Written by

Steven Lee

Mortgage Director, ODIN Mortgage & Tax

10+ years in Australian banking and mortgage lending

Last reviewed

Updated on: July 20, 2026 View profile →

What Are Body Corporate Fees and Strata Levies, and Are They Actually the Same Thing?

Body corporate fees and strata levies are the same financial obligation under different names. The terminology shifts by state, but the obligation is identical: all lot owners must pay regular levies to fund the management, maintenance, and insurance of shared property [stratafeecalculator.com.au].

Understanding this early matters because a lot of expats waste time researching “strata fees vs body corporate fees” as if they represent two separate costs. They do not. What does vary by state is the governing legislation and the name of the entity collecting the fees:

| State/Territory | Name of the Body | Governing Legislation |
|—|—|—|
| New South Wales | Owners Corporation / Strata Scheme | Strata Schemes Management Act 2015 |
| Victoria | Owners Corporation | Owners Corporations Act 2006 [consumer.vic.gov.au] |
| Queensland | Body Corporate | Body Corporate and Community Management Act 1997 [publications.qld.gov.au] |
| South Australia | Strata Corporation | Strata Titles Act 1988 [stratadata.com.au] |
| Western Australia | Strata Company | Strata Titles Act 1985 |

The name on your levy notice changes. The financial obligation does not.

What Does the Body Corporate Sinking Fund Actually Pay For?

Building on the levy structure above, the more consequential fund for long-term owners is the body corporate sinking fund. This is a capital reserve collected to pay for major future expenditure: roof replacement, lift refurbishment, facade repairs, pool resurfacing, and other works that are too large to fund from the administrative (day-to-day) levy [ourbodycorp.com.au].

Think of it like the engine maintenance reserve on a commercial aircraft. Day-to-day fuel and cabin cleaning come from the operating budget. Engine overhauls are pre-funded over years before they are needed. The sinking fund works the same way: owners contribute now so the scheme is not forced to issue a special levy when a large repair eventually arrives.

Key points expats need to review in the sinking fund report before purchase:

– **Current balance:** Is the fund adequately funded relative to the 10-year capital works plan?
– **Projected contributions:** Will your quarterly levy increase significantly to meet funding targets?
– **Upcoming major works:** Any approved or planned capital projects will draw down the fund.
– **Special levies:** A special levy is issued when the sinking fund is insufficient. This is an additional, often large, one-off charge to all owners [ourbodycorp.com.au].

A well-funded sinking fund is a sign of a well-managed scheme. A depleted one is a liability you are buying into.

How Do Expat Owners Participate in Meetings and Votes Without Being There?

Stepping back from the financial mechanics, a separate practical concern is governance. Owners corporation and body corporate meetings make binding decisions about budgets, maintenance, and by-laws. An expat who cannot attend needs a reliable proxy or voting mechanism in place [consumer.vic.gov.au][publications.qld.gov.au].

Options available to remote owners, subject to state law:

– **Proxy appointment:** Nominate another person (a local property manager, a trusted contact, or another lot owner) to attend and vote on your behalf. Most state legislation explicitly permits this [publications.qld.gov.au].
– **Written/postal voting:** Many resolutions can be decided by ballot rather than in-person meeting, depending on the resolution type [flexinsurance.com.au].
– **Electronic attendance:** Some schemes permit attendance by phone or video conference. Victorian law, for example, now allows this in certain circumstances [consumer.vic.gov.au].
– **Property manager delegation:** A professional strata manager or property manager can often be granted authority to act on routine matters within parameters you set.

The practical step: when engaging your property manager or conveyancer before settlement, confirm which voting method is permitted under the relevant state legislation and register your proxy arrangements before the first AGM.

How Do Strata Levies Affect Your Australian Expat Home Loan Assessment?

Lenders treat strata levies as a committed expense when calculating serviceability for an Australian expat home loan. This is general information about how lenders assess property costs; individual borrowing power depends on personal circumstances and lender policy, which is subject to change. This is not discretionary spending in their model; it sits alongside council rates and insurance as a fixed property holding cost.

The practical implication: if you are buying a high-rise apartment with levies at the upper end of the range, that amount directly reduces the net income available to service your loan. For expats already subject to foreign income shading (where lenders apply a discount to overseas earnings), every dollar of committed outgoing carries more weight.

Levy amounts vary considerably depending on building age, size, facilities, and state. These factors are subject to individual lender policy and borrower profile assessment. Before finalising your purchase:

– Request the current levy schedule from the vendor’s strata manager.
– Confirm whether any special levies have been issued or are anticipated.
– Factor both the administrative fund contribution and the body corporate sinking fund contribution into your holding cost model.

ODIN Mortgage works with borrowers to build levy costs into the serviceability picture from the assessment stage, not as an afterthought at settlement.

What Are the Consequences of Not Paying Levies From Overseas?

Non-payment of strata levies has legal consequences that do not pause because you live in another country. The body corporate or owners corporation has the right to commence recovery proceedings against a defaulting owner, including interest on overdue amounts [ourbodycorp.com.au]. In some jurisdictions, a charge can be registered against the lot itself.

Practical steps to avoid this as a remote owner:

– Set up direct debit or automated bank transfers to cover levy payments as soon as settlement completes.
– Confirm levy payment frequency with the strata manager (quarterly is most common, but this varies).
– Ensure your Australian bank account or property manager account maintains adequate float to cover levy due dates.
– Update the body corporate with a reliable overseas contact address for notices. A levy notice sent to an Australian address you no longer check is not a valid defence against recovery action.

Frequently Asked Questions

References

1. Strata Fees vs Body Corporate Fees: What’s the Difference? (2026 Guide) | Strata Fee Calculator (stratafeecalculator.com.au)
2. Strata Levies Guide 2023 – What are Strata Levies Fees? (ourbodycorp.com.au)
3. A Guide to Strata and Body Corporate Management As a Building Resident in South Australia or Victoria (stratadata.com.au)
4. Owners corporations (formerly body corporate) – Consumer Affairs Victoria (consumer.vic.gov.au)
5. Body Corporate Rules – Owners Corporation Model >> Flex Insurance (flexinsurance.com.au)
6. Queensland Community Living: A Body Corporate Guide (publications.qld.gov.au)
7. What Are Body Corporate Fees? Costs & Coverage (2026) (bodycorporatefees.com)