Posted:  23 March 2020.    Updated:  2 February 2021

Q.     What is the Owners Corporation?

The Owners - Strata Plan No. 80325 was established under the NSW Strata Schemes Management Act in May 2008 upon final registration at the Land Titles Office (NSW).  All lot Owners form the Owners Corporation.  The Owners Corporation is responsible for the management and maintenance of all Common Property, e.g. those parts of the whole site that do not form a lot.

Q.     As an Owner do I get to vote on matters?

Yes.  Most matters are handled by a simply majority vote of financial Owners - one per lot.  In some circumstances, as lot sizes vary, it may be necessary to have votes received counted on a Unit Entitlement basis.  Your unit entitlement is listed in a Schedule on the Registered Strata Plan.

Q.     What do you mean by "financial"?

To be financial an Owner needs to have paid ALL owners corporation levies prior to commencement of a meeting in which one or more motions are being considered.

Q.     What are Owners Corporation Levies?

The Owners Corporation is required, on an annual basis, to determine what funds it may require to pay annual expenses for the forthcoming year (Administrative Fund) and what moneys it needs to put aside to meet future expenses that do not fall due on an annual basis, e.g. re-painting the building (Capital Works Fund).  At the Annual General Meeting these amounts are agreed upon by voting Owners and then divided up on a unit entitlement basis.  These amounts then become due and payable as and when the Owners decide but at least during the financial year being considered.

In circumstances where the Owners Corporation decides that it is unable to meet all financial obligations from normal levies it may decide to raise a Special Levy for one or more purposes.

Q.     What do Annual Expenses include?

Common annual expenses are building and other insurances, electricity, minor repairs and maintenance, Strata manager fees and charges, meeting costs, etc.

Q.     What are Capital Works?

Capital Works are normally the major repair and maintenance of common property items such as roof repairs, building painting, etc.  They can also include planned, agreed and approved improvements to an apartment complex, e.g. installation of a swimming pool.

The Owners Corporation is required to have a 10 year Capital Works Plan that identifies likely major maintenance works and their estimated costs.  This plan forms the foundation from which the Capital Works Fund levies are determined.  The plan must be reviewed periodically - certainly at least every 5 years.