Special levies explained in plain English
What a special levy is, who approves it, how contributions are calculated and what information owners should receive.
A special levy raises additional money when the administrative or capital works fund is insufficient. It is determined by the owners corporation at a general meeting and contributions are generally based on unit entitlement. A sound proposal explains the purpose, amount, timing, evidence and impact on owners.
Think before you act.
1. Confirm the funding gap
Check the approved budget, current fund balance, committed expenditure and capital works plan. Identify why existing funds are insufficient.
2. Define the work and amount
Use a clear scope, appropriate reports and comparable quotes. Explain any contingency.
3. Prepare the owner decision
Set out the levy amount, purpose, fund, due dates and contribution basis in the meeting material. Explain alternatives and consequences of delay where relevant.
4. Plan fair communication
Give owners usable notice and context. Consider instalments where practical, without obscuring the scheme's cash-flow needs.
5. Track restricted use
After approval, account for the levy in the correct fund, monitor expenditure against its purpose and report material changes.
Watch for
- Choosing the amount before defining the scope
- Ignoring cash-flow dates
- Assuming every lot pays the same amount
- Using funds for a different purpose without checking authority
Escalate when
- The contribution calculation is disputed
- The levy funds major or regulated building work
- Borrowing or another funding arrangement is proposed
- Hardship or debt recovery requires careful handling
Source-controlled learning
Reviewed against the following current official material on 24 August 2026. Open the source to check the latest version before relying on it.
Knowing the check is useful. Practising the judgement is better.
Join the complimentary founding launch for complete learning pathways, real scenarios, tools, assessments and your personal learning record.