10 Year Maintenance Plans


10 Year Maintenance Plans are compulsory for all NSW Strata Schemes and any Victorian Scheme with 51 or more lots.


10 Year Maintenance Plans, also referred as: Sinking Fund, Capital Works Fund or Maintenance Plans, are a detailed plan that identifies anticipated maintenance, repair, renewal or replacement of both major and minor capital items within a strata scheme. Each plan identifies the expected cost to repair/replace over a 10-year period and allocates yearly contribution per lot entitlement.

10 Year Maintenance Plans identify and detail all required maintenance activity allowing for accurate and fair budgeting.
 
 

Victoria

Changes to the Owners Corporation Act come into effect December 2021. The changes make it compulsory for all Owners Corporations with more than 51 occupiable lots to obtain and maintain a 10-year maintenance plan.

Owners Corporation Act 2021
Part 2, Section 36
(1) A tier one owners corporation or a tier two owners corporation must prepare and approve a maintenance plan for the property for which it is responsible
(2) A tier three owners corporation, a tier four owners corporation or a tier five owners corporation may prepare and approve a maintenance plan for the property for which it is responsible

Part 2, Section 7A
(1) For the purpose of this Act, an owners corporation falls within one of 5 tiers as specified
(2) A tier one owners corporation is an owners corporation that consists of more than 100 occupiable lots and is not a services only owners corporation
(3) A tier two owners corporation is an owners corporation that consists of 51-100 occupiable lots and is not a services only owners corporation
(4) A tier two owners corporation is an owners corporation that consists of 10-50 occupiable lots and is not a services only owners corporation
(5) A tier two owners corporation is an owners corporation that consists of 3-9 occupiable lots and is not a services only owners corporation


NSW

As of July 2009, all NSW Strata Schemes are required by law to have a 10 Year Capital works fund in place.

Strata Schemes Management Act 2015
Part 5, Division 2, Section 80
(1) An Owners Corporation is to prepare a plan of anticipated major expenditure to be met from the capital works fund for a 10-year period commencing on the first annual general meeting of the owners corporation
(2) An owners corporation is to prepare a plan for each 10-year period following the 10-year period to which the first plan applied. The plan is to be prepared for the annual general meeting at which the period covered by the previous plan expires.
(3) An owners corporation may, by resolution at a general meeting, review, revise or replace a 10-year plan prepared under this section and must review the plan at least once every 5 year.
(4) A Plan under this section is to include the following - 
a. details of proposed work or maintenance,
b. the timing and anticipated costs of any proposed work,
c. the source of funding for any proposed work,
d. any other matter the owners corporation thinks fit,
e. any other matter prescribed by the regulations for the proposes of this section
(5) A plan under this section is to be finalised by the end of the next annual general meeting of the owners corporation after the annual general meeting for which the plan is prepared
(6) An owners corporation may engage expert assistance in the preparation fo a plan under this section
(7) An owners corporation is, so far as practicable (and subject to any adjustment under this section), to implement each plan prepared under this section