While it is often thought that the strata manager sets the levies for a building, it is fact the owners who need to agree and vote on how much money is needed to run your building.
While the strata manager will certainly have a hand in the formation of a budget, the decision on how much to raise is determined by the owners.
Every year at the AGM, the Owners Corporation (the legal entity which is made up of all owners) must determine a budget of its expected expenses for the next year, as well as how much it should be ‘saving’ for future capital expenses.
This budget is generally worked on together by the strata manager and Treasurer, and presented at the AGM for owners to vote on.
Owners will determine at the AGM if the anticipated expenses for the year will meet the needs of the building, and agree to raise that amount.
The budget is determined annually, and usually levies are due in equal, quarterly payments, although this may not always be the case.