Sinking fund (Capital Works fund)

A B C D E F G H I L M N O P Q R S T U V W

Money raised to this fund is for the cost of future capital expenses such as painting of common property, renewing, and replacing any fixtures, replacing, repairing or making good the common property, structural problem rectification and other capital expenses.

The budget for the forthcoming 12 months is usually the recommendation in the forecast, it is resolved at the AGM and is raised by ‘special levies’ on owners. A term that is now only used for community title schemes.

Strata schemes now use the term “capital works fund”.