How to calculate and issue strata levies in NSW

Levies are how a strata scheme funds itself — and setting and issuing them correctly is the treasurer’s most important recurring job. Get the budget, the apportionment and the notice right and the money comes in cleanly; get them wrong and you face disputes, cash-flow gaps and challenges. Here is how it works in NSW.

What strata levies are

Strata levies (formally, contributions) are the payments owners make to fund the scheme’s two funds — the administrative fund for day-to-day running costs and the capital works fund for major works. Every owner pays a share of the budget the owners corporation approves.

Levies start with the budget, set at the AGM

Levies are not invented by the treasurer or set by a manager — they flow from a budget the owners approve. At the annual general meeting, the owners corporation estimates what each fund needs for the year ahead (section 79) and approves it by majority vote. That approved budget is the total to be collected; the levies simply divide it among the owners.

Each lot’s share = unit entitlement

Each lot’s share is set by its unit entitlement, recorded on the registered strata plan (section 83). Unit entitlements are fixed at registration by a qualified valuer and usually reflect each lot’s relative size or value — larger or more valuable lots pay more. For example, if a scheme’s total unit entitlement is 100 and your lot’s entitlement is 40, you pay 40% of each levy. To work out a lot’s levy: take the approved fund budget, divide by the total unit entitlement, then multiply by the lot’s entitlement.

Issuing the levy notice

Once levies are set, you issue a written levy notice to each owner. Owners must be given at least 30 days to pay, and most schemes issue notices quarterly, in advance. Since the 2025 reforms, every levy notice must now be accompanied by a Financial Hardship Information Statement, so an owner who is struggling knows help exists. Keep proof of when and how each notice went out.

Special levies

When a cost arises that the approved budget does not cover — an unexpected major repair, say — the owners corporation can raise a special levy at a general meeting. It is apportioned by unit entitlement just like ordinary levies, and the same notice rules apply.

When a levy isn’t paid

A contribution is overdue the day after its due date, and an owner with overdue levies becomes “unfinancial” — losing the right to vote on most motions. If a levy stays unpaid for one month after the due date, interest accrues at 10% per year under section 85 (the owners corporation can resolve to charge less, or none). Unpaid levies, interest and reasonable recovery costs can be recovered as a debt under section 86.

Hardship and payment plans

The law balances recovery with support. An owners corporation and an owner can agree to a payment plan for overdue levies, generally up to 12 months (section 85). Critically, since the 2025 reforms a scheme cannot pass a blanket resolution refusing payment plans — each request must be considered, though it can be reasonably refused in a particular case. That is why the hardship statement now travels with every notice.

Issuing levies, step by step

1. Adopt the budget for both funds at the AGM.
2. Divide each fund’s total by the scheme’s total unit entitlement.
3. Multiply by each lot’s entitlement to get its share.
4. Split into instalments (quarterly is typical).
5. Issue each owner a written notice at least 30 days before the due date, with the Financial Hardship Information Statement attached.
6. Record who has paid, and follow up arrears fairly — offering a payment plan where appropriate.

Doing it the easy way with OneStrata

• Per-lot levies, calculated for you. Enter the budget and OneStrata apportions each lot’s share by unit entitlement automatically — no spreadsheet formulas to get wrong.
• Quarterly, on time. Issue levies on a schedule and keep a record of what went out and when.
• See who has paid at a glance. Each lot’s payment status is tracked, so arrears are visible the moment they happen — not discovered months later.
• Owners see their own levies. Through the resident portal, each owner can see their levies and balance — fewer “I didn’t know I owed that” disputes.
• Straight into the budget. Levy income feeds your budget’s projected-versus-actual view, so you always know where the scheme stands.

Calculating and chasing levies by hand is where small errors and awkward conversations creep in. OneStrata turns it into a few clicks and a clear record.

Levy checklist

• Adopt the administrative and capital works budgets at the AGM
• Calculate each lot’s share from its unit entitlement
• Decide the instalments (quarterly is standard)
• Issue written notices at least 30 days before the due date
• Attach the Financial Hardship Information Statement to every notice
• Keep proof of when and how notices were sent
• Track payments and identify arrears promptly
• Offer a payment plan where an owner requests one; do not refuse as a blanket rule
• Apply 10% interest on levies over a month overdue (unless waived)

This guide is general information for NSW strata committees, not legal, financial or tax advice. Levies and contributions are governed by the Strata Schemes Management Act 2015 (including sections 79, 83, 85 and 86) and were affected by the 2025 strata reforms (notably the Financial Hardship Information Statement on every levy notice); always confirm the current requirements for your scheme with NSW Fair Trading (nsw.gov.au). OneStrata is record-keeping and management software for small to medium size strata schemes; it is not a licensed strata managing agent and never holds your funds.

Frequently asked questions