Each body corporate must prepare a sinking fund budget to cover each financial year.

The sinking fund budget must:

• provide for necessary and reasonable spending  for the financial year
• reserve an amount to meet likely spending for at least 9 years after the current financial year.

In the 10 year period, it must allow for:

• likely spending of a capital or non-recurrent nature (e.g. painting of a building)
• replacement of major capital items (e.g. replacing a boundary fence)
• other costs that should reasonably be met from capital.

The fund must decide the amount to be raised from contributions to cover the expected capital costs

Planning ahead

A body corporate needs to budget for major capital spending for the current financial year and the next 9 years.

We specialise in sinking fund forecasts.

We have the interests of the owners at heart.

We wont hide anything, so that we make it easy to understand and prioritise what is required.

We back it up with detailed site photographs and explain the maintenance clearly.

We suggest that a 15 year forecast be completed to ensure all parties are aware of future expenditure that is often missed in a 10 year cycle. We provide this as part of the total package at no extra cost.

We suggest this forecast be reviewed every 3 years.

We work closely with all parties and pride ourselves on accuracy and advise.

We want your property to last and be well maintained; so that you come back to us for a renewal. We hope very much that you will do this and hence offer a reduced 10% fee when we have completed the initial forecast.

We are here to help and be a partner to establish a long term relationship.