Strata Fees Explained: What You’re Really Paying For

If you’re new to strata living, one of the biggest mysteries is where your money actually goes. When you receive your levy notice, you might wonder: What are my levies paying for? And more importantly, how much is the strata management company actually paid, and for what? These are two very different questions, and we’ll break them down so you can better understand your strata fees.

What Are Your Levies Paying For?

The easiest way to find out is by checking your budget and financial statements. These documents outline exactly where your money is allocated and can usually be found in your Annual General Meeting (AGM) agenda or through your online portal if your strata has one.

Your levies typically cover:

• Building maintenance & repairs – Keeping the common areas in good condition.

• Utilities – Shared costs like water, electricity for common areas, and sometimes gas.

• Insurance – Covers the building and common property.

• Sinking fund contributions – Savings for future major works.

• Administrative costs – General running costs like postage, compliance fees, and other expenses.

What Is Your Strata Manager Paid For?

To find out how much your strata management company is paid and what they do for that money, start by reviewing your budget. Look for the line items related to strata management fees. These fees often include:

• Base management fee – The agreed amount for handling administration, meetings, and record-keeping.

• Additional service charges – Some tasks, like insurance claims, major works coordination, or additional meetings, may come with extra fees.

• Disbursements – Charges for things like postage, printing, or software access.

If you want a more detailed breakdown, you can request a financial report from your strata manager. This will show exactly what was charged and why.

The Hidden Fee: Insurance Commission

One fee that often isn’t obvious is the insurance commission. Strata managers sometimes receive commissions from insurance providers when arranging policies for the building. This is legally required to be disclosed, so you can ask your strata manager for a full disclosure of insurance commissions and any other commissions they receive.