The first quarterly notice arrives after you move into the new townhouse. The figure is higher than you remember from the inspection, and the page splits it into two lines with two names you have never seen. You call the manager, and they tell you it was decided at the annual general meeting — a meeting you did not know had happened.
Body corporate fees are the recurring cost most often left out of a Queensland buying budget, because they do not appear in the sale price. And on the Queensland Government’s own description, the way the amount is split between owners was fixed when the scheme was established — it is not something negotiated at the point of sale.
This article covers where the money goes, who decides the amount, why two identical units can pay different levies, and what happens if you pay late. Everything comes from the Queensland Government’s body corporate pages, checked on 3 September 2026.
The short version on body corporate fees in Queensland: the annual levy each owner pays is decided at the annual general meeting by ordinary resolution. The money is split between two funds — an administrative fund for regular running costs and a sinking fund for big or one-off items — and money cannot be transferred between them. Your share is calculated from the contribution schedule lot entitlements recorded in the community management statement. Pay late and the penalty is simple interest at a set rate of not more than 2.5% for each month the contribution is overdue.
In Queensland it is a body corporate, not strata
In Queensland the term used in the legislation and on the regulator’s pages is body corporate, and the governing law is the Body Corporate and Community Management Act 1997. “Strata” is the word used in some other states.
The practical consequence: when you read a guide about “strata fees”, check which state it is describing. The figures and processes in this article are Queensland’s.
What the fees are made up of
Owner contributions are split into two funds, and each has its own spending scope.
The administrative fund. Money paid into it includes owners’ contributions to the administrative fund, interest from investing administrative fund money, fees paid for inspection of records or copies of body corporate documents, and any amount received that is not required to be paid into the sinking fund. It covers anything that is not required to be paid from the sinking fund — regular maintenance of common property, insurance premiums, and administrative costs.
The sinking fund. Money paid into it includes owners’ contributions to the sinking fund, interest received from the fund’s investments, and money from insurance pay outs for major capital items that are destroyed or damaged. It can be spent on big or one-off items such as painting or structural repairs to common property, replacing major items like common property fences or carpets, and other items that should reasonably be met from capital, such as pool furniture.
And one short but important line: money cannot be transferred from one fund to the other.
Both funds are required where the scheme is registered under the Standard, Accommodation, Commercial or Small Schemes modules. Schemes registered under the Specified Two-lot Schemes Module do not need formal budgets, though they may still agree on certain expenses for good financial planning.
The sinking fund has to look at least 9 years ahead
This is a point that gets overstated, so it is worth separating two things.
What is required is the budget. The sinking fund budget must reserve an amount to meet likely spending for at least 9 years after the current financial year. Across that 10-year period it must allow for likely spending of a capital or non-recurrent nature — painting a building, for example — replacement of major capital items such as a boundary fence, and other costs that should reasonably be met from capital.
What is not required is hiring someone to forecast it. A body corporate may ask a professional to prepare a sinking fund forecast, but it does not have to; the committee or an owner can estimate the likely spending requirements. The government states this is a matter for each body corporate.
What that means when you are inspecting: how the reserve figure was arrived at can differ from scheme to scheme, and you are entitled to ask how it was done.
Who sets the fees, and where
Not the manager, and not the committee.
The annual levy each owner pays is decided at each annual general meeting. At that meeting the body corporate must, by ordinary resolution, agree the administrative fund and sinking fund budgets for the financial year, work out the amount each lot must pay based on the agreed budgets, decide how many instalments the levy is split into, and set the due date for each instalment.
Who prepares the budget? The committee prepares it for owners to consider at each annual general meeting, and a proposed budget must be included with the notice of the AGM.
Which is the reason to read the meeting notice rather than filing it. The figure you will pay for the year is in that document, before it becomes a decision. Our guide to what a body corporate is sets out the wider decision-making structure.
Why two identical units pay different amounts
The answer is lot entitlements, and they were set before you appeared.
Lot entitlements in a community titles scheme set out each owner’s body corporate costs and voting rights, their share of common property and other assets, and the lot value used for calculating government rates and other charges. They are set by the original owner — the developer — when the scheme is established, and the schedules are recorded in the community management statement.
There are two schedules, and they do different jobs:
| Schedule | Used to calculate |
|---|---|
| Contribution schedule | Each owner’s share of most body corporate costs, and the value of an owner’s vote if a poll is called |
| Interest schedule | The owner’s share of common property and body corporate assets, and the lot value for rates and other local government charges |
Each lot is given a whole number in each schedule, and the aggregate for the scheme is shown as well — so your share of most costs is your contribution schedule entitlement measured against that aggregate. The government also notes that some costs, such as building insurance premiums, may be divided in a different way.
One more thing worth knowing if you are looking at an older scheme: registered plans for schemes created before 13 July 1997 have only one schedule of lot entitlements, and the law treats the contribution and interest schedules as identical to that single schedule.
Insurance, and where it depends on the survey plan
Insurance is one of the things paid from the administrative fund, and it is where an exception catches people out.
A body corporate must insure the common property, body corporate assets, public risk, and — in the government’s words — in most cases, every building that contains a lot. That qualifier is the source’s, not ours.
On the level of cover, the public risk policy must be for at least $10 million for a single event, and at least $10 million for the length of time the insurance policy covers. It must cover amounts the body corporate could be liable to pay for compensation for death, illness and injury, and for damage to property.
And here is the part that decides a good deal: the insurance a body corporate must have is affected by the type of survey plan the scheme is registered under. The two common types are building format and standard format. To find out which one applies to a scheme, the government directs you to Titles Queensland for a copy of the registered survey plan.
So if you are buying a freestanding dwelling inside a scheme, whether the building insurance is the body corporate’s job or yours is a question to check against that scheme’s paperwork rather than assume.
Spending limits: two default numbers, and what they actually mean
These two figures are often read as spending caps. The source says something different.
The committee spending limit. The body corporate can set it by ordinary resolution at a general meeting, and there is no minimum or maximum limit it can set. If no amount is set by a general meeting resolution, the relevant limit is calculated by multiplying the number of lots in the scheme by $200 — so a scheme of 12 lots has a limit of $2,400. The committee must allow for GST within that.
The major spending limit. Again the body corporate can set it by ordinary resolution, with no minimum or maximum. If no amount is set, the limit is the lesser of $1,100 multiplied by the number of lots in the scheme, or $10,000 — so for a scheme of 5 lots it would be $5,500.
But read what the government says the second number is for: the major spending limit is only used to determine how many quotes are required when considering a motion at a committee meeting or a general meeting. In other words it is not a brake — it is a switch that turns on an extra step.
Schemes registered under the Specified Two-Lot Schemes Module and the Commercial Module do not have spending limits.
What happens if you pay late
The body corporate must decide by ordinary resolution whether to give discounts and charge penalties.
- Discount for paying on time: a discount may be given where the contribution is paid by the due date, and it cannot be more than 20% of the instalment amount.
- Penalty for paying late: simple interest at a set rate, not more than 2.5%, for each month the contribution is overdue.
- Discretion: even where a payment is late, the body corporate can decide to allow the discount or not charge the penalty, in full or in part, if there are special reasons.
On recovery: if a contribution is not paid by the due date, the body corporate can start debt recovery action. Where a debt has been overdue for 2 years, the body corporate must start debt recovery within 2 months of that date — and that does not stop it from starting earlier.
The uncomfortable parts, said plainly
Three things worth knowing before you pay a deposit.
The fee is not fixed year to year. It is decided again at each AGM against that year’s budget. A scheme that has just repainted or replaced fencing can have a sinking fund budget quite different from last year’s.
A low fee is not automatically a good sign. Because sinking fund budgeting is a matter for each body corporate and a professional forecast is not required, how the number was arrived at can vary between schemes. That is the reason to look at a scheme’s financial records before signing.
Tax is deliberately out of scope here. Questions about the tax treatment of these costs belong with a tax agent registered with the Tax Practitioners Board, within the scope of their registration.
And one boundary worth stating: Nextstar Realty does not provide legal services or tax agent services. This article does not conclude whether any particular scheme’s fees are reasonable — that depends on that scheme’s budget, records and regulation module.
Body corporate fees at a glance
| Item | Per the source | The condition the source attaches |
|---|---|---|
| Who sets the levy | The annual general meeting, by ordinary resolution | The committee prepares the budget; a proposed budget goes out with the meeting notice |
| The two funds | Administrative fund and sinking fund | Money cannot be transferred between them |
| Sinking fund horizon | At least 9 years after the current financial year | A professional forecast is not required; the committee or an owner can estimate |
| Basis for your share | Contribution schedule lot entitlements | Some costs, such as building insurance premiums, may be divided differently |
| Compulsory insurance | Common property, body corporate assets, public risk, and in most cases every building that contains a lot | Depends on whether the survey plan is building format or standard format |
| Public risk cover | At least $10 million for a single event, and at least $10 million for the policy period | — |
| Committee spending limit, default | Number of lots × $200 | Only where a general meeting has not set an amount; no minimum or maximum |
| Major spending limit, default | The lesser of $1,100 × lots, or $10,000 | Only determines how many quotes are required |
| Late payment | Simple interest at a set rate, not more than 2.5% per month overdue | An on-time discount cannot exceed 20% of the instalment |
| Debt recovery | Where a debt is 2 years overdue, recovery must start within 2 months | Does not stop the body corporate starting earlier |
Frequently asked questions
Who decides how much I pay?
The annual general meeting, by ordinary resolution. The committee prepares the budget and a proposed budget is included with the meeting notice, but the committee cannot set or change a levy on its own.
Why does my neighbour pay less for the same floor plan?
Because your share of most body corporate costs comes from the contribution schedule lot entitlements recorded in the community management statement, which were set by the developer when the scheme was established — not from the size or type of the dwelling.
Can money be moved from the sinking fund to cover running costs?
No. The government states money cannot be transferred from one fund to the other.
What is charged if I pay late?
Simple interest at a set rate of not more than 2.5% for each month the contribution is overdue, where the body corporate has resolved to charge penalties. The body corporate can decide not to charge it, in full or in part, if there are special reasons.
Does the committee have a spending cap?
There is a committee spending limit, which a general meeting can set by ordinary resolution with no minimum or maximum. Where none is set, it is the number of lots multiplied by $200. The separate major spending limit is not a cap at all — it only determines how many quotes are required for a motion.
Next steps
If you are looking at a specific property, ask for the scheme’s community management statement and its financial records, and read the AGM notice rather than the summary. The structure behind all of it is in our guide to what a body corporate is in Queensland.
If you are comparing new builds rather than existing schemes, house and land packages in Brisbane covers the two-contract structure, and the current Brisbane projects show what is available. To talk it through, book a consultation.
About Nextstar Realty
Nextstar Realty (Nextstar Investment Group Pty Ltd) is a licensed real estate agency in Queensland, based in Rocklea, Brisbane. It sells new-build homes in Brisbane, Queensland, including house and land packages, townhouses and new apartments, and works with buyers in Vietnamese and English. Articles on this blog are general information and cite government sources. Nextstar does not provide legal, financial or tax advice. You can see the projects currently for sale or book a consultation.
Sources
- Queensland Government — Administrative fund
- Queensland Government — Sinking fund
- Queensland Government — Body corporate fees for owners
- Queensland Government — About lot entitlements
- Queensland Government — Compulsory insurance
- Queensland Government — Building insurance
- Queensland Government — Committee spending limits
- Queensland Government — Body corporate spending limits
- Body Corporate and Community Management Act 1997 (Qld)
- Queensland Government — Lot entitlements — applying
Note on scope and timing: the figures and rules above were checked against the Queensland Government’s body corporate pages on 3 September 2026. What applies depends on the regulation module and the by-laws of the individual scheme, so check that scheme’s community management statement or call the BCCM information service on 1800 060 119 before relying on any of it. Nextstar Realty does not provide legal services or tax agent services.
This article is general information only and does not take into account your personal circumstances, financial situation or objectives. It is not legal, financial or taxation advice. You should obtain independent professional advice before making any property decision.
