Short answer
The administrative fund is the pool of money a strata scheme uses for its regular, day-to-day running costs — insurance, cleaning, gardening, common-area power, the managing agent’s fee (if any), and minor repairs. Owners contribute to it through their regular levies.
What it pays for
The recurring expenses that keep the building running month to month: insurance premiums, cleaning and gardening contracts, utilities for common areas, minor repairs, and general administration.
Kept separate from the capital works fund
The admin fund is for this year’s running; the capital works fund is for major future works. They must be held separately, and money can’t move between them without a formal resolution — see Admin Fund vs Capital Works Fund.
Keeping it in balance
Setting the admin-fund levy so it covers the year without over- or under-charging owners takes an accurate budget. A self-managed scheme can build and track that budget with a system such as Straita — seeing real running costs against what’s collected — so the committee sets levies with confidence.
Primary sources
- Strata Schemes Management Act 2015 (NSW) — the administrative fund and the two-fund requirement.
- NSW Government — Strata schemes (Fair Trading) — the administrative fund.