What is a sinking fund in a body corporate

QLD
Levies & Finance
question
Lookupstrata community member

Should the cost of a sinking fund forecast be paid from the sinking fund or the admin fund?

answer
William Marquand
William Marquand Tower Body Corporate

As long as the payment allocations are consistent, in line with the budget and make sense to owners.

Reports like this are usually budgeted into and paid for from the admin fund.

However, it is not an absolute rule. You may hear differing opinions on allocations to each fund if you speak to different managers. There’s a certain logic in paying for the sinking fund report from the sinking fund.

The key thing is that payments are allocated consistently, align with the budget, and make sense to owners.

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