What are body corporate special levies?

Townhouse

Receive an
obligation-free proposal

We offer an obligation-free quote.

The first step is a short phone or in-person meeting to better understand the needs of your committee and scheme. This will only take around 10 minutes.

From there, we’ll put together a tailored proposal, including our easy-to-understand fee package.

Submit our proposal form, including the best contact time, and we’ll be in touch.

Receive an obligation
free proposal

We'll need to get some details about your building. Let us know the best time to contact you.

Receive an obligation-free proposal

We offer an obligation-free quote.

The first step is a short phone or in-person meeting to better understand the needs of your committee and scheme. This will only take around 10 minutes.

From there, we’ll put together a tailored proposal, including our easy-to-understand fee package.

Submit our proposal form, including the best contact time, and we’ll be in touch.

Receive an obligation
free proposal

We'll need to get some details about your building. Let us know the best time to contact you.

Check out our Complete Guide to Body Corporate Levies

From time to time a body corporate may be required to issue a special levy to all owners. A special levy is an additional levy issued over and above the usual administrative and sinking fund levies. It is usually issued when one of the following situations occurs when:

    1. There are insufficient funds available in the sinking fund to carry out major works, like repainting or roofing.

    2. The body corporate instigates a major improvement to the common property that is not included in the sinking fund forecast, for example the installation of a new BBQ, a gazebo area or new pool.

    3. The body corporate runs out of money.

How are special levies approved?

A special levy can only be approved at a general meeting (annual or extraordinary). It must be accompanied by a proposal or quote of the scheduled works, and a repayment schedule that includes the amounts each lot is due to pay and by what date.

Most special levies are approved by ordinary resolution however some require either a special resolution or resolution without dissent, depending on the type of work or improvement being considered.

How are special levies calculated?

Special levies are calculated the same as your administrative and sinking fund levies – they are determined by the owner’s individual contribution schedule lot entitlement (CSLE).

Special levies may be recovered in one repayment cycle or can be set out over multiple levy periods across several financial years of the body corporate. This is usually done to make the repayments more manageable.

Do I have to pay special levies?

If the motion approving a special levy is carried out at a general meeting, all owners are required by law to meet the repayment schedule of the special levy, regardless of whether you receive a direct benefit from the works being funded by the levy or not.

Remember, if you are experiencing difficulties paying special or even normal levies, speak to your body corporate manager to explore the alternatives. There may be payment plan options available.

Why are special levies issued when there is enough money in the sinking fund?

Occasionally a special levy will be issued even when there are sufficient monies in the sinking or administrative funds. Why – because the work in question won’t have been allowed for in the sinking fund forecast as mentioned earlier in this article.

For example, the current sinking fund balance is $100,000. The body corporate has allocated $20,000 for pool repairs, $10,000 for a new fence and $70,000 to resurface the driveway. If unexpected repairs on the pool rise to $30,000, the body corporate is obligated to recover the additional $10,000 via a special levy. If a special levy is not issued, the body corporate is spending sinking fund money allocated to other capital expenses which is not lawful.

Share This Post

Subscribe To Our Newsletter

Is BCsystems your current body corporate manager?
You are

More To Explore

Budgeting
Basics

The basics of body corporate budgeting

Budgeting is a crucial aspect of managing a body corporate, and the key to ensuring funds are correctly allocated to fairly meet the collective needs of all owners. In this article, we look at the basics of body corporate budgeting, including how the budgets are prepared and approved, where and how the money is spent, and what you can do if you believe the budgets and levies are excessive or not enough.

Australian Roofing Jargon
Maintenance

Understanding Australian Roofing lingo

This article looks at Australian roofing jargon to help you speak and understand the language of roofs with confidence.

Like this article?

Follow us for more