› Flat Chat Strata Forum › Strata Committees › Sinking Fund Plans › Current Page
A defect in the ACT’s legislation till a few years ago was ambiguity about whether the Sinking Fund Plan could be used to anticipate capital works to make improvements or was strictly for maintenance only. I became aware of this when our EC proposed to use sinking funds for a new piece of infrastructure, believed it had general meeting approval but some owners objected and sought to have the work halted. When the Act was being reviewed I put in a submission describing our situation and now the Act explicitly permits capital works to be for improvement, not just maintenance.
I guess calling it a Capital Works Fund might have avoided the argument we had. Or, does some other section of the NSW Act specify what types of Capital Works expenses may or may not be covered?