What are body corporate levies?

Levies (also called contributions) are the regular payments lot owners must make to fund the running of the body corporate scheme. There are two separate levies: the administrative fund levy, which covers day-to-day expenses, and the sinking fund levy, which builds up long-term savings for major works. The amounts are set at the Annual General Meeting when the committee presents its budget for the coming year. Your levy amount is calculated in proportion to your lot entitlement, which is set out in the community management statement — a lot with a higher entitlement pays a larger share. Levies are usually paid quarterly and are a legal obligation on all lot owners.