What Do Strata Fees Cover?
Strata fees (also called strata levies or body corporate fees) are the regular contributions that lot owners make to fund the shared costs of running and maintaining a strata building.
In Australia, strata fees are split across two separate funds: the admin fund (for day-to-day operating costs) and the capital works fund (also called the sinking fund, for major future repairs and replacements).
Understanding what each fund covers helps you assess whether your levies are reasonable and whether your building is being maintained appropriately.
Use our Strata Fee Calculator to estimate what levies might look like for your property type and building.
Updated: 2026
Strata fees at a glance
Strata fees fund two separate pools:
- Admin fund: day-to-day operating costs — cleaning, electricity, gardening, minor repairs, insurance, management fees
- Capital works fund: major future expenses — roof replacement, lift upgrades, exterior painting, structural repairs
- Building insurance: always included — owners corporations are legally required to insure the building
- Amenities: pools, gyms, and other shared facilities increase levies
- Special levies: one-off charges raised when the admin or capital works fund is insufficient
How strata fees work
When you own a lot in a strata scheme — an apartment, townhouse, or villa — you automatically become a member of the owners corporation (called body corporate in Queensland). The owners corporation is responsible for managing, maintaining, and insuring the common property: the shared structure, hallways, lifts, gardens, pools, and anything outside the individual lots.
To fund these responsibilities, the owners corporation sets a budget each year at the Annual General Meeting (AGM). Each lot owner pays a share of this budget as a levy, typically quarterly. Your share is based on your unit entitlement — a number assigned to each lot that reflects its relative value within the scheme. Larger or more valuable lots generally have higher unit entitlements and pay more.
The levy is split between two mandatory funds. The admin fund covers ongoing operational expenses expected within the next year. The capital works fund is a long-term savings pool for major repairs and replacements that are anticipated in the 10-year capital works plan (required by law in most states).
Well-managed buildings maintain healthy balances in both funds, which avoids the need for special levies and gives owners predictability. Underfunded buildings often face large one-off levies when major works are needed and there are insufficient reserves.
Admin fund expenses
The admin fund covers the day-to-day running costs of the building. These are recurring, predictable expenses budgeted for each financial year. Typical costs include:
Common admin fund costs
| Expense | Description | Typical Annual Cost |
|---|---|---|
| Cleaning | Hallways, lifts, foyers, shared areas | $5,000 – $20,000 |
| Electricity (common areas) | Lighting for hallways, car parks, lifts | $5,000 – $15,000 |
| Gardening & landscaping | Shared gardens and outdoor spaces | $2,000 – $10,000 |
| Minor repairs | Routine maintenance and small repairs | $3,000 – $15,000 |
| Strata management fees | Professional management | $3,000 – $8,000 |
| Pest control | Regular pest treatments | $500 – $3,000 |
Costs shown are indicative annual totals for a medium-sized building. Actual amounts vary by building size, location, and condition.
Want to estimate your strata fees?
Our calculator estimates quarterly strata levies based on property type, location, building age, and the amenities in your building.
Use the Strata Fee Calculator →Capital works fund
The capital works fund (called the sinking fund in some states) is a savings pool for major building works that occur infrequently but are costly. Unlike admin fund expenses, capital works are not expected every year — but they are inevitable. Every building will eventually need a new roof, repainted exterior, or lift upgrade.
Most states require owners corporations to prepare a 10-year capital works plan that forecasts these major expenses and sets a levy schedule to accumulate enough funds by the time each item is needed. A well-funded capital works account is a sign of a well-managed strata scheme.
Common capital works expenses
| Expense | Description | Typical Cost |
|---|---|---|
| Roof replacement | Repair or replacement of building roofs | $50,000 – $300,000 |
| Lift modernisation | Major lift repairs or upgrades | $100,000 – $400,000 per lift |
| Exterior painting | Painting of the building façade | $50,000 – $250,000 |
| Waterproofing repairs | Balcony and structural waterproofing | $20,000 – $200,000 |
| Structural repairs | Concrete, façade, or balcony repairs | $50,000 – $500,000+ |
Costs are indicative totals for a medium-sized residential building. Actual costs vary significantly by building size, materials, and location.
Building insurance
Building insurance is one of the most significant components of strata fees. Owners corporations are legally required to hold building insurance that covers the full replacement value of the building. This is funded through the admin fund and shared among all lot owners.
A standard strata building insurance policy typically covers:
- Building structure: walls, roof, floors, windows, and fixed fixtures
- Common areas: lobbies, hallways, car parks, gardens, and shared facilities
- Public liability: injuries or property damage occurring on common property
- Common property improvements: fixtures and fittings in common areas
Building insurance does not cover lot owners' contents or internal improvements made by individual owners — those are the owner's own responsibility.
Amenities and shared facilities
Buildings with shared facilities have higher strata fees because those facilities add ongoing costs to the admin fund. Common amenities that increase levies include:
- Swimming pool: chemicals, heating, cleaning, maintenance, and compliance inspections
- Gym / fitness centre: equipment maintenance, insurance, and cleaning
- Concierge / security: staffing costs (often the largest single amenity expense)
- Lift: service contracts, compliance inspections, and eventual modernisation
- BBQ areas / rooftop terraces: cleaning, maintenance, and utility costs
- Car wash bay / EV charging: utilities and maintenance
Special levies
A special levy is a one-off charge raised by the owners corporation when the admin fund or capital works fund does not have sufficient funds to cover an unexpected or unplanned expense. Special levies require approval at a general meeting and are in addition to normal quarterly levies.
Common triggers for special levies include:
- Emergency repairs: storm damage, fire damage, or sudden structural failures — e.g. $50,000 – $300,000
- Underfunded capital works: when the capital works fund was not built up sufficiently and major works are due — e.g. $5,000 – $50,000 per lot
- Insurance premium increases: large year-on-year insurance cost rises that exceed the budgeted amount
- Defect rectification: construction defects in newer buildings that require remediation work
Regularly reviewing your building's financial statements and capital works plan is the best way to anticipate whether a special levy might be coming.
State terminology: strata vs body corporate
The same concepts apply across Australia, but the terminology differs by state:
- NSW, ACT, WA: strata scheme, owners corporation, strata levies (admin fund + capital works fund)
- Victoria: owners corporation, owners corporation fees (maintenance fund + capital works fund)
- Queensland: body corporate, community titles scheme, body corporate fees (administrative fund + sinking fund)
Despite the different names, the underlying structure — two funds, mandatory insurance, unit entitlement-based contributions, and an annual general meeting to set the budget — is consistent across all states.
Frequently asked questions
Related guides
How Are Strata Fees Calculated? →
Understand unit entitlements, levy formulas, and how your share is worked out.
Average Strata Fees in Australia →
See typical levy ranges by state, property type, and building size.
Strata Fees in Sydney →
Sydney benchmarks for apartments, townhouses, and luxury buildings.
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