• What is a body corporate?
• What is common property?
• Can I make changes to my unit (for example install an air conditioner or pergola) without body corporate approval?
• Can I have a pet in my unit?
• Why do I have to pay levies?
• How are my levies calculated?
• Who decides how much my levies will be?
• What happens if I don’t pay my levies?
• Can the penalty be waived?

Answer: A body corporate is a legal entity created when land is subdivided and registered under the Land Title Act 1994 to establish a community titles scheme. The scheme can be a duplex, a residential unit block, a high rise accommodation complex, a shopping complex or a business park.
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Answer: The common property includes all parts of the complex that are not in a lot. Common property can include lawns, access roadways, stairs and infrastructure such as pipes and wiring.
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Answer: No. Any change to the external appearance of a lot must be approved by the body corporate.
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Answer: In some instances the body corporate by-laws prohibit absolutely the keeping of pets within a complex. Otherwise, an application can be made to the body corporate committee for approval to keep a pet.
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Answer: The Body Corporate must establish and operate both an Administrative fund and Sinking fund. The Sinking fund may be applied towards the spending of a capital or non-re-occurring nature and the periodic replacement of major items of a capital nature and other spending that should reasonably be met from the Sinking Fund. All other spending of the Body Corporate should be met from the Administrative fund.

The Sinking fund must allow for raising a reasonable capital amount both to provide for necessary and reasonable spending from the Sinking fund for the current financial year and must also reserve an appropriate proportional share of amounts necessary to be accumulated to meet anticipated major expenditure over at least 9 years after the financial year.

Every owner is a member of the body corporate and therefore must contribute to the Administrative and Sinking Funds.
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Answer: Each Lot within a body corporate has units of entitlement, often referred to UOE. These units of entitlement are recorded in the body corporate’s community management statement and are used to determine the amount of levies a lot owner will pay and the interest a lot owner has in the common property and in calculating the owners voting share (in the case of a poll vote). This number must be a whole number and cannot be zero. The levies for both the Administrative and Sinking Funds are calculated by the Units of Entitlement allocated to each Lot.

There are two schedules for entitlements:

Contribution entitlements - The Contribution entitlements should be equal except in the case where it would be inequitable for them to be equal. Prior to 2003, it was fairly common practice for Developers to allocate units of entitlement based on the size and position of the unit.

Interest entitlements - The Interest entitlements are calculated on the basis of property value and will differ depending on the properties value in relation to other lots within the building.
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Answer: At the end of each body corporate financial year the Committee sit down and consider the proposed expenditure for the coming year and prepare budgets to cover the expenses of the body corporate.

The owners, in General Meeting, are asked to resolve to adopt those budgets and set the levies for the following year.
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Answer: The Body Corporate has a responsibility to ensure that outstanding debt owed by an owner is collected. Each body corporate may provide for financial arrangements about discount and/or penalties relating to the payment of contributions and about the recovery of unpaid contributions.

The body corporate must give owners 30 days notice of a contribution due. Payment of the contribution amount is required to be received on the first day of the period of the levy. For example if the levy period is for 1 June to 31 August, the contribution is due to be paid on or before 1 June. If the contribution is not received the body corporate on the due date, the owner forfeits any discount that may apply. If the levy remains outstanding for more than one calendar month, a penalty interest may apply.

The cost of recovery is not borne by the body corporate, but is a cost that can be incurred by the offending owner in accordance with the legislation.
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Answer: An owner who has missed the due date for payment, but wishes to apply for the discount or waiving of a penalty must write to the body corporate committee with their request. Capitol Body Corporate Administration is not able to make this decision and will refer all requests of this nature to the Committee for consideration.
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