Short answer
A strata budget is the scheme’s estimate of what it will spend for the year, split across the administrative fund and the capital works fund. The owners corporation sets it — the committee (or a strata manager) usually prepares a proposed budget, but it only becomes real when the owners approve it, and set the levies that fund it, at the annual general meeting.
What’s in the budget
Estimates for the year ahead across the two funds:
- Administrative fund — recurring running costs (insurance, cleaning, utilities, minor repairs).
- Capital works fund — contributions toward major, long-term works (guided by the scheme’s 10-year capital works plan).
Who prepares it, who approves it
The committee or the strata manager typically drafts the numbers, but the owners corporation approves them at the AGM — and at the same meeting determines the contributions (levies) needed to fund them. So the owners have the final say on both what’s spent and what they’re charged.
Making the budget solid
A good budget is grounded in the scheme’s real obligations and its capital works plan, not guesswork. A system such as Straita keeps the funds, the spend and the capital works plan in one place, so the committee can build and approve a budget that actually reflects what the building needs — and see the levy impact before the vote.
Primary sources
- Strata Schemes Management Act 2015 (NSW) — estimates of amounts to be credited to the funds, and determination of contributions at general meeting.
- NSW Government — Strata schemes (Fair Trading) — budgeting and levies.