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Home » Levies » Levies NSW » NSW: Are Capital Works Funds Mandatory for NSW Owners Corporations?

NSW: Are Capital Works Funds Mandatory for NSW Owners Corporations?

Published March 27, 2026 By Allison Benson, Kerin Benson Lawyers Leave a Comment Last Updated March 27, 2026

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This article discusses NSW capital works fund requirements, explaining whether owners corporations must establish a capital works fund and how legislation allows fund borrowing between accounts.

Question: Are owners corporations required to have a capital works fund? Has new legislation been introduced in NSW allowing owners corporation to borrow money from the administration fund to pay for capital works?

Answer: In NSW, capital works funds are required by the Act to be established by owners corporations.

In NSW, capital works funds are required to be established under the Strata Schemes Management Act 2015 for strata schemes and under the Community Land Management Act 2021. You can resolve to use money from one fund for administrative fund purposes and not pay it back or only part pay it back.

This post appears in Strata News #708.

Allison Benson
Kerin Benson Lawyers
E: allison@kerinbensonlawyers.com.au
P: 02 4032 7990

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About Allison Benson, Kerin Benson Lawyers

Allison is a strata lawyer who has provided general strata advice, acted in strata disputes (including building defect disputes) and worked with clients in preparing and enforcing by-laws and strata management statements, since 2008. From 2012 onwards, Allison has acted exclusively on behalf of owners corporations and lot owners in respect of both strata and community association disputes and building and construction disputes.

Allison has extensive experience in commercial litigation and dispute resolution, having represented clients in contractual claims, interpretation of by-laws and rules, Home Building Act claims and levy recovery claims at all levels of court proceedings, including in the Court of Appeal and in the former CTTT (now the NSW Civil and Administrative Tribunal known as NCAT). Allison’s knowledge across a variety of strata schemes matters enables her to advise owners corporations, lot owners and other interested parties on a range of issues and to represent their interests both informally and before the courts.

Allison is a member of the Australian College of Community Association Lawyers (ACCAL), the Newcastle Law Society and the Society of Construction Law Australia. She holds a Bachelor of Laws (Hons) from Macquarie University and a Bachelor of Business from the University of Newcastle.
Allison's LinkedIn Profile.
Allison is a regular contributor to LookUpStrata. You can take a look at Allison's articles here .

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