If you are buying or living in an apartment, unit, or townhouse in Western Australia, you are likely to come across the terms “strata fees” or “strata levies”. These recurring charges can seem confusing at first, especially if you are new to strata living.
This guide breaks down how strata fees work in WA, including what they cover, how often they are paid, what happens if you fall behind on payments, and more.
KEY TAKEAWAYS
- Definition: Strata fees or levies are mandatory contributions for the maintenance and insurance of shared property in a strata scheme.
- Cost: In WA, standard strata fees range from $1,000 to $4,000+ annually per lot, depending on the building’s age and amenities.
- Coverage: While strata fees cover insurance, routine building maintenance, and the 10-year maintenance plan, individual water consumption is typically excluded.
- Tax: Fees are tax deductible for landlords but generally not for owner-occupiers.
WHAT ARE STRATA FEES OR LEVIES?
Strata fees, also known as strata levies, are mandatory contributions paid by lot owners in a strata scheme towards the cost of managing, maintaining, and insuring shared property and common areas.
Think of strata levies as the property’s collective bill. While a standalone homeowner is responsible for expenses such as roof repairs and garden maintenance, strata owners contribute towards shared costs such as building maintenance, lifts, stairwells, landscaping, swimming pools, gyms, and building insurance.
In Western Australia, strata schemes are governed by the Strata Titles Act 1985, which outlines how these fees are calculated, collected, and spent.
HOW MUCH ARE STRATA FEES IN WA?
There is no fixed amount for strata fees in WA, as costs vary significantly depending on the building and strata scheme. In WA, you might pay anywhere from $1,000 to $4,000+ per year for a standard apartment. However, luxury buildings with facilities such as concierge services, pools, or gyms are likely to have higher ongoing costs. For example:
- A standard apartment in Perth CBD can cost between $150– $250 or more per quarter.
- A luxury apartment in the Fremantle or Subiaco area can cost between $300–$600+ per quarter.
Several factors can influence the strata levies owners pay:
- Building age and condition: Older buildings often require more maintenance.
- Facilities available: Pools, gyms, security systems, and concierge services increase costs.
- Unit entitlement: Your contribution is based on your lot’s share of the scheme, typically determined by the unit’s size, value, and amenity.
- Insurance premiums: Building insurance can make up a significant part of a strata scheme’s budget, rising sharply in recent years.
- Special levies: Unexpected repairs or major upgrades may require a one-off contribution on top of regular fees.
WHAT DO STRATA FEES COVER?
Strata fees in WA typically contribute towards two main areas of expenditure: the day-to-day running of the scheme and planning for larger future costs.
Administrative Fund (Operating Budget)
The administrative fund covers day-to-day costs of managing and maintaining the strata scheme, including the items marked “Included” below.
Reserve Fund
The reserve fund helps cover larger, non-routine expenses that are likely to arise in the future, such as major repairs, renewals or replacement of common property.
Under WA law, strata councils are required to prepare a 10-year maintenance plan to ensure the reserve fund is adequately planned for future expenses.
WHAT IS TYPICALLY INCLUDED IN STRATA FEES?
Depending on the scheme, strata fees may cover:
- Building insurance: Covers property and public liability.
- Routine maintenance: Painting, gardening, and common area cleaning
- Strata management fees: Professional management costs.
- Common area utilities: Lighting, water for gardens/pools.
- Statutory compliance: Certificates and inspections.
- Reserve fund: Reserve money for long-term major repairs.
WHAT IS TYPICALLY NOT INCLUDED?
Owners are generally responsible for expenses relating specifically to their own lot, which may include:
- Individual water consumption
- Individual electricity
- TV subscriptions
- Private contents insurance
- Repainting the building exterior
- Replacing the roof or lifts
- Resurfacing car parks or pools
- Major structural repairs
DO STRATA FEES INCLUDE WATER RATES IN WA?
It depends on the strata scheme’s setup, in many WA strata schemes, water rates and usage are split between:
- Water rates (connection charges): Often included in strata fees as a shared cost.
- Water consumption (usage): May be metered individually, meaning each owner pays for their own usage directly.
The Water Corporation charges rates separately. Whether these flow through your strata fees or your individual bill is determined by your scheme’s setup. If you are unsure what applies to your property, check your strata scheme’s rules and your latest levy statement to see how water costs are handled, or speak with your strata manager.
HOW OFTEN DO YOU PAY STRATA FEES?
In Western Australia, strata levies are typically paid quarterly, although some schemes may require half-yearly or annual payments. The strata committee sets the payment schedule, and you will receive an invoice before each due date.
Do you pay strata fees in advance? Yes, this help ensure the scheme has the funds it needs to meet ongoing expenses. If you are moving into a strata property, you will need to pay your proportion of the remaining levies for the current financial period.
HOW TO PAY STRATA FEES
Payment methods vary by scheme, but common options include:
- Direct bank transfer: BPAY reference code printed on your bill, or BSB and account number
- Online payment portals: If your strata manager uses software like Buildium or StrataMaster
- Direct debit: Authorize automatic quarterly payments to avoid missing deadlines
- Cheque: Accepted by select schemes, though rarely used
Your strata manager or council will provide payment instructions with each invoice. Setting up recurring payments is the easiest way to avoid missed deadlines.
ARE STRATA FEES TAX DEDUCTIBLE?
For owner-occupiers, strata fees are not tax deductible. However, if you own a strata lot that is rented out, you can claim certain strata levies as a rental property deduction.
The Australian Taxation Office (ATO) considers strata fees an ongoing expense of maintaining a rental property, so landlords in WA can include them in their tax returns.
WHAT HAPPENS IF YOU DON’T PAY YOUR STRATA FEES?
Falling behind on strata levies can have financial and legal consequences under WA law:
- Interest and late fees: Your scheme’s rules may allow for interest to accrue on overdue amounts. The prescribed rate in WA is currently 11% per annum.
- Formal demand: The strata committee can issue a formal notice requiring payment.
- Legal action: The scheme may pursue you through the Magistrates Court or State Court for recovery of debts.
- Lien on your title: In extreme cases, unpaid levies can become a registered encumbrance on your property title, making it difficult to sell.
- Loss of voting rights: Some schemes restrict voting privileges for owners with outstanding debts.
FINAL TIPS FOR STRATA OWNERS IN WESTERN AUSTRALIA
Keeping an eye on your scheme’s finances can help you better understand your strata fees and how they are being used.
- Review your strata budget: Check the annual budget to see how funds are being allocated and what expenses are planned. Ask your strata manager for the latest financial statements.
- Question special levies: If a special levy is proposed, review the justification and get quotes if necessary.
- Stay informed: Attend general meetings and take part in major decisions that may affect your scheme and levies.
How Pro-Active Strata Management Can Help Strata Owners
Clear budgets, well-planned maintenance and straightforward communication can make strata ownership much easier.
If you are a strata owner and would like help making sense of your scheme’s finances or want a more proactive approach to managing your property, contact us today on (08) 9922 9391.
Frequently Asked Questions
What are strata fees in Western Australia?
Strata fees (or strata levies) are mandatory contributions paid by every lot owner in a strata scheme to fund the ongoing maintenance, management, and insurance of shared property and common areas. In WA, these are governed by the Strata Titles Act 1985.
How much are strata fees in WA?
Strata fees in Western Australia vary significantly. A standard apartment in Perth may cost between $1,000 and $4,000+ per year. Luxury buildings with amenities like pools and gyms can cost substantially more, typically ranging from $300 to $600+ per quarter.
What do strata fees cover?
Strata fees typically cover building insurance, public liability insurance, routine maintenance of common areas (gardens, lifts, hallways), strata manager fees, and utilities for shared spaces. They also cover the Reserve Fund for long-term major repairs.
Are strata fees tax deductible in WA?
For owner-occupiers, strata fees are generally not tax deductible. However, if you are a landlord renting out your property, you can claim strata fees as a rental deduction against your rental income.
Do strata fees include water rates in WA?
It depends on the strata scheme. In many WA schemes, water connection charges (rates) are included in strata fees as a shared cost. However, individual water consumption is often metered separately and paid directly by the owner.
What happens if you don’t pay your strata fees?
Failure to pay strata fees can result in interest charges, formal demands, legal action through the Magistrates Court, a lien placed on your property title, and the loss of voting rights within the strata scheme.
How often do you pay strata fees?
In Western Australia, strata fees are typically paid quarterly in advance, though some schemes may require half-yearly or annual payments.