Levies are raised to meet the financial obligations of the body corporate for today and in the future. Levy rates vary from one body corporate to another. This is due to the different size, location, amenities etc of the Scheme. A levy is paid by all lot owners according to their individual lot entitlements. These lot entitlements (particularly the contribution schedule lot entitlements) are listed in your body corporate community management statement.
There are two types of levies:
1. Administrative Fund Levy
Funds normal day-to-day operational expenses such as:
Audit fees, bank charges, caretaking or management fees, community power, taxation, body corporate insurance, administration costs for the body corporate, lifts and other equipment servicing, pools and common area maintenance / materials, and the like. Usually, these expenses occur once or frequently every year.
2. Sinking Fund Levy
Funds large common property maintenance, repairs, improvements as well as purchase of new assets. Examples of large items include repainting common property, repairs to roof and guttering, refurbishing pool and gardens, purchase of additional or replacement pool furniture etc. In other words, these expenses are large irregular costs.
Under the Body Corporate and Community Management Act 1997 (The Act), a building manager is classified as a service contractor and is subject to the requirements of The Act for such persons.
The building manager’s role is, in general, to carry out the body corporate’s duties in connection with the management of the common property as defined in The Act and outlined in survey plans. Building managers are assisting the bodies corporate to fulfil an important requirement in The Act being: a body corporate “must maintain common property in good condition”.
The duties of the building manager include:
- Being completely familiar with the building utilising as-built plans, any machinery and existing maintenance contracts with other contractors
- That where appropriate, maintenance contracts are in place for such things as lifts, sump pumps, garage doors, fire systems etc. and that the contracts are being fulfilled
- Advise the body corporate committee on items requiring attention on common property
- The duties contained within their contract are carried out
Running a body corporate involves people with different roles and accountability.
When you buy an apartment or a company, you automatically become part of the body corporate for that building.
The group consisting of all owners.
Helps administer and manage the bodies corporate responsibilities. Any owner / company nominee can be on this committee and help manage and improve your building. Committee members are elected at the Annual General Meeting (AGM).
Building / Caretaker / Facilities Manager
Oversees or undertakes onsite works and maintenance of shared property and services. Eg: Operation of building systems like heating, air conditioning, ventilation, waste disposal, lifts, garages and utilities.
Body Corporate Manager (Challenge Strata)
Helps the body corporate (owners) do its job. This may include coordinating meetings, arranging insurance, managing finance and taking instructions from the committee.
Think of a body corporate as the group of all the apartment owners in a building or development where there is a common property. An owner is anyone who owns a ‘lot’.
A body corporate manager is a person or corporation who is appointed pursuant to the relevant body corporate Act with the power to perform certain duties and functions of the body corporate and the committee as are delegated to it in an agreement.
The primary responsibilities delegated to a body corporate manager are the duties of the secretary and treasurer.
Any owner / company nominee can be on the committee to help manage and improve your building. Committee members are elected at the Annual General Meeting (AGM).
The committee is charged with the day to day administration of the body corporate.
The duties of the committee include:
- Keeping full and accurate records of meeting resolutions
- Carrying out resolutions passed either at a committee meeting or on voting outside a committee meeting
- Carrying out resolutions passed at a general meeting
- Approving a transfer of any management rights
- Preparing proposed budgets for adoption at each annual general meeting
- Issuing of body corporate information certificates
- Making available the books and records for inspection by an interested person
- Giving notice of levy contributions (after they have been fixed at a general meeting)
- Carrying out spending above the relevant limit for committee spending
- Specifically authorised by ordinary resolution of the body corporate
- All owners have given written consent
- An adjudicator is satisfied it is required to meet an emergency situation, or
- To comply with an order, notice or judgement