Capital works funds

Every Owners Corporation should plan not only for today’s expenses, but also for the significant costs that arise throughout the life of the building. The Capital Works Fund exists to ensure these future expenses can be managed in a planned and financially responsible manner.

The fund is used for major repair, replacement and renewal of common property, including works such as:

• Roof replacement.
• External painting.
• Lift modernisation.
• Waterproofing.
• Driveway resurfacing.
• Fire safety upgrades.
• Building services replacement.
• Other significant capital expenditure.

Most NSW strata schemes are required to prepare a Capital Works Fund Plan covering at least the next 10 years. The plan forecasts future expenditure, helping committees establish appropriate levy contributions and avoid unexpected financial pressures.

A well-funded Capital Works Fund provides certainty for owners, protects property values and reduces the likelihood of large special levies when major works become necessary.

At Strata Real Estate Services, we help committees understand their long-term maintenance obligations, interpret Capital Works Fund Plans, prepare realistic budgets and ensure financial decisions support the ongoing condition and value of the building. With a qualified CPA on staff, we provide an additional level of financial expertise to support informed decision-making.