A special levy is a one-off payment that is made by owners of strata properties in Australia. It is used to cover unexpected expenses that are not covered by regular strata fees. Special levies can be used to pay for things like repairs to common property, structural defects, legal fees, or insurance premiums.
How are special levies calculated?
The amount of a special levy is usually calculated by the body corporate. The body corporate will consider the cost of the expense that is being paid for, as well as the number of owners who will be contributing to the levy.
When can a special levy be imposed?
A special levy can be imposed by the body corporate at any time. However, the body corporate must give owners at least 21 days’ notice before imposing a special levy.
What if I don’t pay my special levy?
If you don’t pay your special levy, the body corporate may take legal action against you. The body corporate could also charge you interest on the unpaid amount. Remember that you are also an owner of the building you are in, and if the special levy fixes a defect or problem and prevents it becoming a bigger, more costly problem, it can be worthwhile paying for it.
How can I avoid paying a special levy?
The best way to avoid paying a special levy is to make sure that your regular strata fees are paid on time. If you are unsure about whether or not you will be able to pay your regular strata fees, you should contact the body corporate as soon as possible. If you feel passionate and motivated enough, you can also join the strata committee and champion for certain changes and vote against certain special levies which are more for cosmetic upgrades rather than fixing structural defects.
What are the benefits of paying a special levy?
There are a number of benefits to paying a special levy. By paying a special levy, you are helping to ensure that the common property in your strata scheme is properly maintained. You are also helping to ensure that the body corporate has the funds it needs to cover unexpected expenses.
