What is a special levy and when is it raised?

If you own a property in a strata scheme, you’re probably familiar with quarterly levies (or “strata fees”) that help cover the day-to-day running of the building. But sometimes, those regular contributions just aren’t enough to cover unexpected or major expenses. That’s where a special levy comes in.

What is a special Levy?

A special levy is an extra contribution that owners in a strata scheme are asked to pay, on top of their usual levies. Think of it as a “top-up fund” for costs that weren’t planned for in the annual budget.

The amount each owner pays is based on their unit entitlement, which is the same method used for normal levies. This ensures contributions are divided fairly.

Why would a special levy be raised?

Special levies are typically raised when big or unforeseen expenses come up. Common examples include:

• Major repairs (e.g. roof leaks, structural issues, fire safety upgrades).

• Urgent works following damage (e.g. storm or flooding damage not fully covered by insurance).

• Legal costs (such as disputes with contractors or compliance issues).

• Large improvement projects that weren’t budgeted for.

How is a special levy approved?

A special levy can only be raised if it’s approved at a general meeting of the owners corporation. The motion must be put forward, discussed, and then passed by the required majority vote.

Once approved, owners will be notified of how much they need to pay and by when. Payment timelines can sometimes be staged, depending on the expense.

Are special levies common?

They’re not unusual—especially in older buildings or schemes that don’t have well-funded capital works funds. A healthy sinking fund (or capital works fund) can reduce the need for special levies, but sometimes unexpected costs still pop up.

Key takeaway

A special levy isn’t something most owners love to see, but it’s an important tool to keep your building safe, compliant, and well-maintained. If you receive notice of a special levy, it’s worth asking your strata manager for a breakdown of the costs and whether the works could have been covered by the sinking fund in the future.