2026 Capital Works Fund (CWF) Changes: New Standard Form Explained

From 1 April 2026, important changes to NSW strata legislation will affect how Capital Works Fund plans are prepared and presented, particularly for new developments and schemes due for review. This article focuses specifically on Capital Works Funds (CWF) as part of the broader changes to the standardised Initial Maintenance Schedule.

These reforms aim to improve long-term financial planning, ensure realistic maintenance funding from day one, and reduce the risk of sudden special levies.

A New Mandatory Standard Form

From April 2026, all new or reviewed 10-year Capital Works Fund plans must be completed using a mandatory standard form issued by NSW Fair Trading.

This applies when a scheme is:

• preparing a new 10-year plan
• reviewing an existing plan (which must occur at least every five years)
• replacing a plan that has reached its 10-year lifespan

Schemes that already have a current plan do not need to update it immediately. However, once the next review is due, the new standard form must be used.

This standardisation mirrors recent changes to Initial Maintenance Schedules and is designed to improve consistency, transparency and funding accuracy across strata schemes.

New requirement for the First AGM

A key change affects new strata developments.

From 1 April 2026, the original owner (usually the developer) must obtain a compliant 10-year Capital Works Fund forecast before the first AGM and include it in the proposed budget.

Previously, schemes often relied on estimates and obtained a formal forecast later. This will no longer be permitted.

This ensures owners start with realistic levy contributions and a clear long-term funding plan from day one.

Stronger Link with Initial Maintenance Schedule (IMS)

The new rules also reinforce the connection between the Initial Maintenance Schedule (IMS) and the Capital Works Fund plan.

The IMS identifies maintenance needs and expected costs for common property assets, which then inform the long-term funding forecast.

Together, these documents form the foundation of early financial planning for new strata schemes.

What Schemes Should Do Now

Strata managers, committees and developers should begin preparing early by:

• familiarising themselves with the new standard form
• checking when their next 10-year plan review is due
• ensuring upcoming updates use the new format
• engaging qualified experts where needed for accurate forecasting

A digital Capital Works Fund Planner is also available through Strata Hub to assist with preparing compliant plans.

Why these changes matter

The Capital Works Fund plays a critical role in protecting property value by ensuring funds are available for major future repairs and replacements.

Well-funded schemes are far less likely to face large unexpected special levies or deferred maintenance risks. By requiring standardised plans and early forecasts, these reforms aim to create more financially sustainable strata schemes across NSW.

Download our Checklist

It covers what to prepare before completing the IMS how to fill in the Standard Form correctly, the extra steps for multi-storey schemes, and what must be provided 14 days before the first AGM.

If you have projects completing in 2026, contact us early so we can help you meet the new requirements smoothly and efficiently.

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