#25739
Lady Penelope
Strataguru

    Am not sure which State you are in …..

    The Admin Fund generally supports the day to day running of the property and day to day maintenance of common property, whereas the Sinking Fund supports major works and renovations.

    The Special Levy would have been raised because your scheme did not have enough money in the Sinking Fund to cover the cost of the renovation it. Once raised it should have been put in the Sinking Fund rather than the Admin Fund.

    In NSW in special circumstances money from the Admin Fund can be used to help support the Sinking Fund but the money should be paid back within 3 months. However, this transfer of money from the Admin Fund to the Sinking Fund is forbidden in QLD.

    Generally the Admin Fund should not contain more than 10% over the expected annual running costs of the Admin Fund. The Sinking Fund is the correct fund for accumulating excess money ready for use for future capital expenses.

    Strata finance and loans can also be considered if Special Levies are too burdensome.

    See here for NSW: https://www.strataplus.com.au/resource/sinking_administration_fund/