What's the difference between the admin fund and the capital works or sinking fund?
Flatflo editorial team · Last reviewed 2026-10-20
Quick answer
The administrative fund pays day-to-day running costs such as insurance, cleaning, utilities and small repairs. The capital works fund (called a sinking or reserve fund in some states) saves for major, less frequent work such as painting, roofing or replacing lifts.
The full answer
Most states require both funds, and many require a long-term plan for the capital works or sinking fund. Keep the funds tracked separately so owners can see what each is for.
General information only, not legal advice. Strata rules differ between states and change over time; check your state's law or get advice for your situation. Last reviewed 2026-10-20.
Related questions
How are strata levies calculated?Each lot pays a share of the approved budget based on its unit entitlement (or lot entitlement). The levy for a lot is the budget for each fund multiplied by that lot's entitlement, divided by the total entitlements of all lots.How do we set a strata budget?Start with last year's actual spending, add known costs such as insurance, cleaning, utilities and maintenance, then allow for long-term repairs. The committee prepares the budget and owners approve it at the general meeting, which then sets the levies.How do we chase unpaid strata levies?Send a friendly reminder first, then a formal overdue notice. If the levy is still unpaid, follow the recovery steps your state law allows, which may include interest and, eventually, legal recovery. Keep a record of every notice sent.What is a special levy?A special levy is an extra, one-off contribution owners pay when the budget doesn't cover an unexpected or large cost, such as urgent repairs. It's usually approved at a general meeting and shared by unit entitlement like regular levies.How can owners pay their levies?Owners usually pay by bank transfer into the building's account using a reference. With Flatflo, owners can also pay online by card or bank debit straight into the building's own account, and turn on automatic payments so levies are paid on time.