Understanding the Basics
If you own a lot in a strata scheme in NSW, it’s important to know what your strata levies cover — and what they don’t. One common question is whether your council rates are included in your strata fees.
In short: no, they are not.
Under the Strata Schemes Management Act 2015 (NSW), owners corporations (the legal name for the collective group of owners) are responsible for managing and maintaining common property. To pay for this, they collect levies from owners. These levies cover things like:
- Cleaning and repairs of common areas (hallways, gardens, lifts)
- Building insurance (not your contents insurance)
- Administration costs (e.g. strata manager fees)
- Essential services maintenance (e.g. fire safety certification)
What Council Rates Pay For
Council rates are separate. They are local government charges used to fund community services like:
- Garbage collection
- Local roads
- Parks and libraries
- Community facilities
Rates are charged to each individual lot owner by the local council. The owners corporation does not collect or pay these on your behalf.
Legal Responsibilities
Under NSW law:
- The owners corporation must budget for and maintain common property.
- Each lot owner must pay their own council rates directly to the council.
- Not paying council rates can lead to interest charges and recovery action by the council.
Key Points to Remember
? Strata levies: pay for maintenance, insurance and shared costs.
? Council rates: pay for local services — you must pay them yourself.
? Both are separate and legally required.
Practical Tips
- Check your levy notices and council rate notices separately.
- Budget for both. They won’t be combined.
- Attend your AGM — understand how your levies are spent.
- Ask your strata manager or council if you’re ever unsure.
Summary
Living in a strata scheme means you share costs for maintaining common property through levies, but your council rates remain your own responsibility. Understanding this distinction helps you avoid confusion — and any nasty surprises.