#13543

Yes, per s75A of the act all strata schemes need to prepare a 10 year sinking fund plan, finalizing it by the second AGM and updating it within 5 years.

The reason for a 15 year plan is that there will be items of expenditure not showing within the 10 year period, that the consultants will be recommending putting money away for as the anticipated life span of particular items is greater than 10 years.

This change in legislation came into play a bit over 5 years ago and is in an effort to avoid having those OC’s that keep their levies low and then some stage in the future, the poor suckers that own, have to raise a special levy to fix the problems of the past. Only problem is the act doesn’t require an OC to strike levies in accordance with the sinking fund forecast.