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I have a friend who lives in a complex of eight units in Brisbane, and they're currently faced with the prospect of issuing a special levy to cover the costs of replacing a lift motor. This is going to be in the region of $8k per unit.
I've heard of similar levies being distributed across units according to lift usage. That is, apartments on the ground floor who don't use the lift at all pay a far smaller proportion of the overall levy than those on the top floor who use the lift daily.
Does anyone have any experience or insight (from a Qld perspective if that differs to other states) into how this usually works? I understand that levies are usually divided according to unit entitlements, but that would seem a little unfair to me in this particular situation.
I appreciate any assistance.
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Firstly, the position of the unit in a building is often a factor in establishing unit entitlements (the basis on which levies are calculated). The higher you are in the building, chances are, the greater your levies.
There is no legal basis that I know of for charging everyone exactly the same amount (although this may be different in QLD).
I know of buildings with no lifts that contribute to adjoining parts of the same strata that do have lifts (townhouses next to high rises, for instance).
But the remedy for this is to have the unit entitlements adjusted so that the non-lift users pay less and this can be done by application to the CTTT or its state equivalent
Finally, if this work isn’t covered by warranty then it means the sinking fund has been neglected. It’s swings and roundabouts – if you don’t put the money away, it will eventually come back to bite you on the bum.
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Hi Jimmy & KB,
Sorry to correct your above post, but per s183 of the strata act (in NSW that is), you can only get an order to vary the units of entitlement in accordance with a market valuation of all lots, as at the date the strata plan was registered.
But i do question how all lots will have had equal market value to start with?
Mr S
I could and should have expressed that better. People on the ground floor should have lower levies because they should have lower unit entitlements. They should have lower UIs because their apartments are lower value (not because they use the lift less – although they obviously would).
That's the basis on which you would expect to be paying less in a special levy – that your apartment was less valuable. And if all the apartments have the same UI, that that can be challenged and adjusted if need be. But Mr S is right, it has nothing to do with the usage of the lifts or any other facility.
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