Strata fees
Regular levies paid by apartment and townhouse owners to maintain shared property and build a sinking fund.
Owners in a strata scheme contribute to two funds. The administrative fund covers day-to-day running costs such as insurance, cleaning, and gardening. The sinking or capital works fund saves for major future expenses like painting, roofing, or lift replacement.
Levies are set by the owners corporation and typically billed quarterly. They vary enormously with building amenities — a complex with a pool, gym, lifts and concierge costs far more to run than a small block of six units.
For investors, strata fees are fully deductible against rental income. For owner-occupiers they are simply a cost of living in the building, and they are permanent in a way mortgage repayments are not.
The cost that never ends
Quarterly levies of $1,400 total $5,600 a year. Against a $520 weekly rent of $27,040, strata alone consumes roughly a fifth of the gross rent before any other expense is counted.
The bit people get wrong
A suspiciously low levy is a warning, not a bargain. It often means the sinking fund is underfunded, and buyers can face a special levy of tens of thousands when major works finally become unavoidable.
Common questions
Are strata fees tax deductible?
For an investment property, yes — both administrative and sinking fund contributions are generally deductible. For your own home they are not.
What is a special levy?
A one-off charge raised when the sinking fund cannot cover necessary works. They can run to tens of thousands per lot for major structural or cladding remediation.
How do I check a building's financial health before buying?
Order a strata search. It reveals the fund balances, planned works, insurance status, past special levies, and any building defect disputes.