Sinking Fund Health-Check Scorecard
Assess if your body corporate is adequately prepared for future major repairs
What Is a Sinking Fund and Why Does It Matter?
In Australian body corporate legislation, the sinking fund — called a capital works fund in NSW and a maintenance fund in Victoria — is the reserve account that owners collectively build up to pay for major repairs and replacements. Unlike the administrative fund which covers day-to-day running costs, the sinking fund handles the big-ticket items: roof replacement, lift refurbishment, external painting, pool resurfacing, and common area upgrades.
An underfunded sinking fund is one of the biggest financial risks for apartment owners. When a major repair is needed and there isn't enough money in the fund, the body corporate must either take out a loan or issue a special levy — an unexpected bill that can range from a few hundred to tens of thousands of dollars per lot owner.
The tool is tailored for all Australian states and territories — NSW, QLD, VIC, SA, WA, TAS, NT, and ACT — because fund names, contribution rules, and mandatory planning requirements differ between jurisdictions. To use it, have your body corporate's most recent financial statements on hand; all lot owners are entitled to these under their state's strata legislation.
What You'll Get:
- State-specific guidance Tailored for your state's terminology and legal requirements
- Three-color rating system Simple Healthy/Borderline/High-Risk scorecard
- Reserve adequacy assessment Based on building age and size benchmarks
- Actionable recommendations Specific steps to address funding gaps
Assessment Areas:
Join other owners making informed decisions about their body corporate's financial health