Is there a plan to reduce levy levels in coming years? Northmarque’s levies appear significantly higher than comparable body corporates for what owners receive.

The Treasurer gave a detailed response. The scheme has had a turbulent period – legal issues with the previous caretaker, structural problems, and a depleted sinking fund. The budget has been set as lean as it can be while remaining fiscally responsible. In the short term, levies cannot be guaranteed to drop dramatically, as the sinking fund needs to be rebuilt to avoid future special levies. Pending works include pillar rectification, concrete subsidence, and carport repairs. The goal going forward is to forecast levies further in advance (similar to practices seen at other complexes). Insurance premium reduction – through proactive maintenance documentation demonstrating lower risk to insurers – is also being pursued actively.

Comparing levies across schemes

Comparing body corporate levies between different community title schemes is unreliable and often misleading. While a scheme without a pool or lifts might be expected to have lower costs than one with these facilities, this oversimplifies how levies are determined. Schemes vary widely in building age, existing structural issues, repair backlogs, insurance costs, safety compliance requirements and how well committees have planned for future expenses.

Northmarque may not have a pool or lifts, but we face other significant costs related to past maintenance issues, building condition and necessary repairs that other schemes may not have. Low levies may look attractive, but they usually mean maintenance is being put off rather than properly managed. Without examining each scheme’s specific history, facilities, maintenance plans, repair schedules, building defects and financial reserves in detail, levy comparisons tell you very little about the scheme’s actual financial health.

A recent Gold Coast case shows the serious risks of keeping levies too low for too long. After years of deferred maintenance, the building faced major structural problems and fire safety issues, with enforcement notices from Gold Coast City Council and Queensland Fire and Emergency Service. A building consultant declared the property ‘not fit for habitation’, and the body corporate now must fund approximately $10 million in repairs within six months through special levies. What started as attempts to keep regular levies low resulted in water damage, concrete deterioration and structural instability that will cost owners far more than responsible levies would have.

Across Australia, new owners who bought properties based on low levies have been ‘completely blindsided’ by special levies exceeding $20,000 to $50,000 per unit when years of underinvestment suddenly require urgent repairs. Higher levies may actually indicate responsible planning, adequate insurance and realistic budgeting, while low levies often hide maintenance backlogs, compliance failures or inadequate insurance that will eventually require expensive emergency funding.

Learn more about the risks of low levies and deferred maintenance, here are some recent articles on the topic: