In 1885, the Royal Navy's Australian Squadron was raised to the status of an Admiral's command in recognition of the colony's growing importance. The colonial government bought "Wotonga" as residence for the Admiral of the Navy. The house was renamed "Admiralty House" and additions were made to the property. A second storey was added to the house, as was a colonnaded verandah. A neo-Gothic style gate lodge was also added to the grounds, as was a covered Admiral's Walk leading down to the berth for the Admiral's barge below.