A strata scheme is meant to share building maintenance costs fairly among unit owners. But special levies — one-off charges for unexpected repairs or upgrades — can run into tens of thousands of dollars with little warning. Many scheme managers and committees impose levies with minimal transparency or justification. The legislation varies by state, but owner rights to challenge, defer, or spread payments are often unclear or poorly communicated.
What is a Special Levies?
A special levy is an extraordinary charge imposed on unit owners to cover unbudgeted expenses: major building repairs, structural problems, legal disputes, or significant upgrades. Unlike regular levies (collected quarterly or annually), special levies are one-off. They're voted on by the strata committee or at an owner meeting. The cost is typically shared equally or by unit entitlement, so a unit owner may face a bill of $5,000–$20,000+ within weeks.
Red flags to watch for
Most strata legislation requires a formal meeting (either a general meeting or committee resolution with owner notification). A levy imposed without this process is likely invalid under the Strata Schemes Management Act (NSW) or equivalent.
Owners have a right to know what they're paying for. If the scheme manager simply states 'roof repairs: $200,000' without quotes or justification, it's opaque and unacceptable.
Legislation typically allows owners to request deferment or payment plans for special levies. A demand for full payment immediately is overly harsh and may violate owner rights.
A building should maintain a sinking fund (reserve fund) for major works. If special levies are being used instead of proper financial planning, it suggests mismanagement.
If the committee hires a contractor or manager without seeking competitive bids or owner approval, it may be self-dealing or wasteful.
Some repairs (storm damage, structural defects) should be covered by strata insurance. If owners are levied instead, check whether an insurance claim was made.
Your legal rights
In New South Wales, the Strata Schemes Management Act 2015 governs special levies. Section 80 allows levies for extraordinary expenses; they must be approved by a general meeting or by 75% of lot owners if done by resolution. Owners may request deferment under s.85. In Victoria, the Strata Property Act 1998 permits special levies but requires proper notice and owner approval. In Queensland, the Body Corporate and Community Management Act 1997 provides similar protections. Owners have the right to inspect financial records, challenge unreasonable levies, and seek adjudication if disputes arise. Many states also provide for hardship deferment if a levy imposes genuine financial difficulty.
Questions to ask before you sign
- 1What exactly is the special levy for? What repair or upgrade is being done?
- 2Has the committee obtained at least three quotes from licensed contractors?
- 3How was the levy amount calculated, and does it align with the quotes?
- 4Can I defer or request a payment plan rather than pay the full amount immediately?
- 5Was this levy approved by a general meeting or by the required percentage of owners?
- 6Is this repair or upgrade covered by the building's insurance? If so, why is an insurance claim not being made?
- 7Can I inspect the reserve fund report and financial statements to understand why the sinking fund cannot cover this?
Disclaimer: This guide is for educational purposes only and does not constitute legal advice. Contract law varies by jurisdiction and individual circumstances. Always consult a qualified legal professional before making decisions based on this information.