It’s a question that begs an answer. Why are special levies more “popular” in Queensland?
That’s “popular” in inverted commas. For most owners, the sudden shock of a large, unexpected bill is about as welcome as a tax audit or root canal therapy.
Yet far more bodies corporate in Queensland use special levies to fund major projects than anywhere else in Australia.
In most respects, Queensland is not that different. Like the rest of the country, buildings carry hidden defects from when they were built or suffer the ravages of time. The tropical climate we love, unfortunately, makes buildings harder to maintain – salt air accelerates corrosion and spalling, cyclone risk increases across the north and the beating sun we all love breaks down the paint that protects a building from the elements.
What differs for bodies corporate is the choice between the three funding options – drawing down a sinking fund, raising a special levy or taking out a loan.
At Lannock, we make a compelling case that a strata loan is always the best way to fund major remedial works.
Strata corporations often opt for a mix of all three to accommodate the different views of owners.
In Queensland, a strata loan has to clear a much higher voting threshold than a special levy, which goes a long way to explaining why special levies are so “popular”. Accommodation and Commercial schemes have more flexibility, but for most residential bodies corporate, the bar is set higher than almost any other decision the scheme can make. The only other decision at the same level is selling part of the common property – and even knocking the building down for redevelopment can go ahead with 25 per cent of owners opposed.
That’s a legislative reality, not a reflection of whether a loan is the right funding option for QLD bodies corporate. It just means committees need to make the case to owners earlier, more clearly and with better information – which is exactly what the best committees are doing on all important agenda items.
No wonder many Queensland committees will not even consider a loan. A special levy can be raised with a simple majority in an ordinary resolution. That grumpy owner in lot 17 has little chance of derailing the plan.
Even worse, some owners will defer major remedial projects altogether.
Kicking the can down the road tends to compound the initial problem and blow out the budget with
- growing repair scopes
- urgent compliance pressures
- stress on committees and managers
- greater risk in the long-term condition and value of the building
That is why more and more committees are making the case to owners for strata loans, simply because they make much more sense than the alternatives.
Once all the facts are laid out, owners get on board when they see how a loan is typically the best way to go.
Delays – and the inevitable increase in costs that goes with them – can be avoided with a mature, informed discussion at the outset, when the problems first become apparent.
Owners should be given every opportunity to have their say and make sure their interests are part of the conversation.
Raising funds for anything from a $10,000 paint job to a multi-million-dollar structural fix hits every “hip pocket” differently.
A committee is legally bound to act in the “best interests” of all owners, but when it comes to a major financial decision, that can be very different for:
- The Retiree: On a fixed income and budget
- The First Home Buyer: Cash poor after raising a deposit
- The Family: Stretched by interest rates, groceries and daycare
- The Downsizer: New to strata and high expectations
- The Investor: Predictable costs, reliable tenants, tax
We can structure a funding facility to be drawn down as the work progresses. Interest is only charged on funds used. Flexibility includes interest-only periods of up to 2 years, terms of up to 15 years and the ability to repay the loan early.
With a well-structured loan, future owners will contribute to the cost of repairs or upgrades as well as reap the benefits.
And work can start quickly at today’s rates.
Calculate, Compare and Score Your Levies with LevyPlanner.
Australia’s first tool to calculate and score the real cost of every funding option: for any scheme, any mix of owners, any capital works plan. Enter your scheme details and owner profile; LevyPlanner instantly calculates and visualises the pre-tax and after-tax cost of each option, and scores them against the best and worst possible outcomes. Built by Lannock, modelled by financial mathematicians and reviewed by Australia’s foremost strata tax accountant.
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This post appears in the June 2026 edition of The QLD Strata Magazine.
Jason Triplett
Lannock
E: jason@lannock.com.au
P: 04 6777 7272
Richard Claus
Lannock
E: rich@lannock.com.au
P: 04 1703 0871
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