We recently wrote an article on the topic of strata levies, including what they are for, how they are set, and why they change. This time, we are unpacking strata fees: a term often used interchangeably with levies, but which refers to something quite different.
As a strata owner, you might be wondering:
- “What are strata fees and why am I paying them?”
- “Are they the same as strata levies?”
- “Do strata managers charge different fees per building?”
Let us break it down.
What are strata fees?
Strata fees are the charges paid to your strata management company for the services they provide to your building. These fees are separate from your strata levies and are paid by the Owners Corporation (all owners collectively), not individual owners directly.
Strata fees cover the day-to-day management and support that keeps your building running smoothly, including:
- Attending meetings (AGMs, EGMs, committee meetings)
- Preparing and issuing meeting notices and minutes
- Maintaining financial records and budgets
- Issuing levy notices and managing arrears
- Coordinating trades, quotes, and maintenance
- Providing guidance on strata legislation and compliance
- Supporting dispute resolution and insurance claims
In short: strata fees are the cost of engaging a licensed strata manager to run your building professionally and in line with legislation.
How are strata fees different from levies?
This is a common point of confusion.
- Strata levies are the contributions all owners pay to fund the ongoing operation and upkeep of the building.
- Strata fees are one line item within that budget—specifically, the portion paid to your strata management company for professional services.
Think of it this way: levies fund the building’s budget, and strata fees are one of the services your building pays for using those funds.
How are strata fees governed?
Strata management fees are not set arbitrarily, they are governed by a combination of legislation, contractual agreements, and consumer protections that ensure transparency and fairness.
In NSW, strata fees are regulated by:
- The Strata Schemes Management Act 2015 (NSW) – outlines the responsibilities of strata managing agents and requires all fees to be disclosed and agreed upon in a written agency agreement.
- The agency agreement – a contract approved by the Owners Corporation that details the scope of services and associated fees. This agreement must be voted on at a general meeting.
- NSW Fair Trading guidelines – provide further clarity on what strata managers can and cannot charge for and help ensure ethical conduct across the industry.
- Australian Consumer Law (ACL) – protects owners from misleading or unfair practices and gives committees legal recourse if a service agreement does not deliver what was promised.
How are strata fees paid?
Strata fees are not billed separately to owners. Instead, they are paid by the Owners Corporation to the strata manager, using funds collected through your regular strata levies.
As an owner, you contribute to these costs through your levy payments. These levies go into the building’s Administrative Fund, which is used to pay for day-to-day expenses, including management services.
The strata manager then issues an invoice to the Owners Corporation, usually monthly, for the agreed management fee outlined in the agency agreement. This fee is then paid directly from the Admin Fund (not from the Capital Works Fund, which is reserved for major upgrades and repairs).
All transactions are recorded in your building’s financial statements and included in the annual reporting presented at your AGM.
Who decides how much strata managers are paid?
Strata managers do not set their own fees without oversight. All management fees are:
- Outlined clearly in a written agreement
- Reviewed and approved by the strata committee and/or Owners Corporation
- Voted on at a General Meeting (AGM or EGM)
These agreements are also reviewed at the end of their term or when appointing a new manager, giving committees the opportunity to negotiate based on value, service levels, and building needs.
Are all strata management fees the same?
No. Fees can vary depending on:
- The size and complexity of the building
- The level of support required
- The services included in the agreement
- Whether your building requires additional services like insurance claims or NCAT attendance
We take a transparent, value-based approach to fees. We work with committees to tailor agreements that reflect the needs of their building.
Why it matters
Understanding the difference between strata fees and levies helps you feel more confident in where your money is going and why. It also makes it easier to spot what is reasonable, what is optional, and what to ask about if you are unsure.
If you would like more information about how your building’s management fees are structured, or you are curious how they compare to industry benchmarks, feel free to contact your strata manager.
FAQs: Strata Fees vs Levies
Are strata fees and levies the same thing?
No. Levies fund the building’s overall budget. Strata fees are the payment made to your strata manager from that budget for their professional services.
Can strata management fees be negotiated?
Yes. Fees are outlined in your management agreement and can be renegotiated when appointing or renewing your manager.
Do strata managers set the levies?
No. Levies are proposed in the budget and approved by owners at the AGM.
Why are my levies increasing?
Costs may rise due to inflation, rising contractor prices, new compliance requirements, or long-term maintenance needs.
