Does a 15-Year Capital Works Fund Plan Meet Legal Requirements?

Section 80 Owners corporation to prepare 10-year capital works fund plan

1. An owners corporation is to prepare a plan of anticipated major expenditure to be met from the capital works fund for a 10-year period commencing on the first annual general meeting of the owners corporation.

3. An owners corporation may, by resolution at a general meeting, review, revise or replace a 10-year plan prepared under this section and must review the plan at least once every 5 years.

Given the information supplied, the 15 year plan mentioned appears to be a plan under subsection (1). If a 10 year plan is provided, then it will be a 9 year plan after 1 year and so on. Owners are required to review their 10 year plan every 5 years – which means they will only have a 5 year plan at that stage. So to avoid annual reviews and to maintain a 10 year plan at all times - a 15 year term is selected.

A 15 year plan simply provides more information than a 10 year plan, it will not impact the quantum of the levy or the cost of the report.

I trust that the above is of assistance, however should any further information be required please do not hesitate to contact the undersigned.