Special Levies: What Queensland Lot Owners Need to Know

What Is a Special Levy?

A special levy is a one-off contribution levied on all lot owners in a body corporate scheme, over and above the regular quarterly levies. Unlike the normal administrative and sinking fund levies set at the Annual General Meeting (AGM), a special levy is raised in response to a specific need — usually unexpected expenditure that the existing funds cannot cover.

Common reasons for special levies include:

Emergency structural repairs after storm or flood damage
An insurance shortfall following a major claim
Remediation of building defects not anticipated in the sinking fund forecast
Legal costs from a significant dispute
Replacement of major plant (lifts, pool equipment) earlier than forecast

Who Can Raise a Special Levy?

This is a common point of confusion. The committee cannot raise a special levy on its own authority. A special levy must be approved by the lot owners at a general meeting — an ordinary resolution (more votes for than against) is sufficient in most cases.

The committee calls the meeting, presents the circumstances and the amount required, and owners vote. If the resolution passes, the levy is raised and notices are issued to all owners.

The only exception is a genuine emergency — where the committee needs to act immediately to prevent serious damage or injury and cannot wait for a meeting. In that case the committee can authorise the emergency expenditure, but must report it to owners as soon as practicable.

How Much Notice Will I Get?

A general meeting requires at least 21 days' notice. The notice must include the reason for the special levy, the amount, the proposed payment terms, and a voting paper.

In urgent circumstances some module regulations allow a shorter notice period, but only with the agreement of all owners — which is rarely practical.

Special levies are usually payable in one lump sum or in instalments over a short period. The payment terms are part of the motion voted on at the meeting.

Can I Vote Against It?

Yes. All lot owners are entitled to attend and vote at the general meeting. If the ordinary resolution is defeated (more votes against than for), the levy cannot be raised.

However, if it passes, all owners are legally bound to pay — even those who voted against. Refusing to pay a lawfully approved special levy will result in interest accruing (up to 2.5% per month) and debt recovery action.

Can I Challenge a Special Levy?

You can challenge a special levy if you believe the meeting was not properly called, the wrong resolution type was used, or the levy was raised for an improper purpose. Applications to the Commissioner for Body Corporate and Community Management can seek to have an unlawfully raised levy set aside.

What you cannot do is refuse to pay on the grounds that you simply disagree with the expenditure, if the resolution was properly passed.

How to Protect Yourself

The best protection against surprise special levies is staying engaged:

Attend the AGM and review the sinking fund forecast carefully
Ask questions if the sinking fund balance looks low relative to upcoming expenditure
Review the committee's insurance valuation — underinsurance is one of the most common causes of special levies after a major event
Read the AGM minutes even if you cannot attend

A special levy is almost always the result of either poor planning or an unforeseeable event. Understanding which it is tells you a lot about how well your scheme is being managed.

This article is general information only and does not constitute legal advice. For complex levy matters, consult a strata lawyer or the Office of the Commissioner for Body Corporate and Community Management.