Many owners across Southeast Queensland may be noticing increases in their body corporate levies. While levy increases are never welcome, they are often necessary to ensure a body corporate can meet its ongoing administrative, maintenance, legal, and financial obligations.

Under the Body Corporate and Community Management Act 1997, a body corporate is required to maintain common property in good condition and manage its finances responsibly. Levies collected from owners fund essential expenses such as building insurance, maintenance, utilities for common areas, cleaning, gardening, and administrative services.

Several factors have contributed to rising costs in recent years. One of the most significant has been the increase in building insurance premiums across Queensland. This has been driven by higher construction costs, extreme weather events, and increased claim activity. As insurance is a mandatory expense for most schemes, these increases can have a direct impact on the annual budget.

Maintenance costs have also risen due to higher contractor rates, increased material costs, and additional compliance requirements. In many cases, older buildings are reaching a stage where major capital works are required. As a result, contributions to sinking funds may need to increase to ensure sufficient funds are available for future repairs and replacements.

More recently, bodies corporate have also been receiving notices from contractors and suppliers advising of cost increases due to added fuel charges. This further highlights the importance of committees ensuring budgets are set at appropriate levels.

Committees are responsible for preparing annual budgets that reflect the expected costs of operating and maintaining the scheme. While increases can be frustrating—particularly in the context of broader cost-of-living pressures—adequate levy funding is essential to ensure the property is properly maintained and to protect the long-term value of all lots within the scheme. Maintaining an up-to-date sinking fund forecast can assist committees in planning effectively for both current and future capital expenditure.

If owners have questions about their budget or levy contributions, they are encouraged to review the scheme’s annual budget and financial statements, or raise queries with their committee or body corporate manager.