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A special levy notice in your inbox (or letterbox) is rarely welcome. It means an unexpected bill — and for many lot owners, a lot of unanswered questions.
What is this for?
Can they do this?
Do I have to pay it?
The short answer to all three: yes, they can — and yes, you usually do. But there are rules. Here's how special levies work in Victoria.
In this guide
What Is a special levy?
A special levy (sometimes called a special purpose levy or extraordinary levy) is a one-off charge raised by an Owners Corporation (OC) to cover a specific expense that falls outside the ordinary annual budget.
Unlike regular maintenance levies, which are approved at the AGM and collected in regular instalments, a special levy is raised as needed and charged in addition to your normal fees.
When can an Owners Corporation raise a special levy?
An OC can raise a special levy whenever it needs funds that aren't available in the existing budget. Common reasons include:
- Emergency repairs to common property (burst pipes, structural failure, fire damage)
- Unexpected maintenance costs not covered by the maintenance fund
- Legal proceedings or VCAT applications
- Insurance excesses following a claim
- Capital works where the maintenance fund is insufficient
There is no minimum or maximum amount set by law — the levy can be whatever the OC determines is necessary to cover the expense.
Who decides to raise a special levy?
This depends on the amount and your OC's rules, but the general position under the Owners Corporations Act 2006 is:
For amounts within the committee's authority
If your OC's rules grant the committee authority to spend up to a certain threshold, the committee can vote to raise a special levy without calling a general meeting, provided the expenditure falls within that limit.
For amounts above the committee's authority
A general meeting is required, and the resolution to raise the levy is an ordinary resolution (more than 50% by lot entitlement). The meeting requires at least 14 days' notice.
⚠️ Emergency exception
In genuine emergencies — where immediate action is required to prevent further damage or risk to safety — a committee can authorise emergency expenditure and recover the cost through a levy, even without a prior meeting. The OC must be informed as soon as reasonably practicable.
How much notice do lot owners get?
There is no statutory minimum notice period specifically for special levy payment, but the levy notice must be issued in writing to all lot owners. In practice, most OCs give 30 days to pay, though committees can set a shorter or longer period depending on the urgency of the underlying expense.
If a special levy is approved at a general meeting, the meeting notice (at least 14 days) effectively serves as the earliest possible warning — so in practice, owners should expect at least 2–6 weeks between notification and payment.
What if I can't afford to pay?
Being unable to pay doesn't exempt you from the levy. Unpaid special levies accrue interest (currently set by the Owners Corporations Regulations) and the OC can pursue recovery through VCAT or the Magistrates' Court.
That said, if you're facing genuine financial hardship:
- Contact your strata manager immediately — don't wait for the due date
- Request a payment plan from the committee
- Document your situation in writing
✅ Tip
Committees generally prefer a payment plan to a VCAT application. The goal is recovery of funds, not punishment. If you communicate early, most committees will work with you.
Can I challenge a special levy?
You can dispute whether a special levy was properly authorised — for example, if the required resolution was never passed, or if the meeting process was flawed. A dispute can be lodged with VCAT.
However, you cannot dispute the levy simply because you disagree with the decision to spend the money, provided the resolution was properly passed. The majority rules in a properly constituted OC meeting.
How to avoid surprise special levies
The best defence against an unexpected large special levy is a well-funded maintenance fund. Under the OC Act, prescribed owners corporations (those with 51 or more occupiable lots) must maintain a 10-year maintenance plan and fund.
If your OC has an up-to-date maintenance plan and adequate reserves, most foreseeable capital works can be planned for in the annual budget — reducing the need for sudden special levies.