What is a sinking fund or capital works fund?
It's a long-term savings account the owners corporation builds up over years to pay for big-ticket items like painting the building, replacing the roof, upgrading lifts or recoating the driveway — without needing a special levy.
A 10-year capital works plan (also called a sinking fund forecast) is required in most states. A qualified consultant inspects the building, predicts when major items will need replacing, and recommends an annual contribution. Owners can adjust the recommendation but should think very carefully before underfunding it — the bill always comes due eventually.
By Reviewed by Last reviewed 2026-05-04
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From category: strata-basics