Guide
What body corporate levies pay for in Queensland
Body corporate levies pay for running and maintaining the scheme. In Queensland they are split between an administrative fund, which covers day-to-day costs such as insurance, regular maintenance and management fees, and a sinking fund, which covers capital and one-off items such as repainting or replacing fences. The AGM sets them each year from the budgets.
The administrative fund
The administrative fund pays for anything that is not required to come from the sinking fund, including:
- regular maintenance of common property, such as gardens, cleaning and pool servicing
- insurance premiums
- administrative costs such as body corporate management fees, postage and common-area electricity
The sinking fund
The sinking fund pays for capital and non-recurring spending, such as:
- painting the building or structural repairs to common property
- replacing major items such as common property fences or carpets
- other capital items, such as pool furniture
Money cannot be moved between the two funds. See sinking fund basics.
How your share is calculated
Levies are generally based on each lot’s contribution schedule lot entitlement, set out in the community management statement, unless the legislation says otherwise. In a building format plan, building insurance is shared by interest schedule lot entitlement instead.
How levies are set
The committee prepares both budgets, and they go to owners with the AGM notice. At the AGM, owners adopt the budgets by ordinary resolution and set the amount for each lot, the number of instalments and the due dates. If an unexpected cost comes up, a special contribution can be raised, which also needs an ordinary resolution.
Levy notices, discounts and penalties
- Owners must get written notice at least 30 days before a contribution is due.
- The body corporate may offer a discount for paying on time. The official guidance says it cannot be more than 20% of the instalment.
- Overdue amounts may attract simple penalty interest. The official guidance caps it at 2.5% a month.
- The body corporate can waive or reduce a discount or penalty, in full or in part, for special reasons.
What happens if levies are not paid
The body corporate can start recovery action once a contribution is overdue. If a debt reaches 2 years overdue, recovery action must start within 2 months of that date. Levy debts are pursued through QCAT as a minor civil dispute or through the courts, not through a BCCM adjudicator. Conciliation through the Commissioner’s office is available before recovery proceedings start.
Frequently asked questions
What is the difference between the administrative fund and the sinking fund?
The administrative fund covers day-to-day running costs such as insurance, regular maintenance and management fees. The sinking fund covers capital and one-off items such as repainting, structural repairs and replacing major items.
Who sets body corporate levies?
Owners, at the AGM. They adopt the budgets prepared by the committee by ordinary resolution and set the levy for each lot.
Sources
- Owner's contributions (Queensland Government)
- Administrative fund (Queensland Government)
- Sinking fund (Queensland Government)
- Body corporate budgets (Queensland Government)
Checked 22 October 2026. The law and official guidance change, so check the current source before relying on it. This page is general information about Queensland body corporate law, not legal advice. For advice about your situation, speak with a lawyer.