Can body corporate transfer funds between administrative levies and sinking fund levies if the funds are in the same bank account?
Can body corporate have one bank account for administrative levies and sinking fund levies combined, so if administrative levies are short, can the sinking fund money be used to pay administrative fund expenses?
– Brian, QLD
The body corporate can have one central bank account but may choose to have two funds – one for the admin fund and another for the sinking fund linked to it. However, they are not allowed to transfer the money between the administrative and sinking funds when either falls short. All payments from the administrative or sinking fund must be made from the single bank account where the funds are held.
Your body corporate can choose to hold the single account for the funds, in any financial institution such as a bank, credit union or a building society.
You may find more details on how your body corporate’s account is managed from the government website here.