NSW Introduces Mandatory Digital Capital Works Fund Planner
Note: This article is intended as a general guide only, and should not be taken as legal or professional advice. It’s essential to consult with a qualified professional or seek advice from your managing agent if you have specific questions or concerns about strata living.
To assist strata owners with making informed decisions about how they manage maintenance on their property, the NSW Government has released a mandatory digital capital works fund plan that must be used from April 1 2026.
The Capital Works Fund Planner, available through the online Strata Hub, “lets you record a 10-year capital works fund plan for managing the common property of a strata scheme in NSW.”
The purpose is to ensure long-term maintenance and major repair costs are properly forecast and funded for the next 10 years, with in-built cost estimates and calculations to help account for inflation and contingencies.
The planner supports financial planning and the allocation of money from the capital works fund. Formally known as a sinking fund, the capital works fund is a pool of money set aside by owners to cover significant repairs and upgrades in the future.
The Word version is easily downloadable to your computer or laptop with clear fields to enter the details of your scheme. It’s illegal to change or amend the text on the form.
The steps to complete the form are intuitive:
- Step 1: Create a new plan
- Step 2: Enter the capital works fund information including current balance and number of unit entitlements
- Step 3: Add expected costs, including current estimates and the years the costs apply
- Step 4: Finalise the details including contingency values and building cost inflation
- Step 5: Complete plan by calculating total expenditure and updating revenue
Once completed by the strata managing agent, the secretary, chairperson or independent expert, the form should be considered at the next annual general meeting. Prior to approval, the draft plan can be saved and edited.
The plan can be viewed at any time through the Strata Hub and must be reviewed every five years, with any changes approved at an annual general meeting.
Long-term planning in strata isn’t optional - it’s essential. While use of the form is mandatory, at Netstrata we believe its use will assist owners corporations to:
- Avoid sudden surprises: By forecasting major works like re-roofing, common area upgrades or repainting far in advance, your scheme is far less likely to face large special levies unexpectedly.
- Set realistic levies: Your committee can use the plan to inform annual budgets and levy contributions, helping owners understand and contribute fairly to the future of the building.
If you have any questions about preparing or reviewing your capital works fund plan, your Strata Manager at Netstrata can guide you through the process and help ensure your scheme remains compliant.
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