How are body corporate budgets set?

The committee prepares draft budgets for both the administrative fund and the sinking fund before the AGM. **Administrative fund budget:** Covers expected day-to-day expenditure for the coming year — insurance, management fees, routine maintenance, utilities for common areas, and administration costs. **Sinking fund budget:** Based on the 10-year sinking fund forecast. Sets aside funds for future major expenditure such as repainting, roof replacement, and resurfacing. The draft budgets are included in the AGM notice sent to all owners. At the AGM, owners vote to approve (or reject) each budget. Once approved, the committee determines the quarterly levy amounts required to fund the budgets and issues levy notices. Owners can ask questions about the budget at the AGM and submit motions to amend it before it is voted on. This article is general information only and not legal advice.