What does my levy contribution pay for?

What does my levy contribution pay for?

  • The contribution (levy) charged to a unit will fund a proportionate share of the costs of running the communal areas, which includes the maintenance of the exterior of all units in the Scheme.

    • These costs may include, but are not limited to: security, intercoms, telephone, fire alarms, fire extinguishers, pool service and maintenance, cleaning, lighting, garden service and maintenance, general maintenance and repairs, service providers, etc.

  • The contributions cover the cost of the home insurance (body corporate / sectional title insurance), public liability insurance and fidelity fund insurance for the Scheme.

  • Auditing, tax submissions and financial administration fees for the Scheme are also covered by the contributions (levies).

  • Scheme rates and taxes (if applicable), common property water, refuse removal (if applicable), effluent costs for the common property, as well as common property electricity is covered by the contributions (levies).

  • It is a requirement of the new Act that all Schemes obtain, implement and budget for a Maintenance, Repair and Replacement (MR&R) plan (10 year plan).

  • The contribution to the MR&R plan may be indicated as a separate contribution line item on your monthly statements.


    • Related Articles

    • What does Levy-Maintenance contributions pay for?

      The Maintenance Levy must cover the items budgeted for in the 10 Year Maintenance Plan - (b) to establish and maintain a reserve fund in such amounts as are reasonably sufficient to cover the cost of future maintenance and repair of common property ...

    • Useful Sectional Title terms

      Residential Sectional Title Scheme A residential building or group of buildings where owners own "sections" of the building. Example: Block of flats or apartments; Townhouse Scheme. Section The internal space of the unit up to the windows, doors, ...

    • Levy Statement Line Items Explained

      The levies are made up of the items in the budget. Please refer to the AGM Notice folder on ANGOR Online. The budgets (Standard Levy and Maintenance Reserve Fund - where applicable) are contained in the AGM notice. In a Body Corporate (Sectional ...

    • What do Levy-Standard contributions pay for?

      The Standard Levy Contributions must cover the estimated annual operation costs - (i) for the repair, maintenance, management and administration of the common property (including reasonable provision for future maintenance and repairs); (ii) for the ...

    • What is a backdated levy?

      At the beginning of a new financial year the levy has to increase to cover increases in Body Corporate expenses. However, this increase may only be passed at an Annual General Meeting (AGM). Since the AGM can only be held once the audited annual ...