Disbursements: Understanding what they cover and why they matter to you
For all of us at Australian Strata Management, our purpose is simple: to help your community thrive. We know that managing your Owners Corporation involves more than just meetings and minutes. It’s also about the practical, everyday details that keep things running smoothly. This guide is a friendly reminder of what disbursements are and why they are an essential part of managing your community.
Your disbursement fee is separate from your management fee
Your strata management fee covers the professional work and expertise of your strata manager. This includes their time for things like compliance advice, financial reporting, and maintenance coordination. Your disbursement fee, on the other hand, is a separate charge that covers the essential, operational costs needed to administer your strata scheme. Think of them as the out-of-pocket expenses that we incur on behalf of your Owners Corporation throughout the year.
What your disbursement fee may include
Your annual fee includes a transparent line item for disbursements to cover a range of running costs. This is a fixed annual fee that may be reviewed each year to reflect any cost increases. Your disbursement fee covers things like:
- Document and administration costs: This includes the physical costs of producing important documents, like AGM packs, levy notices, and meeting minutes. It also covers the postage charges for mailing printed materials to owners who prefer paper-based communication.
- Secure record keeping: This includes the expenses for both physical and digital storage of your Owners Corporation’s records, ensuring everything is securely backed up and never lost.
- Communication and technology: Your fee helps cover the daily costs of communicating with owners, committee members, and contractors via telephone and email. It also supports the technology we use, including your owners portal and other administration tools that run your scheme smoothly and securely.
The value of your disbursement fee
Your disbursement fee is a transparent, flat amount with no hidden extras. It ensures the core administration of your Owners Corporation continues without interruption. This fee is reviewed annually and is only increased when genuinely necessary.
We believe in keeping things fair and simple so that you and your community can continue to thrive. If you have any further questions about how disbursements are used, please reach out to your local Australian Strata Management branch.