A Guide to Body Corporate Levies: What Drives Levies and How Are They Set?

August 9, 2024

As a collective of unit owners, you are naturally responsible for the management, repair or replacement of the common property in your Body Corporate. Just like owners of a regular house, if something goes wrong you need to fix it.

 

So, in order to fund the management of the building, the body corporate comes up with a projected budget for what they can foresee will need attention and charges each owner a proportional share (levies).The amount of the levy you need to pay will usually depend on the size of your unit and what assets it includes. 


This shared responsibility ensures that the common areas, such as hallways, elevators, and shared amenities, are well-maintained and functional for the benefit of all residents. These levies are typically set by the body corporate, which consists of all the property owners within the complex. But what drives levies and how are they set?

 

The process for setting body corporate levies involves several steps:

 

1. Budgeting: The body corporate prepares an annual budget that outlines the anticipated expenses for the upcoming year. This budget includes items such as insurance premiums, maintenance costs, repairs, utilities, management fees, and administrative expenses.

 

2. Calculation: Once the budget is finalised, the total cost is divided among the unit owners based on their unit entitlements. Unit entitlements are determined by factors such as the size, location, and value of each unit relative to the whole complex.

 

3. Approval: The proposed levies are presented to all unit owners for approval at the annual general meeting (AGM) of the body corporate. Owners have the opportunity to review the budget and levy amounts and vote on whether to accept them.

 

4. Implementation: If the budget and levies are approved by the majority of unit owners at the AGM, the levies are implemented for the upcoming financial year. Owners are then required to pay their levies as outlined in the budget.

 

5. Adjustments: In some cases, adjustments may need to be made to the levies throughout the year if unexpected expenses arise or if the budget needs to be revised. Any changes to the levies must be approved by the body corporate at a general meeting.

 

It's important to note that body corporate levies may vary from year to year based on factors such as changes in expenses, fluctuations in the property market, and the need for major maintenance or repair projects within the scheme.


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Owning a unit in a body corporate community means sharing common spaces, amenities, and responsibilities - and with that can come the occasional disagreement. Whether it’s noise complaints, parking disputes, or a by-law breach, it’s important to address issues constructively and follow the correct process. Below, we’ve put together a brief guide on what unit owners should know about resolving conflicts in a strata environment before they escalate. 1. Start with a Calm, Direct Conversation Many issues can be resolved quickly through a respectful, private conversation. If you’re comfortable doing so, approach the other party directly and politely explain your concern. Sometimes, the other person may not even be aware there’s an issue. 💡 Tip: Avoid approaching someone in the heat of the moment - wait until you can speak calmly and clearly. 2. Check the By-Laws First Before making a complaint, it’s worth confirming whether the issue actually breaches a by-law. Common by-laws cover: Noise limits Parking rules Use of balconies or common areas Pet ownership Renovations or alterations If you're unsure, contact your body corporate manager (that's us!) for guidance or request a copy of the by-laws. 3. Put It in Writing if Needed If a direct conversation hasn’t resolved the issue (or if you don’t feel comfortable initiating one), the next step is to submit a written complaint to the body corporate or strata manager. Be clear, factual, and avoid emotional language. Include: The nature of the issue Dates/times of incidents (if applicable) Any steps you’ve already taken 💡 Reminder: The body corporate can only act on matters that fall within its authority - private disputes that don’t breach by-laws may be outside its jurisdiction. 4. Give the Process Time to Work Once a complaint is submitted, the committee or manager will assess the situation. This might involve issuing a breach notice, seeking further information, or inviting both parties to discuss the issue. It’s important to give the process time - rushing or pushing for immediate outcomes can sometimes inflame the situation. 5. Mediation or Dispute Resolution If informal approaches and formal notices don’t resolve the matter, you may need to escalate the issue through mediation through services like Disputes Tribunal or Tenancy Tribunal (which can handle body corporate disputes). Mediation helps find a compromise without going to court. If mediation fails, you may escalate to formal hearings or court action, but this should always be a last resort. 💡 Tip: Document everything - emails, notes, or reports - if you believe you’ll need to take the matter further. Final Thought Disputes are never pleasant, but they can often be resolved without legal action if handled early and respectfully. As a unit owner, knowing the correct process protects both your rights and your community’s peace of mind. For more information on dealing with disputes, please don't hesitate to get in touch with our team at 04 970 5435. You can also refer to your scheme’s by-laws.
By Ben Duflou September 2, 2025
At CBCS, we’re dedicated to supporting body corporate committees with practical, relevant tools and resources. We understand how complex body corporate responsibilities can be - and we’re here to help make things clearer and easier wherever we can. As we continue building our Resources Hub, we want to ensure it’s filled with useful, easy-to-follow content that meets the real needs of committee members and owners. If there are specific guidebooks, tools, or resources you’d find helpful, we’d love to hear your suggestions. Whether it’s a topic you’ve been unsure about or something you think others in the community would benefit from, let us know! Email us at admin@cbcs.nz - we’d love to hear from you.
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View our April 2025 BC Noticeboard - Quarterly Newsletter - Welcome - Important Notices & Reminders - Pet Consent Rules and Pet Bond: Upcoming Changes - Staff Update: Marjaana Kalliosalo - Know Your By-Laws: Common Property vs. Lot Property - Quick Tips: Label Your Letterbox and Intercom Clearly - Spring Maintenance Checklist - Stay Connected: Get weekly updates on our Facebook page! https://public2.bomamarketing.com/email/Wwl9 
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Good news!!  We’ve just released another brand-new resource: our Guide to Body Corporates (For New Committee Members). Whether you’re new to a committee or want to refresh your knowledge, this guide covers how body corporates work, your role and responsibilities, and how we support you as your Body Corporate Manager. Download it now from our new Resources Hub: https://www.cbcs.nz/resources-hub
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New Resource Alert: AGM Handbook Now Available! We’re excited to announce that we've just launched our brand-new Guide to Body Corporate AGMs - a practical, easy-to-follow handbook designed to support you through every step of the AGM process. Whether you’re attending your very first meeting or have years of experience as a committee member, this guide is packed with tips, insights, and handy information to help you feel prepared and confident. Download it now from our new Resources Hub: https://www.cbcs.nz/resources-hub This is just the beginning! We’re committed to building more helpful tools for our CBCS community. Got ideas for future resources? We’d love to hear them - send us a message or email us at admin@cbcs.nz.
By Ben Duflou July 16, 2025
Understanding what areas fall under common property versus individual lot property can help avoid confusion, especially when it comes to repairs, maintenance, or making changes. Here’s a quick refresher to help clarify who is responsible for what. Common Property: Managed and maintained by the Body Corporate. This usually includes: • External walls, roofing, and gutters • Driveways, visitor parking • Hallways, stairwells, lifts • Shared garden or recreational areas Lot Property: Owned and maintained by the individual lot owner. This generally includes: • Interior walls, flooring, ceilings • Fixtures (e.g., lights, taps, appliances) • Exclusive use areas (like courtyards or balconies), depending on your scheme Why it matters: Before making renovations or reporting an issue, it’s important to know whether it falls under your responsibility or the Body Corporate’s. If you're unsure, you can check your plan of subdivision or simply contact us on at 04 970 5435 - we're happy to help!
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By Ben Duflou June 20, 2025
Annual General Meetings (AGMs) are more than just a formality - they are your committee’s opportunity to review the past year, discuss upcoming plans, and make decisions that shape the future of your Body Corporate property. Here’s a quick checklist to help you prepare for a smooth and effective AGM: Review the agenda and supporting documents: These outline the items up for discussion and any motions that require your vote. Review the Financial Statements and Budget - Check the previous year’s accounts and the proposed budget for the coming year. Read the previous AGM minutes : A great way to catch up on past decisions and follow up on any ongoing matters. Consider nominations for committee positions: Your involvement can make a real difference in your Body Corporate community. Submit your voting papers: If you can’t attend in person, make sure your voice is still heard. Remember, your participation helps ensure the effective and transparent management of your scheme. If you're unsure of your AGM date or need assistance with your documentation, please don’t hesitate to contact our team on 04 970 5435 - we’re here to help.
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