Australian Capital Territory Current Acts

UNIT TITLES (MANAGEMENT) ACT 2011 - SECT 86

An owners corporation for a units plan may at any time, by ordinary resolution, amend its sinking fund plan to ensure that—

        (a)     the plan reflects expected sinking fund expenditure; and

        (b)     the total sinking fund contributions are sufficient to meet the expected sinking fund expenditure stated in the plan.

Example

An owners corporation for a units plan approves a sinking fund plan that sets a total sinking fund contribution of $15 000 for each year of the plan. Three years after approving the plan, the owners corporation finds out that major work is required to water and sewerage pipes in the common property at an estimated cost of $60 000. The owners corporation, by ordinary resolution, amends the sinking fund plan to include the additional expected sinking fund expenditure and require additional contributions of $10 000 a year for the remaining years in the plan. The total sinking fund contribution for each financial year after the amendment is $25 000.