If you are buying a unit or apartment in Queensland, you will hear the term body corporate. In Victoria and NSW the same structure is called an owners corporation. Understanding what a body corporate does, what it costs and what to look out for is essential before you commit to any strata purchase.
What Is a Body Corporate?
A body corporate is the legal entity that manages the common property and shared facilities of a strata development — things like corridors, gardens, pools, lifts, car parks and the building’s external structure. Every lot owner in the development is automatically a member of the body corporate.
What Does a Body Corporate Do?
- Maintains common areas and shared facilities
- Arranges building insurance for the structure and common property
- Sets and enforces by-laws (the rules for the development)
- Collects levies from all owners to fund operations and maintenance
- Holds annual general meetings where owners vote on major decisions
- Manages disputes between owners or tenants
How Much Does a Body Corporate Cost?
Body corporate fees (levies) vary enormously depending on the size of the development, its facilities and its age. As a rough guide:
- Small block of units (4-6 lots): $500-$1,500 per quarter
- Medium development with pool and gym: $1,500-$3,500 per quarter
- Premium high-rise with concierge and facilities: $3,000-$8,000+ per quarter
Always request the full levy schedule and review the last two years of financial statements before making an offer.
What Are Special Levies?
A special levy is a one-off charge issued to all owners when the body corporate’s funds are insufficient to cover a major repair or emergency. Special levies can range from a few thousand to tens of thousands of dollars per lot. Checking the capital works fund balance before buying is critical to avoid nasty surprises.
What to Check in the Body Corporate Records
- Are levies being paid on time? Are there arrears?
- Is the capital works (sinking) fund adequate for planned future works?
- Are there any outstanding special levies or upcoming major works?
- Are there any active disputes or VCAT/QCAT proceedings?
- What do the by-laws say about pets, renovations and short-stay rentals?
How a Property Advisor Can Help
At Collings, our buyer advisory service includes a review of the owners corporation or body corporate records as part of the full property assessment. For a fixed fee of $4,500 + GST, we help you understand what you are buying before you commit — including hidden costs, financial risks and by-law restrictions.
Frequently Asked Questions
Are body corporate fees tax deductible for investors?
Yes. Body corporate fees are generally tax deductible for investment properties as a property management and maintenance expense. Always confirm with your accountant.
Can body corporate fees increase?
Yes. Levies are set annually by the body corporate committee and can increase to cover rising maintenance costs, insurance premiums or major capital works.
What happens if I do not pay body corporate fees?
Unpaid levies attract interest and can result in legal action by the body corporate against the lot owner. In extreme cases, the body corporate may register a debt against the title of the property.
Get Independent Advice Before You Buy
Body corporate fees and financial health are critical factors in any unit or apartment purchase. Collings Property Advisory provides independent guidance for buyers at a fixed fee of $4,500 + GST.
Talk to a Collings property advisor before you commit to a strata purchase.
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