What Do Strata Levies Cover?
At each AGM, a proposed budget will be prepared by The 1888 Co. for the consideration of the owners.
At each AGM, a proposed budget will be prepared by The 1888 Co. for the consideration of the owners.
At the AGM the budget is accepted, which is done by a majority vote of the owners present at the meeting. This then determines how much money the Owners Corporation will need to raise during the next financial year in order to cover all maintenance and anticipated repair expenses to the Administrative Fund, and also how much money the Owners Corporation will raise to its Capital Works Fund.
This sum needs to be paid by the owners of the property usually in quarterly instalments and due on the dates as outlined in the minutes of the AGM.
NB: It should be noted that The 1888 Co. will always calculate the proposed Capital Works Fund Budget in accordance with the Owners Corporations Sinking Fund Forecast. The owners may decide at the meeting to amend the budget, inclusive of the Capital Works Fund.
How Are the Strata Levies Calculated?
Each owner’s portion is the total of the budget divided by the Unit Entitlements of your lot. The best way to look at this is similar to council rates in NSW, where the portion of your council rates is based on the value of the land. Unit
Entitlements work the same way in that it valued based on the value of the apartment at the completion of construction.
The budget is presented to all owners by way of the AGM notice. Those owners present personally or via proxy determine by a majority basis what the budget for the forthcoming year will be set at. The 1888 Co. then issues the levy notice for contributions due for and on behalf of the Owners Corporation.
NB: It should be noted that the Strata Managing Agent has not voting rights or power to determine the budget and subsequent levies to be struck at the AGM or other General Meeting.
