Body corporate fees are raised to maintain and enhance the asset. The asset includes the building and amenities in the boundary of the complex. The funds are utilised for two purposes
1) Administration fund is determined annually at the AGM ( Annual General Meeting ). The Level of fee is determined by your body corporate budget requirements. Such as onsite management fees, amenities ( like swimming pools, electronic security, tennis courts, gyms and public area amenities ) and utility costs ( power, gas ). This fund also includes repair costs i.e repairing a pool pump, doors, windows, gardening etc..
2) Other asset of a capitol nature are budgeted for in your sinking fund also determined at your AGM. The purpose of the sinking fund is for capitol expenditure in the future. Capitol expenditure is based on expected replacement costs for deteriorated structures. i.e Removing a tree, total replacement of fence, guttering etc.
These combined fees make up your total levy who’s funds collectively are used for improvements and maintenance of your assets.