Is it normal for admin fund contributions to be higher than sinking fund in small strata schemes?

With levies, the key factor to remember is that they are determined by owners at the AGM. At that stage, a budget is presented based on the anticipated current and future needs of the plan and owners vote on whether to approve that budget or amend it. At most AGMs, there is usually some discussion as to the general finances of the plan, spending plans for the future and why there may be changes to the rates so that owners can make an informed decision about the levy rates they are determining.

It’s not unusual to see admin fees fluctuate and the totals contributed to the admin fund usually exceed the amount to the sinking fund. However, every building and owners group is different and the structure of any individual budget will depend on the needs of the building.

The AGM notice and minutes should give you an idea of why costs may be increasing, but if that doesn’t answer the question, you can always ask the body corporate manager or committee for an explanation.