Common Misconceptions and FAQs about Body Corporate Levies
Is Strata Dynamics the Body Corporate?
Strata Dynamics is not the Body Corporate.
A Body Corporate is a legal entity comprised of all owners in the complex. Every owner of a lot in a community titles scheme is automatically a member of the Body Corporate.
Strata Dynamics is not a Body Corporate. Strata Dynamics is a Body Corporate Manager. We are an administration company here to help Bodies Corporate with their administrative and financial management.
Does the Body Corporate Manager set the levies?
The Body Corporate Manager does not set the levies.
Each year, the Body Corporate Committee agrees on a budget of projected expenses. The Body Corporate contributions (levies) are then calculated to meet the projected requirements as set out in the proposed budget. Levies and the budget are then considered each year at the Annual General Meeting (AGM), at which each Lot Owner has the opportunity to vote on the levies.
Prior to the AGM each Lot Owner is provided with an AGM Notice, which is an invitation to vote on matters affecting the Body Corporate. The AGM Notice includes voting papers along with financial reports and budgets so that each owner can make informed decisions when voting.
If an owner is unable to attend the AGM, completed voting papers can be submitted to Strata Dynamics by email, post, or fax to be counted at the meeting. After the meeting, a copy of the AGM Minutes is issued to each owner detailing the levies agreed upon for the next financial year.
Strata Dynamics encourages all Lot Owners to vote on matters affecting the Body Corporate.
Is the Body Corporate Manager the Committee?
The Body Corporate Manage is not the Committee
Each year at the Annual General Meeting (AGM), a Body Corporate must elect a committee of at least 3 and no more than 7 Lot Owners (different rules apply to schemes registered under the Small Schemes Module) to implement the decisions of the Body Corporate and act on certain issues in regard to the day to day governance of the Body Corporate. The Body Corporate Committee is made up of volunteer owners and the positions are Chairperson, Secretary, Treasurer, and Ordinary Committee Member(s).
Are levies paid to the Body Corporate Manager?
Levies are not paid to the Body Corporate Manager.
All owners are required to pay Body Corporate contributions into both the Administrative Fund and the Sinking Fund. These contributions are collected in order to cover daily and ongoing costs for your Body Corporate.
The administrative fund is used to meet day to day expenditure of the Body Corporate. Examples of administrative fund expenditure might include lawn mowing, electricity, insurance, and other routine items. The sinking fund is used to provide for future capital expenditure. Examples of sinking fund expenditure might include mandatory repairs such as painting of common property and replacement of fixtures on common property. Only a very small portion of the administrative fund levy goes towards the administrative services provided by Strata Dynamics.
As Body Corporate Managers we administer a bank account in the name of your Body Corporate. The Body Corporate contributions must be paid into this account and the Body Corporate expenses are paid from this account. The financial viability of the Body Corporate is therefore dependent upon the Body Corporate setting appropriate levies and Lot Owners paying their levies on
Can the Body Corporate Manager set up an Automated Direct Debit for me?
Neither the Body Corporate nor the Body Corporate Manager is authorised to set up automated payments on your behalf. If you would like to set up an automated direct debit, we recommend contacting the below third party companies that may assist you with automated payments:
StrataPay
Phone: 1300 135 610
www.stratapay.com
Please note Strata Dynamics does not have access to the conditions or payment details of any automated payment arrangements you may enter into with third party.
Depending on the financial structure of your Body Corporate, levies will be issued 2, 3, or 4 times a year and are usually due on the first day of the levy period. Levy periods and amounts are listed in the AGM Notice and
Can levy notices be posted to my Property Manager?
Yes. If you would like Strata Dynamics to send future body corporate notices to your Property Manager, please email info@stratadynamics.com.au with your body corporate name and a request that your billing address be changed.
Can I access my Body Corporate Information Online?
Yes. Information about your Body Corporate is available to you at www.stratadynamics.com.au by selecting ‘Owners’ from the main menu. This owners portal provides access to Body Corporate records such AGM Minutes, Community Management Statements, Building Plans, Committee Resolutions, Insurance Documents, and Sinking Fund Forecasts. You can also update your details online and check over your account ledger. If you do not have a login please request your Stratamax Login by emailing info@stratadynamics.com.
Why have my levies increased?
It’s not uncommon for individual levy amounts to increase or decrease through the year. Depending on how often your levies are issued, the first (and sometimes second) contribution(s) of the new financial year need to be pre-approved at the previous AGM. This is done so that the first levy of the new Body Corporate financial year can be issued without delay to ensure steady cash flow for the Body Corporate. When the new budget is calculated for the following AGM, any pre-approved levies are subtracted from the budget required and then divided between the remaining contributions periods. You will see evidence of any fluctuations in the levies by referring to the AGM Notice and AGM Minutes. Increases in your levies might also be caused by an increase over the previous year in unforseen
Why is my invoice due later than I expected?
The levies are voted on at the AGM, which is usually held around the same time each year. On occasion, however, the AGM date might be later than usual. This sometimes means that levies might not be approved in time to issue for the usual due date. In order to provide you with enough time to pay your levies, the Body Corporate will sometimes need to delay the due date to the 1st of the following month.
Why are the levy figures on the AGM Notice different to the amounts on my invoice?
The levy figures listed on the AGM Notice and AGM Minutes are usually listed on a per lot entitlement basis. Lot entitlements are set by the developer when the Community Titles Scheme is established and are set out in the Community Management Statement (CMS). Each owner can then calculate their own levies based on the figures listed in the AGM Notice.
Why does my invoice include a Special Levy?
Just like administrative and sinking fund levies, special levies are also decided at a General Meeting and details of any special levies will be included in the Meeting Notices and Minutes sent to all owners. If your Body Corporate requires a special levy to be struck, the details with supporting material will be included in your Notice and discussed at the meeting. The most common reasons for special levies are to make a correction to deficits in the funds of the Body Corporate or to undertake a significant and unforseen capital project of the Body Corporate.
I’m a new owner. Why does my invoice include levies dated prior to settlement? I only just bought the property.
When you take ownership of a lot within a Body Corporate, you become liable for any and all outstanding Body Corporate levies.
Please note that neither the Body Corporate nor Strata Dynamics are directly involved in the purchase process. If you have any queries regarding amounts levied before you took possession of the Body Corporate property we encourage you to contact the solicitor who handled your purchase as they should have made adjustments at the time of settlement to cover payment of any outstanding levies.
I’m a new owner. Why is the due date on my invoice so soon? / Why has the due date already passed?
Please note that the original levy notice would have been issued to the owner recorded on the Body Corporate Roll at least 30 days prior to the due date. However, either due to the timing of your purchase or receipt of your contact details, we were not able to send your levy notice to you at the usual time of issue. A levy notice was sent as a courtesy upon notification of your purchase.
What is the Body Corporate Financial Year?
The financial year period for your Body Corporate may not necessarily line up with the 1 July – 30 June Australian fiscal year. The financial year for your Body Corporate is based on the date of registration of the Body Corporate. For example, if a Body Corporate is registered during the month of October, then its financial year will be from 1 October to 30 September the following calendar year.
For further information about any of the topics included in this information sheet, please email info@stratadynamics.com.au or, head to our contact-us page.