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…
NSW Fair Trading has confirmed that new requirements for Initial Maintenance Schedules (IMS) will begin on 1 April 2026. These reforms are designed to strengthen developer accountability and ensure new strata schemes start with realistic budgets, clearer maintenance obligations and better long-term planning. A key change is that IMSs are now standardised. Developers must use…
Question: Is there a formula for setting strata levies to cover scheduled capital works and avoid a shortfall? We have identified a situation where projected levies will result in a shortfall. There is no set “prudent” amount or accepted ratio for the determination of funds to be raised. For the purposes of the capital works…
Question: Does the Owners Corporation have to pay sufficient money from levies into the Capital Works Fund? I have just discovered no money has been paid into the Capital Works Fund where I live for the last 3 years. Around 240 people live in the building. Yes, the Owners Corporation must pay funds into the…
A LookUpStrata reader, who recently moved into a unit, wanted to know how he could get an entrenched and highly resistant executive committee to acknowledge their obligations under the new legislation, to have a 10 year plan, have it professionally costed and take immediate steps to raise the required funds to support it as well…
A LookUpStrata reader wanted to know whether the Executive Committee was bound to solicit and present three competitive quotes for any substantial work requiring Capital Works Funding. In summary, our response was that under the new strata legislation introduced on 30 November 2016 it appears that the need for three quotes is only a requirement for…
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