Strata Fees vs Body Corporate Fees

The short answer

Terminology by state

The table below shows the official term used in each state for the governing entity, the fees, the two funds, the elected committee, and the rules that bind lot owners.

Legislation by state

Each state has its own primary Act governing strata and community title schemes. The regulator handles information and complaints; the tribunal resolves disputes that cannot be settled through mediation.

Key regulatory differences

Beyond terminology, there are genuine regulatory differences between states that affect how strata schemes operate day to day.

Capital works / maintenance plans

• NSW: mandatory 10-year capital works fund plan for all schemes. Must be reviewed every 5 years.
• QLD: a sinking fund forecast is required — body corporates must prepare a rolling 10-year projection of expected capital expenditure.
• WA: mandatory 10-year maintenance plan for schemes with 10 or more lots (since the 2020 amendments).
• VIC: maintenance plans are only mandatory for Tier 1 (100+ lots) and Tier 2 (51–100 lots) owners corporations under the 2021 tier system.
• ACT: sinking fund plan required for schemes with 4 or more units.
• SA, TAS, NT: less prescriptive requirements. Not all schemes are legally required to maintain a formal plan.

Insurance requirements

• NSW and VIC: $20 million minimum public liability
• All other states: $10 million minimum public liability

In practice, many schemes carry $20 million regardless of state, as insurers commonly offer this as the standard policy level. Building insurance does not cover the contents of individual lots or improvements made by owners — you need your own contents or landlord insurance for that.

Victoria’s tier system

• Tier 1 (100+ lots): most regulated — mandatory maintenance plan, professional manager, annual audit
• Tier 2 (51–100 lots): maintenance plan mandatory, annual financial statement required
• Tier 3 (10–50 lots): maintenance plan recommended but not required
• Tier 4 (3–9 lots): lighter obligations, no mandatory plan
• Tier 5 (2 lots): minimal regulatory requirements

Queensland’s regulation modules

• Standard Module: default for most residential body corporates
• Accommodation Module: for schemes with short-term letting (e.g. holiday apartments, serviced apartments)
• Commercial Module: for commercial and retail schemes
• Small Schemes Module: for schemes with 6 or fewer lots
• Two-Lot Module: for schemes with exactly two lots (e.g. a duplex)

Each module has different rules about voting thresholds, budgeting procedures, and management requirements. If you are buying into a QLD scheme, check which module applies — it affects your rights as a lot owner.

Dispute resolution by state

How you resolve a strata or body corporate dispute depends on your state. Most states follow a similar pattern — mediation first, then a tribunal hearing — but there are notable exceptions.

• NSW: NSW Fair Trading offers free mediation as a first step. If mediation fails, you can apply to NCAT (NSW Civil and Administrative Tribunal) for a binding order.
• VIC: Contact Consumer Affairs Victoria for information and conciliation. Binding orders come from VCAT.
• QLD: The BCCM Commissioner’s office runs a specialist tiered process: self-resolution, then conciliation, then formal adjudication. Only unresolved matters go to QCAT on appeal. This is the most developed specialist pathway in the country.
• WA: Since the 2020 amendments, the State Administrative Tribunal (SAT) is the primary venue for strata disputes.
• SA: SACAT handles strata disputes, with a strong emphasis on mediation before a hearing.
• TAS: Uniquely, disputes are handled by the Recorder of Titles (Land Titles Office) rather than a civil tribunal.
• ACT: ACAT handles unit title disputes under the Unit Titles (Management) Act 2011.
• NT: NTCAT handles body corporate disputes under the Unit Title Schemes Act 2009.

Common misconceptions

• “Lower levies are always better.” Artificially low levies are a red flag, not a selling point. They often indicate an underfunded sinking/capital works fund, which means you will face a large special levy when something needs fixing. A well-managed scheme charges enough to properly fund both the admin and capital works funds.
• “The strata manager runs the building.” The strata or body corporate manager is a contracted service provider. The committee (elected lot owners) makes the decisions. The manager executes them. The manager cannot act without instruction from the committee.
• “Everything outside my front door is common property.” Not necessarily. What is common property and what is lot property depends on the specific strata plan. Boundaries can differ between buildings. Some items like balconies and courtyards may be “common property subject to exclusive use” — a distinct legal category where the lot owner has exclusive access but the owners corporation is responsible for structural maintenance.
• “You can opt out of the body corporate.” You cannot. Owning a lot in a strata scheme automatically makes you a member of the owners corporation or body corporate. You must pay levies and are bound by the by-laws (or rules, in VIC and the ACT) whether or not you attend meetings.
• “By-laws are just suggestions.” By-laws (or rules) are legally enforceable. Breaches can result in contravention notices and, ultimately, tribunal orders and fines.
• “Strata insurance covers everything.” Building insurance covers the structure and common property. It does not cover the contents of individual lots, personal liability, or internal improvements made by owners. You need your own contents or landlord insurance for that.

What stays the same across every state

Despite the different names and legislation, the following fundamentals apply in every Australian state and territory:

• Two-fund structure: every scheme has an operational fund (admin) and a long-term fund (capital works / sinking / reserve / maintenance)
• Mandatory building insurance: full replacement value cover and public liability are required everywhere
• Unit entitlement-based levies: each lot’s share of levies is proportional to its unit entitlement (a number set on the strata plan reflecting relative value)
• Annual General Meeting: the budget is set at the AGM, where lot owners vote on levy amounts for the coming year
• Elected committee: a committee of lot owners is elected at the AGM to manage the scheme between meetings
• Enforceable by-laws/rules: every scheme has rules governing lot owner conduct, noise, pets, renovations, and use of common property
• Special levies: every state allows the owners corporation / body corporate to raise one-off levies for unexpected costs

If you are comparing properties across state borders, focus on the scheme’s financial health (fund balances, capital works plan, levy history) rather than getting confused by the terminology. The names differ, but the fundamentals are the same.