everyone shares the load fairly.

If you’d like to know more about managing levies or improving your scheme’s financial health, book a free, no-obligation strata management consultation with Metro Strata today.