How to calculate your levies?
What makes U Body Corporate Management different?
U Body Corporate Management was established in 2022 by Siobhan Brittain. Siobhan has been in the industry for the past 8 and a half years. Through this time, Siobhan has seen many building that are governed by great committees and some that have the potential to be great buildings, with a few tweaks in the govenance of the scheme.
We are committeed to ensuring that all buildings are governed the way they need to be according to legislation, and also to make sure the committee works effectively together. We know that sometimes there are challenges within a body corporate and will work together with you to make sure everything runs smoothly. We care about how your body corporate is managed.
Call us today on 0493 443 958 to see how we can support your community.
Whats the difference between an Administrative Fund and a Sinking Fund
The Administrative fund is used for the day to day and reasonable spending of the body corporate. This can include the following:
- Strata Management Agreement expenses
- Onsite Manager/Caretaker Agreement expenses
- Repairs and maintenance expenses for common areas
- Other expenditure of a recurrent natureand Insurances.
The Sinking Fund is applied towards items such as:
- Spending of a capital or non-recurrent nature
- The periodic replacement of major items or a capital nature.
The Sinking Fund can be used for items such as painting of a building, or common area assets that requiring replacement.
Your body corporate is also required to reserve enough funds to meet anticipated major expenditure for at least 9 years. This is calculated through a Sinking Fund Forecast.
Why do you Have to Pay Levies
Living in a body corporate means having to pay levies. The levy that you pay to the body corporate is for the day to day (administrative fund) expenses and any capital works (sinking fund) that are required now and in the future of the building.
Each year, the body corporate sets an annual budget. This is done via adopting the budgets at the Annual General Meeting (AGM). The funds collected are to allow the body corporate to have funds for expenditure throughout the financial year. These are often broken down into six monthly, tri-monthly, or quarterly installments depending on what the body corporate decides.
For informaton in relation to levies, please see Section 152 of the Accommodation Module, and Section 162 of the Standard Module.
Owner V Body Corporate Responsibility
A question that is often asked is who is responsible for what in a building. Here is some examples of what the Body Corporate and Owners are responsble for
The body corporate is usually responsible for maintaining:
- the outside of the building
- the foundations and roof of the building
- roofing membranes that are not on common property but give protection for lots or common property
- essential structural elements of the building (like foundation structures, roofing structures that provide protection and load-bearing walls) even if they are not on common property
- roads, gardens and lawns on common property
- facilities on common property (like swimming pools and barbeques)
- railings or balustrades on, or near to, the boundary between a lot and common property, including the balustrade on a private balcony
- any doors or windows, and their fittings in a boundary wall between a lot and the common property (including garage doors and their fittings)
- utility infrastructure (like equipment, pipes and wiring) that is on common property, or in a boundary structure, or services more than 1 lot.
The lot owner is generally responsible for:
- the inside of the lot, including all fixtures and fittings inside the lot
- doors and windows leading onto a balcony that forms part of the lot
- a shower tray used by the lot, even if it is not within the boundaries of the lot
- utility infrastructure (like equipment, pipes and wiring) that is within the boundaries of the lot and only services that lot
- utility infrastructure (including equipment and associated wiring and pipes) that is on common property, if it only services that lot and is a hot water system, washing machine, clothes dryer, air-conditioner or similar equipment
- any fixtures or fittings, including on common property, that were installed by the occupier of a lot for their benefit
- exclusive use areas the owner has the benefit of, unless the exclusive use by-law says otherwise.
Good News for Granny Flat Owners
This may assist homeowners to help pay for inceasing housing costs, and also help people that may have found themselves with little options with the inceasing costs of living.
Homeowners will be encouraged to rent secondary dwellings for the next three years under emergency planning changes expected to house thousands of Queenslanders.
Is this an answer to the housing shortage in queensland? Homeonwers that have a granny flat are now able to rent them out to people other than their immediate family.
It brings up some questions that are often asked in Strata meetings, about usage of common property/ground, noise restrictions, and peaceful enjoyment.
What a great temporary solution to a very real problem that is faced by many.