How to Read Your Strata Budget in 5 Minutes

9 Apr

Strata budgets can look confusing at first — all those line items, levies, and forecasts. But if you know what to look for, you can spot the essentials in just five minutes. Whether you’re an owner, investor, or committee member in NSW, here’s how to make sense of your strata budget fast.

1. Look at the Admin and Capital Works Funds

Every strata scheme in NSW must have two main funds:

Administrative Fund: For everyday costs like cleaning, gardening, insurance, and common electricity.
Capital Works Fund (previously known as the sinking fund): For long-term repairs like repainting, roofing, lifts, or driveway resurfacing.

🕐 Quick check: Are both funds present? Are they adequately funded compared to the building’s age and size?

2. Review Common Line Items

Skim through the major categories:

Cleaning
Electricity
Gardening
Insurance premiums
Strata management fees
Repairs & maintenance
Building compliance (fire inspections, window locks, etc.)

🕐 Quick check: Do the line items seem reasonable? Any surprises or spikes?

3. Compare Budget vs Actuals

Good budgets show what was spent last year compared to what’s planned this year. This gives you insight into how well the committee or manager is estimating costs.

🕐 Quick check: Are there consistent blowouts? This could mean under-planning or unexpected issues.

4. Spot Underfunded Capital Works

Your strata plan should have a 10-year Capital Works Plan (required under NSW legislation). If your capital fund contributions are low, your scheme might face a special levy down the track.

🕐 Quick check: Is there a realistic contribution for capital works? Or are future costs being kicked down the road?

5. Check for Hidden Fees

Some budgets bury charges under vague line items like “Consulting” or “Other.” Watch for:

Excessive strata manager charges
Duplicate service fees
Unexplained "compliance" costs

🕐 Quick check: Are fees transparent and itemised?

Final Tip: Ask for Clarification

If something doesn’t make sense — ask. As an owner, you're entitled to understand exactly where your levies are going. If you're constantly confused or feel like the numbers don't add up, it might be time to switch strata managers.

Jake Billett