Sinking Fund Plans

from $385

Samples reports are available upon request

What is a Sinking Fund Plan?

A plan as to how the owners of a strata plan will repair and maintain common property and raise sufficient funds to cover the costs. The amount required for the 10-year plan will vary between schemes, for instance, newer schemes may require relatively less money than the plans for older schemes with more repair work due.

Do the owners need to get a Sinking Fund Plan?

Yes, from July 2009, all strata schemes in NSW are required by law to have a 10-year sinking fund plan in place (Section 75A of the Strata Schemes Management Act 1996 ).

The 10-year plan must be approved by owners at an annual general meeting (AGM) and must be reviewed and adjusted, if required, in the first five years.

What is the benefit of obtaining an Sinking Fund Plan?

A good plan should increase the value of your property by ensuring it presents well and is well maintained.

Our Australian designed and owned software provides flexibility in our sinking fund recommendations to ensure that you

Do not have excessive funds sitting around in the bank,
Have minimal but sufficient annual Sinking Fund contributions (no special levies)
The owners do not have to pay levies larger than are required.

Does a Sinking Fund Plan increase the amount that owners have to pay on an annual basis?

This is not a black and white answer, each sinking fund plan should reflect the individual needs of its scheme. On some occasions we have recommended a reduction in the amount being collected due to unnecessary sitting idle the account. An increase may be recommended if the current amount being collected is insufficient to address the projected requirements of the building and its surrounds.

Sinking Fund Plans (Aust) Pty Limited

We specialise in and are passionate about providing 10 Year Sinking Fund Plans which are compliant with s75A of the Strata Schemes Management Act 1996. Our Sinking Fund Plans are easy to read and understand. Please see the testimonials.

Owners corporation obligations – duty of care to owners as well as visitors. s62A(1) SSMA states “an Owners Corporation MUST properly maintain and keep in a state of good and serviceable repair the common property and any personal property vested in the Owners Corporation”.

Can Owners vary a sinking fund plan - S62(1) of Act – special resolution by owners to maintain particular items of common property they consider appropriate. This means that a strata plan must be in place but the committee may decide for example to defer some items such as repainting from the projected 3-5 years.

Sinking Fund Plans conducted in 2005/2006 with SP numbers 50000 and above are due for renewal in 2010.

Sinking Fund Plans conducted in 2006/2007 with SP numbers 30000 to 49999 and above are due for renewal in 2011.

Sinking Fund Plans conducted in 2007/2008 with SP numbers 10000 to 29999 and above are due for renewal in 2012.

Sinking Fund Plans conducted in 2008/2009 with SP numbers 10 to 9999 and above are due for renewal in 2013.

We suggest a Sinking Fund Plan be prepared every 2-3 years even though the legislation recommends every 5 years.

Following your instructions to proceed with the 10 year Sinking Fund Plan we will,

Inspect the subject property and identify likely items requiring replacement or maintenance within 10 years.
Provide the Owners Corporation (through you), with the opportunity to include additional items that they would like. ie renewal of landscaping, upgrading of any other common areas.
Completion and issue of the 10 year Sinking Fund Forecast with the recommended sinking fund amount to be set aside each year, the total amount to be expended throughout the 10 year term, including an allowance for the escalation of construction costs, and the likely timeframe for the maintenance or replacement of each item.
Photos of relevant replacement or maintenance items will be provided to you.
The 10 year Sinking Fund Forecast will be carried out by a Registered Valuer without limitation.

Our Sinking Fund Plans will identify various large cost and many minor cost capital works which may be required in the following 10 years

This includes maintenance, renewals and replacements as well as allowances for improvements requested by the owners.