The short version
- Levies are contributions to two funds: the administrative fund (running costs) and the sinking fund (major capital items).
- They are set by budget at the AGM and split between lots by contribution schedule lot entitlement.
- The money is held in an account in the body corporate's name, not the manager's.
- Late levies attract penalty interest if the body corporate has resolved to charge it, and can be recovered through the courts.
Two funds, two purposes
Under the Body Corporate and Community Management Act 1997 and its regulation modules, a Queensland body corporate keeps an administrative fund for recurring expenses — insurance, common power and water, cleaning, gardening, routine maintenance, the body corporate manager's fee — and a sinking fund for anticipated major capital expenditure such as painting, lift refurbishment, roof replacement and pool plant, based on a sinking fund forecast that looks ahead across a rolling period. Each fund has its own budget adopted at the annual general meeting, and each lot pays a share of both.
How your share is worked out
Each lot in the community management statement carries two entitlements. The contribution schedule lot entitlement sets each lot's share of levies; the interest schedule lot entitlement sets its share of common property and, in most cases, of insurance and rates. Your levy notice should show the total contribution for each fund, your lot's entitlement and the amount payable by the due date. Special levies can be raised by general meeting for unbudgeted expenses.
The body corporate bank account
The body corporate must hold its funds in an account in its own name with a financial institution. A body corporate manager may operate the account under the terms of their engagement, but the money belongs to the scheme, and the accounts must be kept and audited (unless the body corporate resolves not to audit, where permitted) with statements available to owners. If you cannot see the scheme's bank balances, ask; the committee is entitled to them and so, through the records, are owners.
Notices, due dates and payment
Budget adopted
The AGM adopts the administrative and sinking fund budgets and fixes the contributions, usually payable in instalments across the financial year.
Notice issued
Each owner receives a contribution notice at least 30 days before the due date showing the amount, the funds, the due date and how to pay — BPAY, EFT, direct debit or card where offered.
Discount for early payment
Many bodies corporate resolve to offer a discount (up to 20% under the modules) for contributions paid by the due date. The notice must state it.
Payment received and receipted
Payments are matched to the lot and the fund, the ledger updated, and the owner can see their balance.
Arrears, interest and recovery
If a contribution is not paid by the due date the body corporate may charge penalty interest — the modules allow up to 2.5% per month simple interest — provided it has resolved to do so, and the discount is lost. An owner who owes a contribution for a set period may lose the right to vote on ordinary motions. The body corporate can recover the debt, with interest and reasonable recovery costs, and must commence proceedings within the period the module sets once the debt has been outstanding for two years. Committees can approve payment plans; the key is consistency and a clear record.
Keeping the ledger straight with software
Levy runs by entitlement
Contributions calculated from the schedule entitlements and the adopted budget, issued in bulk with the right notice period.
Bank feeds and receipting
Payments matched automatically to lot and fund; the sinking and administrative balances reconciled to the scheme's own account.
Direct debit and BPAY
Owners pay from the portal by the method the scheme offers; discounts apply automatically when paid on time.
Structured arrears process
Reminders, interest calculated per the resolution, payment plans and a documented escalation path.
Owner self-service
Each owner sees their notices, balance, interest and receipts — the committee stops fielding statement requests.
Reports for the AGM
Fund balances, arrears ageing and budget versus actual, exported for the meeting papers and the auditor.
In TowerDesk, financial management — levies, funds, bank feeds, direct debit, reconciliation and debt recovery — is an optional add-on at $5 per lot per month on top of the building's portal. See the levy collection and arrears software page and our body corporate software for Queensland.
Levies, funds and the portal in one place
See how contributions, receipting, arrears and the sinking fund forecast run inside your scheme's own portal. Book a walkthrough.
Frequently asked questions
What are body corporate levies?
Contributions each lot owner pays to the body corporate's administrative fund (recurring running costs) and sinking fund (major capital items), set by the budgets adopted at the annual general meeting and divided between lots by contribution schedule lot entitlement.
Does a body corporate have to have its own bank account?
Yes. Funds must be held in an account in the body corporate's name with a financial institution. A body corporate manager may operate it under their engagement, but the money belongs to the scheme and the accounts must be kept and made available to owners.
How much interest can a body corporate charge on late levies?
Under the Queensland regulation modules, up to 2.5% per month simple interest on the overdue amount, provided the body corporate has resolved to charge penalty interest. Any early-payment discount is also lost.
Can I be stopped from voting if my levies are unpaid?
An owner who owes a body corporate debt may be unable to vote on ordinary motions, though rules differ for motions requiring a resolution without dissent. Check the regulation module that applies to your scheme.
What is the difference between a special levy and a sinking fund levy?
A sinking fund levy is the regular contribution to the forecast capital fund. A special levy is an additional contribution raised by general meeting for an unbudgeted expense, such as an urgent repair or a shortfall.