Body Corporate Special Levies – What You Need to Know (Especially if You're Buying)

What Is a Special Levy?

Under the Body Corporate and Community Management Act 1997, all bodies corporate in Queensland must establish two key funds:

• Administrative Fund – for day-to-day expenses (e.g. cleaning, insurance, routine maintenance)
• Sinking Fund – for long-term or major capital works (e.g. painting, roof replacement, lift servicing)

Owners contribute to these funds via regular levies.

However, when there's not enough money in the sinking fund to cover an unexpected or urgent cost, like storm damage or essential infrastructure repairs, the body corporate may need to raise a Special Levy. This is an additional payment required from all lot owners, typically based on each lot’s contribution entitlement.

In a well-managed scheme, the sinking fund will be “healthy” enough to cover foreseeable major expenses, meaning special levies should rarely be necessary. But where planning has fallen short or costs arise unexpectedly, special levies may be the only option.

When Can a Special Levy Be Raised?

A special levy must be approved by an ordinary resolution at a general meeting. This means a majority of lot owners need to vote in favour.

The motion proposing the levy should state the purpose and amount, and when it will be levied and due.

Buying or Selling? Here's What You Need to Know

If You’re Selling

If a special levy is raised before settlement—even if it’s due after the sale—you may still be liable for payment.

If levied, you must disclose to the buyer in the Form 33

If You’re Buying

Before committing to a purchase, review the body corporate records carefully. Key documents to request include:

• Community Management Statement (CMS) – outlines by-laws, lot entitlements, and property use rules
• Recent meeting minutes – may hint at upcoming levies or known maintenance issues
• Financial statements – reveal the current state of the administrative and sinking funds
• Sinking fund forecast – shows whether the body corporate is financially prepared for major future expenses

A special levy may not be ‘levied’ yet but has been raised, we review body corporate records carefully to see if any are in the works (which the seller may not have to disclose to you).

Special levies are sometimes necessary to maintain the safety and value of shared property. But they can become a source of stress if they’re not clearly disclosed or properly planned for.

Whether you’re buying or selling understanding how special levies work will help you avoid surprises and make more informed decisions.

Disclaimer: This advice is general in nature and is not intended to be legal advice.

Holt Ronan Lawyers are experts in Body Corporate matters and provide assistance to purchasers and owners on the Gold Coast. If you would like legal advice, please call our office on (07) 5619 0440 and we would be pleased to assist you.