Strata Levies 2025: Essential Guide for Australian Apartment Owners

For millions of Australians living in apartments and townhouses, strata levies are a fact of life. These recurring fees fund everything from building insurance to lift maintenance, but in 2025, new policy changes and economic pressures are sending levies to fresh highs. If you own or are considering buying into a strata-titled property, understanding how strata levies work—and what’s driving recent increases—can help you avoid budget shocks and make smarter investment decisions.

Why Are Strata Levies Rising in 2025?

Across Australia, strata owners have seen levies climb by 8–15% in the past year, according to industry surveys. Several factors are converging to push up the cost of communal living:

• Insurance premiums: The cost of building insurance has surged, with some strata schemes facing double-digit increases due to climate risks and tighter underwriting criteria.

• Building compliance and defect rectification: Recent state reforms—especially in NSW and Victoria—require greater spending on compliance, fire safety, and defect repairs, particularly for buildings constructed in the last 15 years.

• Inflation and materials: General inflation has hit everything from cleaning contracts to lift servicing and gardening, compounding the strain on budgets.

For example, a Sydney apartment complex in Parramatta recently reported a 12% jump in its annual levies after being required to boost its sinking fund contributions and upgrade its fire safety systems in line with 2025 NSW regulations.

What Do Strata Levies Actually Cover?

Strata levies are more than just a line item on your quarterly statement—they’re the lifeblood of your building’s upkeep and long-term value. Typically, they fund:

• Administrative fund: Day-to-day running costs like cleaning, gardening, minor repairs, and management fees.

• Sinking (capital works) fund: Long-term repairs and upgrades, such as roof replacement, painting, and major system overhauls.

• Special levies: One-off charges for unexpected repairs or major projects, often due to compliance or defect issues.

In 2025, many strata committees are boosting sinking fund contributions to ensure buildings can meet new compliance standards and avoid surprise special levies. Owners are encouraged to review their building’s capital works plan and ask questions at annual general meetings to understand upcoming costs.

How to Manage Strata Levies and Protect Your Investment

With rising levies a near-certainty, proactive owners can take several steps to keep costs in check and preserve property value:

• Scrutinise budgets: Attend AGMs and review financial statements. Look for inefficiencies or areas where costs could be trimmed, such as renegotiating service contracts.

• Participate in decision-making: Volunteer for the strata committee or attend meetings to have a say on major expenditures and policy decisions.

• Support preventive maintenance: Investing in regular maintenance can avoid costly repairs and insurance claims down the track.

• Assess insurance: Work with brokers to ensure your strata’s insurance is comprehensive but competitively priced. Some schemes are opting for higher excesses to reduce premiums.

• Budget for increases: Factor in annual levy rises when assessing affordability—especially if you’re buying. Ask for the latest levy notices and capital works forecasts before signing a contract.

Property investors should also note that higher strata costs can affect rental yields and resale values. In some inner-city markets, buyers are already scrutinising levies more closely and factoring them into purchase decisions.

2025 Policy Updates Impacting Strata Levies

This year, several state governments have enacted or proposed changes with direct effects on strata budgets:

• NSW: New rules require more rigorous reporting of building defects, increased minimum sinking fund contributions, and higher transparency standards for strata managers.

• Victoria: Ongoing reforms are tightening rules on building maintenance schedules and safety compliance, pushing up administrative costs.

• Queensland: A review of body corporate legislation is underway, with early signals pointing to greater disclosure requirements and possible changes to how levies are set.

Owners should stay informed of local policy changes, as compliance costs are likely to keep rising through the decade.

The Bottom Line

Strata levies are rising fast in 2025, driven by policy reform, insurance inflation, and a sharper focus on building safety. While these costs can’t be avoided, informed owners can take action to manage their impact. By getting involved in your building’s financial decisions, scrutinising budgets, and planning ahead, you can keep your property’s finances on a healthy footing—no matter what the future holds.