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.
What you need to know
- A special levy is an owners corporation decision at a general meeting, not an informal committee approval.
- The proposal should connect the amount and due dates to a defined scope, fund, cash-flow need and supporting evidence.
- Contributions are generally calculated by unit entitlement; equal amounts per lot should not be assumed without a lawful basis.
Explain the funding gap before proposing the levy.
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
Clear answers before you act
Can the strata committee approve a special levy?
No. A special levy must be determined by the owners corporation at a general meeting using the applicable statutory process.
Does every lot pay the same amount?
Generally no. Levy contributions are ordinarily based on unit entitlement. Check the motion, contribution schedule, registered unit entitlements and any applicable statutory exception.
Can owners be offered instalments or a payment plan?
The levy must still meet the scheme's real cash-flow requirements. Any instalment structure or payment plan should be documented and handled consistently with the legislation, the approved resolution and the owner's circumstances.
Source-controlled learning
Reviewed against the following current official material on 30 August 2026. Open the source to check the latest version before relying on it.
Knowing the check is useful. Practising the judgement is better.
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