Is it wise to REDUCE levies? | Levies and Unit Entitlements | Flat Chat Forum: Your Questions Answered


These posts are now organised with the most recent post at the end. If you have already read the rest of the posts, to skip to the end, use the little bent arrow symbols to take you there. You must be registered and logged in to reply to posts or post new topics.


Please consider registering


— Forum Scope —

— Match —

— Forum Options —

Minimum search word length is 3 characters - maximum search word length is 84 characters

Register Lost password?
sp_Feed sp_PrintTopic sp_TopicIcon
Is it wise to REDUCE levies?
The Witch
Forum Posts: 3
Member Since:
sp_UserOfflineSmall Offline
23/02/2012 - 12:11 pm
sp_Permalink sp_Print

The coffers are quite healthy here at our strata of 30 because we bit the bullet a couple of years ago and put the levies up with the aim of fixing a few problems such as minor concrete cancer and OH&S issues, and because levies were way too low anyway; there wasn't much in the kitty.

Unfortunately a few inexperienced youngsters have succeeded in taking control of the Executive Committee and nothing has been done, in fact, to my mind, they are 'not maintaining the common property' according to the rules.

Now the word on the street is they want to actually reduce the levies. While that's just a rumour, I and my more experienced cohorts want to keep fees as they are, at least, or even increase them a bit (and do the work needed).

Please could someone tell me how a possible levy reduction, which is bound to be a popular suggestion, would be required to be notified in an AGM agenda or otherwise? I have read nothing about is in their Executive Committee agendas or minutes; does any discussion or formulated policy about this need to be recorded on file in our strata's books?

Thanks for reading.

Sydney NSW
Forum Posts: 107
Member Since:
sp_UserOfflineSmall Offline
28/02/2012 - 10:01 pm
sp_Permalink sp_Print

Do you have a budget for approval at the AGM, whch should show:


1. Estimate of administrative expenditure for coming 12 months


2. Funds which should be in the sinking fund to cover future needs.


3. Funds currently available.


1 + 2 – 3 = funds needed for coming year.


Personally I would not suggest lowering levies. Better to hold them at current levels and offset future increases.

Forum Posts: 4091
Member Since:
sp_UserOfflineSmall Offline
01/03/2012 - 1:34 pm
sp_Permalink sp_Print

The only valid way of reducing levies is to cut out waste and inefficiences and to renogotiate unfair contracts inherited from previous ECs or the developers.

Reducing services and neglecting current and future repairs and maintenance to cut levies is ripping off people who have bought into strata blocks  expecting a cerain level of service and amenity.

This is going to become a big issue in the future as people on fixed or reducing incomes watch their levies rise (as they will with inflation).  The answer is not to start cutting services and facilities to suit the lowest common demoninator. Those who can't afford to live in some buildings need to find somewhre they can afford.

This obsession with reducing levies is turning some perfectly decent buildings into the crumbling slums of the future.  Every time you reduce levies by reducing services, neglecting repairs or starving the sinking fund, you reduce the value of everyone's homes.

Sir Humphrey

Full Members
Forum Posts: 751
Member Since:
sp_UserOfflineSmall Offline
01/03/2012 - 10:22 pm
sp_Permalink sp_Print

As treasurer I have been OK with not putting levies up for the last several years even though the budget has been a little higher each year. IE we have had a deliberate slight deficit budget. The result is that our Admin fund balance has reduced over a few years from being about 50% of the annual budget to being about a third of the annual budget. This was conservative since our managing agent advised that maintaining a balance of around 25% was normal and adequate. This year we will recommend a return to levies matching the anticipated expenditure. I would not ever recommend reducing levies but you might sometimes have them stay the same for a while and I don't think they have to exactly match anticipated expenditure if you have more or less than is an appropriate admin fund balance to maintain. 

At your AGM you would vote to approve or amend a budget and levies. Any owner is welcome to question the numbers but as a treasurer I would much rather that someone disputing the EC's recommendation discuss it with me before the meeting. 

Forum Timezone: Australia/Sydney

Most Users Ever Online: 518

Currently Online: Stratademocrats
31 Guest(s)

Currently Browsing this Page:
1 Guest(s)

Top Posters:

Sir Humphrey: 751

scotlandx: 627

kiwipaul: 613

struggler: 459

Austman: 246

Billen Ben: 232

Millie: 187

Kangaroo: 167

considerate band fair: 167

Cosmo: 153

Newest Members:







[email protected]



Deborah Searle

Forum Stats:

Groups: 4

Forums: 46

Topics: 3931

Posts: 18376


Member Stats:

Guest Posters: 241

Members: 4540

Moderators: 2

Admins: 1

Administrators: JimmyT

Moderators: Whale, Lady Penelope