Special Levies in Strata – Uses & Regulations

Strata levies are paid by all unit owners to finance the cost of upkeep for the strata property. Strata levies are regular, fixed payments that can only be changed by an ordinary resolution and if it is Community Title only at a General Meeting. 

In circumstances where urgent financing is required for the strata property, a special levy may be issued on all unit owners. 

What is a Special Levy?

A special levy is a fee that strata unit owners need to pay in addition to regular strata levies. A special levy will usually be required when the cost of an unexpected need of the strata property cannot be covered by regular strata levies or the sinking fund. 

A special levy may be imposed by the Strata Corporation by way of ordinary resolution where it relates to a strata title dwelling regulated by the Strata Titles Act 1988 (SA) and by way of general meetings, where a community title dwelling is regulated by the Community Titles Act 1996 (SA).

When Are Special Levies Required?

A special levy is typically required for major expenses due to urgent and significant works to the strata building, such as: 

• Urgent repair of an electrical failure, burst water pipe or repair of a lift;
• Installation of new amenities like a new swimming pool or gym;
• Renovations of common areas and shared facilities;
• Repairs or work to maintain existing facilities and standards according to safety legislation.

The Strata Corporation can also raise a special levy for non-essential expenses like landscaping – owners can vote for or against the proposed works. If the vote is passed, the special levy will be imposed on all owners regardless of their vote. 

The voting process can be held during a general meeting – at least 14 days’ written notice must be given to all unit holders. Votes are counted on the basis of one vote per unit.  

How Is the Amount for a Special Levy Calculated?

In South Australia, the special levy amount is calculated by unit or lot entitlement. Instead of dividing the total cost of the work/service equally across all owners, each owner’s special levy amount will be adjusted to their share of ownership in the strata property. 

As an example, a special levy for a $50,000 roof repair expense for a strata property, divided across 1000 lot entitlements, will amount to $50 per lot entitlement. This means that an owner with a lot entitlement of 100 will pay $5,000 in special levies, while another owner with a lot entitlement of 75 will pay a special levy of $3,750. 

A breakdown of the special levy fees will typically be issued by the Strata Corporation or strata management service.  

There is no statutory dollar limit for special levies.

What Strata Owners can do About Special Levies if they Disagree

Strata owners can vote against the proposed levy, but if it is passed they will still be required to pay.

If an owner disagrees with the decision, they can request (or if they have enough other owners in agreement, insist) on a new vote.  However, unless a new decision is voted on, all owners must abide by the original decision.

Finally, as a last resort, it can be raised to the Magistrates Court via an application for legal resolution.  Again, unless a new decision is made, all owners must abide by the original decision.

Guidance for Strata Corporations on Special Levies

Strata corporations are responsible for keeping all owners well-informed of the proposed works and the costs involved. Communication is essential to avoid any possible disagreements among the owners and to allow a smooth collection of the special levies.

Strata management services in South Australia can prepare documentation and communicate key information to owners on behalf of the Strata Corporation. If your strata community is undertaking major works which involve the collection of special levies, please contact our strata management team for assistance.