The Sinking/Capital Works Fund is a document set up to establish a reserve of funds to cover future expenditure for the replacement and/or maintenance and repair of building components at the end of their expected life.
The sinking/capital works fund budget will fix the contribution amount required to cover the capital expenditure required to maintain the building over its effective life.
Sinking Fund Forecasts must satisfy the current requirements of the Body Corporate and Community Management Act 1997 (QLD) and Strata Scheme Management Act 1996 ( NSW). All Strata Schemes are required by law to a Forecast/Fund in place. The Forecast/Fund is based on a reasonable estimate of the expected life of the components listed in the report.
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