How do owners corporation fees and levies work in Victoria?

Owners corporation fees — often called levies or contributions — are how Melbourne and regional Victorian schemes fund insurance, gardening, cleaning, repairs, admin, and long-term maintenance. They are not optional “suggestions”; they are the financial engine that lets the corporation meet legal duties under the Owners Corporations Act 2006.

This guide explains how fees are set, split, collected, and challenged, using Consumer Affairs Victoria’s fees page and related finance guidance. It is general information, not tax or legal advice. Your plan of subdivision, tier, and registered rules can change the detail — confirm before you invoice owners.

Model your per-lot impact with our owners corporation fee calculator, then read the Victorian self-managed strata hub for meetings, records, and disputes.

Annual fees and the budget cycle

CAV states that annual fees cover administration, maintenance, insurance, and other ongoing costs. Before each financial year, the committee (or its delegate) estimates those costs — including contributions to any maintenance fund — and sends a proposed budget with the AGM notice.

Owners approve annual fees at the AGM. Until that happens, committees should avoid committing to large contracts beyond what prior budgets clearly cover.

Good budgets separate recurring admin, routine maintenance, insurance, and planned capital items. Owners read transparency — a single “general” line invites suspicion.

Lot liability: who pays what

Annual fees are charged according to lot liability on the plan of subdivision unless your rules provide otherwise within what the Act allows. CAV’s fees page points to definitions of lot liability and lot entitlement — liability drives most fee splits; entitlement often drives voting weight.

Mixed-use schemes — retail below apartments — need extra care so commercial lots fund lift and services fairly. Document the methodology in the AGM budget note.

Two-lot schemes may share costs informally but still need accurate certificate information when selling — see our two-lot guide.

Special fees and unplanned work

When urgent works exceed the budget, corporations may levy special fees or seek separate approval at a general meeting. Owners should receive clear scopes, quotes, and payment timing — not a surprise email after the contractor starts.

Emergency works still need a paper trail: committee authorisation within delegations, or a convened meeting if required. Photos and invoices belong in the records folder immediately.

Fee notices and collecting arrears

Larger schemes must use approved notice forms to collect fees. CAV’s fees page describes annual and special fee processes. Keep proof of delivery — email read receipts, registered post, or portal publication logs.

Arrears affect voting rights on ordinary resolutions at general meetings. Committees should pursue debt consistently and document payment plans in writing. We do not summarise penalty interest caps here — check current CAV and Act provisions with your adviser.

Maintenance funds and long-term levies

If your corporation has a maintenance plan, it should also maintain a maintenance fund. CAV explains that owners decide what portion of annual fees flows to the fund and how instalments are due — often quarterly alongside ordinary levies.

Our maintenance plan article explains how ten-year capital forecasts translate into today's contributions.

Financial statements owners should see

At each AGM, corporations present financial statements summarising income, expenditure, assets, liabilities, and penalty interest charged. Tier and audit rules vary — see financial management and our tiers guide.

Treasurers should reconcile bank feeds monthly. Year-end surprises usually mean twelve small drifts nobody tracked.

Insurance and fees

Building and public liability premiums land in the admin budget. When sums insured change, explain the broker’s rationale in the AGM pack — link to our insurance guide.

Practical levy schedules in StrataBody

Once owners approve the budget, enter charge types, due dates, and lot liability splits in your levy schedule. Pro features align warnings when splits look inconsistent with Victorian liability expectations.

Publish owner statements through the portal so arrears conversations reference the same numbers everyone sees online.

Fees vs manager costs for self-managed schemes

Self-managed committees save manager fees but still pay for insurance, compliance, accounting, and their own time. Compare those real costs to StrataBody subscription pricing — software is usually far less than a full manager retainer.

StrataBody launch offer: $29/mo Essentials or $45/mo Pro, locked in for life for the first 50 paid schemes. Standard price: $49/$69. No GST. Compare plans on pricing.

Disputes over fees

Fee disputes often escalate to internal complaints and then external resolution. Follow CAV’s process in our disputes guide before threats of VCAT.

Quarterly instalments and cash flow

Many corporations split annual fees into quarterly instalments to match owner cash flow. CAV notes corporations decide timing when levying maintenance fund contributions too. Align due dates with mortgage cycles where you can — it reduces avoidable arrears.

Treasurers should publish a simple calendar: notice date, due date, and grace policy if the corporation adopts one in its rules. Ambiguity causes more arguments than the dollar amounts themselves.

Manager fees vs actual levies

Self-managed committees sometimes forget to budget their own costs: accounting, audit, essential safety measures, lift contracts, and software. When comparing past manager quotes to DIY levies, include every line the manager previously hid inside a single admin fee.

GST and tax treatment

We do not provide tax advice and do not summarise deductibility rules here. Ask your accountant how levies appear in your personal tax position if you invest — focus committee energy on lawful notices and accurate statements instead.

Worked example: mid-rise Melbourne scheme

Imagine a 24-lot building in Footscray with rising insurance and a lift maintenance quote. The committee drafts a budget with three sections: admin, routine maintenance, and lift reserve contributions tied to the maintenance plan. The AGM notice includes broker and lift reports, not just totals. Owners approve fees split by lot liability; the treasurer loads due dates into StrataBody the next day.

If one owner sells mid-year, conveyancers apportion fees using certificate dates — another reason to keep ledgers current.

Records that survive treasurer handover

Bank statements, levy registers, and fee notices must be kept for the periods CAV describes on its records page. Volunteer turnover is inevitable; searchable records prevent the new treasurer from rebuilding history from Gmail.

Certificates and fee accuracy

Owners corporation certificates must state current fees, amounts paid, and unpaid charges for the lot. Incorrect certificate data delays sales and can expose the corporation to claims — tie certificate numbers directly to your levy ledger each month.

Borrowing and special resolutions

Major funding may require owner votes beyond the annual budget. When in doubt, pause spending until your lawyer confirms the resolution type required — fee disputes often start when committees skip that step.

Using technology to reduce arrears

Portal reminders, automated statements, and visible payment history reduce awkward conversations. StrataBody shows owners the same balance treasurers see, which keeps disputes factual.

Aligning fee notices with the AGM pack

The figures owners approve in the meeting should match the first notices issued afterward. If the AGM adjusts a line item during debate, reissue the budget summary before invoicing so nobody can claim they voted for a different number.