What is a special levy, and how do you see one coming?
A special levy is a one-off charge the owners corporation raises when the normal funds run short. Here's what triggers one, what it can cost, and how to spot the risk before you buy.
What it is
Strata schemes run on two funds: the administrative fund for day-to-day costs and the capital works (sinking) fund for big repairs. When a cost is bigger than those funds can cover, the owners corporation votes to raise a special levy: a one-off charge split across every lot.
Unlike your regular quarterly levies, a special levy is unpredictable. It can be a few hundred dollars for an unbudgeted repair, or tens of thousands per lot for major rectification.
What triggers the big ones
The expensive special levies almost always trace to the same causes: waterproofing failure, combustible cladding rectification, structural or facade defects, and fire-safety upgrades. These are exactly the matters that end up in the tribunal or under a Building Commission order.
That is why a building's litigation and orders history matters to a buyer. A scheme fighting a builder over defects, or sitting under a rectification order, is far more likely to strike a special levy you will help pay.
How to see it coming
The strata report (a section 184 search) is where you confirm the fund balances, the 10-year capital-works plan, and any levy already proposed in the minutes. Get one before you exchange.
Before that, the public record gives you an early read for free. Search the scheme on StrataAuditor to see whether it has tribunal matters about levies, repairs, or defects, and whether the Building Commission has an order on it. A quiet record is reassuring but not a guarantee; a noisy one is a clear signal to dig deeper.
Check a building's public record now, free.
A starting point for due diligence, not legal or financial advice. Obtain a strata search (section 184) and professional advice before you transact.