Short answer
A capital works fund plan is a long-term forecast — covering at least the next 10 years — of the scheme’s major upcoming works and what they’ll cost, and how much needs to be saved so the money is there when the work is due. Under the Strata Schemes Management Act 2015 (NSW), an owners corporation must prepare one and keep it up to date, using it to guide how much to raise for the capital works fund.
What the plan forecasts
Big shared expenses are large but foreseeable — repainting, replacing a lift, re-roofing, resurfacing, major structural repair. The plan lists the significant works expected over the coming decade, estimates the cost and timing of each, and works out the contributions needed to build the fund up to meet them. It looks at least 10 years ahead so the scheme is saving toward the next major job well before it lands.
Why schemes must have one
The plan is what turns the capital works fund from a guess into a system. Without it, a committee can under-save for years and then face a sudden special levy when a big job arrives — a bill owners haven’t budgeted for. A current plan lets the owners set steadier levies that build the fund gradually, so major works are funded from savings rather than emergency contributions.
Keeping it current
The plan isn’t a one-off document. It should be reviewed and kept up to date — as costs change, works are done, or new needs emerge — so the numbers it drives stay realistic. A plan that’s years out of date can be as misleading as no plan at all, because the contributions it justifies no longer match what the building actually needs.
Turning the plan into levies that add up
A capital works plan only protects owners if its forecast flows through to the right contribution each year, reviewed as things change — and that link is where a self-managed scheme often loses the thread. Straita helps a committee keep the 10-year picture and the levies in step: projecting the fund forward, showing where a shortfall is building, and connecting the plan to what actually gets raised — so major works stay funded from savings, not surprise special levies.
Primary sources
- Strata Schemes Management Act 2015 (NSW) — the capital works fund and the 10-year plan requirement (ss 74–80).
- NSW Government — Strata schemes (Fair Trading) — capital works fund planning.