I was told the new strata Schemes Management Act 2015 imposes an even greater responsibility on the owners corporation in relation to budgeting and financial management of the capital works fund. What’s changed? – Frank, NSW

Question: I was told the new Strata Schemes Management Act 2015 imposes an even greater responsibility on the owners corporation in relation to budgeting and financial management of the capital works fund. In what way has that responsibility changed? 

– Frank, NSW

Answer: Hi Frank, the acts that commenced in November 2016 do have more requirements about budgeting in line with the capital works fund. This includes having an audit and a 10 year capital works fund forecast that has to commence at the annual general meeting and every ten years after. This could include maintenance, timing and anticipation of works, the costs of works and the sourcing of the funds.