Strata fees, also commonly referred to as body corporate or owners corporation fees, are one of the most commonly discussed aspects of community living.
These regular contributions are paid by lot owners to support shared financial responsibilities across a property. They help fund the ongoing management, maintenance, and longer‑term planning of common property, including buildings, shared services, and areas used collectively by owners and residents.
Questions about strata fees often arise when reviewing budgets, comparing buildings, or trying to understand what fees cover and why they may vary. While terminology, fund structures, and processes differ between states and territories, the purpose of strata fees remains broadly consistent across Australia.
This article explains how strata fees typically work, what they commonly include, and how budgeting and planning decisions can influence costs over time.
For the purpose of this article, strata fees are used as a practical umbrella term. Depending on the state or territory, these fees may be referred to as body corporate contributions or owners corporation fees, and may be paid into different funds. Checking local legislation or government guidance can help confirm which terms apply to a specific scheme.
In community living, ownership is divided between individual lots and common property. Common property generally includes shared areas and assets that are not part of a single lot, such as entry areas, hallways, lifts, stairwells, roofs, external walls, gardens, shared services, and building infrastructure.
The exact definition of common property is set out in the registered plan for the scheme and can vary between states.
Because common property is owned collectively, the costs associated with operating, maintaining, and repairing it are also shared. Strata fees provide a structured way to collect and manage these shared costs. Rather than individual owners arranging works or payments separately, contributions are pooled and applied in line with approved budgets and decisions of the owners corporation or body corporate.
Strata fees are influenced by more than size or location. They can reflect a scheme’s maintenance planning, insurance profile, level of shared facilities, and approach to future works.
Strata fees are usually set as part of an annual budgeting process and shared among owners in accordance with agreed ownership proportions. While the overall approach is similar across Australia, the process and terminology are governed by state‑based strata legislation.
In the Northern Territory, the process for setting and collecting strata fees is outlined in the Unit Titles Act 1975 and the Unit Title Schemes Act 2009. Bodies corporate prepare budgets to cover the costs of managing and maintaining common property, with contributions raised from lot owners to fund these expenses. How fees are shared between lots is generally informed by unit entitlements recorded on the registered plan.
In New South Wales, strata fees are set through the budgeting and levy processes established under the Strata Schemes Management Act 2015. Owners corporations prepare annual budgets and approve levies at general meetings, with contributions typically allocated according to unit entitlements recorded on the strata plan.
NSW Government guidance explains how levies are calculated, approved, and paid into administrative and capital works funds.
In Queensland, body corporate fees are set under the Body Corporate and Community Management Act 1997 and associated regulation modules. Budgets for administrative and sinking funds are prepared for consideration at annual general meetings, with levies collected from lot owners to meet anticipated expenditure.
The Queensland Government provides detailed guidance on budgeting and levy setting for body corporates.
In Tasmania, the process for setting and sharing strata fees sits within the framework of the Strata Titles Act 1998. Bodies corporate raise contributions from owners to meet shared expenses for the administration, maintenance, and management of common property.
In Victoria, owners corporation fees are set and shared under the Owners Corporations Act 2006. Owners corporations prepare annual budgets that cover administration, maintenance, insurance, and other shared expenses, with fees typically allocated based on lot liability.
Consumer Affairs Victoria provides practical guidance on how fees are calculated, approved, and managed.
When reviewing strata fees, owners often ask how these contributions relate to other property costs and how funds are managed within the scheme.
Council rates are usually issued by local councils to individual lot owners and are paid separately. Strata fees are generally used for costs associated with shared property and scheme operations, rather than charges linked to individual lots.
Because rating structures and billing practices vary by council and state, owners may wish to check their individual notices for clarity.
Strata fees often include contributions toward building insurance that covers common property and shared structures. This insurance typically relates to the building itself rather than personal contents or lot‑specific risks.
Cover for within a lot is usually arranged separately by owners.
Strata fees are collected on behalf of the owners corporation or body corporate and held to meet agreed scheme expenses. A strata, owners corporation, or body corporate manager may assist with issuing fee notices, collecting payments, and administering accounts.
Expenditure is applied in line with approved budgets and resolutions, following governance and record‑keeping requirements set out in legislation.
In the Northern Territory, maintenance and financial planning are governed by the Unit Titles Act 1975 and the Unit Title Schemes Act 2009. The legislation establishes how body corporates manage common property and raise contributions, while allowing schemes to determine their approach to future maintenance based on their size, complexity, and needs.
In New South Wales, strata maintenance planning is governed by the Strata Schemes Management Act 2015, supported by the Strata Schemes Management Regulation 2016. Owners corporations plan for longer‑term maintenance and replacement of common property through capital works funds, using capital works plans to help inform future budgets and contributions.
Body corporates prepare sinking fund or equivalent forecasts to anticipate future expenditure on major assets and shared property. Queensland legislation addresses future maintenance through sinking funds under the Body Corporate and Community Management Act 1997. Body corporates generally prepare sinking fund budgets that anticipate expenditure on major capital items and common property.
In Tasmania, maintenance and repair responsibilities are outlined in the Strata Titles Act 1998. The Act sets out the general functions of a body corporate, including managing and maintaining common property, keeping it in good condition and serviceable repair, and maintaining required insurance.
The legislation takes a broad approach, which means the way maintenance and repairs are planned and funded can vary across schemes. These decisions are typically shaped by the size, age and needs of the property, and are considered through the body corporate’s budgeting and decision‑making processes.
Victoria’s framework for maintenance planning is set out in the Owners Corporations Act 2006. Depending on the size and tier of the owners corporation, legislation outlines when maintenance plans and maintenance funds apply, and how future repairs and replacement of common property may be planned. Consumer Affairs Victoria provides detailed guidance on maintenance plans and funds.
The way maintenance is planned can influence how predictable strata fees feel over time. Early planning allows future costs to be spread over time, while limited planning can result in higher or less predictable contributions when major repairs are needed.
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Strata fees play an important role in how shared property is managed, maintained, and planned over time. They support everyday operations, building insurance, and longer‑term maintenance, while providing a structured way for owners to collectively fund and oversee common property.
Although terminology, fund structures, and legislative frameworks vary between states and territories, the underlying purpose of strata, owners corporation, and body corporate fees remains broadly consistent. Fees reflect shared ownership and collective decision‑making, with costs distributed in line with approved budgets, entitlements, and planning approaches.
Having a clearer understanding of what strata fees are, what they commonly include, and how they relate to budgeting and maintenance planning can help owners better interpret fee notices, participate in discussions, and engage more confidently in decisions about the long‑term management of their property.
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This article is edited by Lauren Shaw Regional General Manager and Licensee-in-Charge on May 2026.
