What are strata fees?

Strata fees, usually called levies, are compulsory contributions paid by every owner in a strata scheme. That covers apartments, units, villas, townhouses and some duplexes.

The money is paid to the owners corporation, which is made up of all the owners in the scheme. The owners corporation sets the budget at its annual general meeting, and levies are then raised against each lot. Most NSW schemes collect them quarterly, although a scheme can choose a different schedule.

Unpaid levies stay with the lot, not the person. If the seller is behind, that debt can follow the property to you, which is why your conveyancer checks the levy position and adjusts for it at settlement.

The three types of strata levies

Why are some strata fees so high?

Your share of the levies is set by your lot’s unit entitlement, a figure recorded on the strata plan that broadly reflects the lot’s value relative to the others. A larger or higher value lot pays a bigger share.

Beyond that, levies vary a lot from building to building. The main drivers are:

• Facilities such as lifts, pools, gyms and security systems
• The size of the scheme and how many lots share the costs
• The age and condition of the building
• Building insurance, which every scheme must hold and which has risen sharply in recent years
• Known defects or major works that the owners are saving for
• How well the scheme has been managed and budgeted in the past

A small walk up block with no lift will usually have far lower levies than a large complex with a pool and concierge. The better question isn’t whether the levies are high or low. It’s whether they’re realistic for that building.

What changed in NSW strata law in 2025 and 2026

NSW has been rolling out strata reforms in stages, with changes starting on 1 July 2025, 27 October 2025 and 1 April 2026. The ones that matter most to buyers are:

• Standard form capital works plans. From 1 April 2026, any new or reviewed 10 year capital works fund plan must use the government’s standard form, which makes plans easier to compare between buildings. Plans must be formally reviewed at least every five years.
• Checks on developer levy estimates. For new multi storey schemes, an independent surveyor must now certify that the developer’s initial maintenance schedule and levy estimates are realistic before the first AGM.
• An updated Section 184 certificate. The approved form was updated in March 2026 and now asks whether the scheme has an embedded (exclusive supply) electricity network.
• Payment plans for overdue levies. Owners can request a plan of up to 12 months, and levy notices now include financial hardship information.
• Stronger enforcement. NSW Fair Trading has more power to act where an owners corporation isn’t maintaining common property.

Mandatory training for strata committee members has also been legislated, but it doesn’t have a confirmed start date yet.

Buying new or off the plan?

Developers have always had a reason to set initial levies low, because low levies make apartments look cheaper. Owners have often inherited an underfunded scheme and a sharp levy increase after the first AGM.

The independent certification rules help, but they only apply to new multi storey schemes holding their first AGM from 1 April 2026. For anything else, treat a developer’s levy estimate as exactly that: an estimate. Ask what the building will actually cost to run once the honeymoon period ends.

What to check before you buy a strata property

In NSW, most buyers get a strata report from a strata inspection company. It summarises the owners corporation’s records, including levies, fund balances, insurance, by-laws and meeting minutes. The selling agent sometimes has one available, otherwise we can arrange it for you.

With the report in hand, work through these questions:

• Is the scheme financially healthy? Compare the capital works fund balance against what the 10 year plan says the building will need.
• Are any special levies coming? Look for levies already raised, and for works being discussed in the minutes that haven’t been funded yet.
• Are there defects or building works? Check for defect reports, council or Fair Trading orders, and disputes with builders.
• Is the building properly insured? Confirm the policy is current and the sum insured looks adequate.
• What rules will you live by? Read the by-laws on pets, renovations, parking and short term letting.
• Is there an embedded network? If so, you may not be able to choose your own electricity retailer.
• Do the owners get along? Long running disputes in the minutes can signal a building that struggles to make decisions.

Pay attention to what’s missing as well. If the report can’t find a capital works fund plan, recent minutes or an insurance policy, ask why.

When to look at the strata report

Ideally before you exchange contracts. If that isn’t possible, use your cooling-off period, which is 5 business days for most NSW residential sales. Once cooling-off ends, problems in the strata records are far harder and more expensive to walk away from.

Before settlement, we obtain an up to date Section 184 certificate so the levies are correctly adjusted between you and the seller, and any arrears are dealt with before the property becomes yours.

The short version

Strata fees pay for running and maintaining your building, and your share depends on your unit entitlement. Don’t judge a building by how low its levies are. Check the capital works fund, the minutes and the Section 184 certificate, and do it before you’re locked in.