NSW legislation requires the preparation of a plan of anticipated major expenditure to be met from the capital works fund so why do plans always include maintenance costs which are not major?
Section 80 of the NSW legislation requires the preparation of a plan of anticipated major expenditure to be met from the capital works fund so why do plans always include maintenance costs which are not major and historically are to be charged to the Administration Fund?
A Capital Works Fund Plan serves the purpose in assisting a strata scheme to financially plan for the expected maintenance/replacement of capital works of a non-recurrent nature.
Items of a non-recurrent (greater than 12 month frequency) capital nature should make up a Capital Works Fund Plan. A Capital Works Fund Plan serves the purpose in assisting a strata scheme to financially plan for the expected maintenance/replacement of capital works of a non-recurrent nature. These items may fall due for replacement in 30- 50 years.
Like getting a car serviced when due, by maintaining these items they will serve their purpose better and last longer. For items of a recurrent nature, such as regular garden/ lawn maintenance, pool cleaning etc., these would be paid out of the administrative fund and should not form part of a Capital Works Fund Plan.
Log in to your existing Lookupstrata Account to download the printable file.
Dakota has spent 6 years in the property & strata industry, including managing a portfolio of luxury properties on the Sunshine Coast for a number of years.
More recently he has travelled around Australia & New Zealand delivering compliance updates and training sessions to Strata Managers and Strata Owners alike.
Dakota has also assisted the national chapter of SCA to deliver training courses to new strata managers throughout Australia as well as the NZ chapter. Dakota operates as a business development manager in a national role with Solutions In Engineering – Your Strata Compliance Specialists.
Dakota is a regular contributor to Lookupstrata.
Lookupstrata Directory
Looking for NSW Strata Specialist in your area? Search within our LookUpStrata Directory for the best list of contacts available
Search the directory
Comments
Log in to leave a comment