Saturday, December 5, 2020

Strata Schemes Management Act 2015 No 50

Part 5
Division 1
Section 74

Capital works fund | Section 74

(1) Establishment of fund An owners corporation must establish a capital works fund.

(2) Amounts payable to fund An owners corporation must pay the following amounts into the capital works fund—

(a)  the contributions levied on, and paid by, owners for payment into the fund,

(b)  any amounts paid to the owners corporation by way of discharge of insurance claims, unless paid into the administrative fund,

(c)  any amounts paid to the owners corporation under Part 11,

(d)  any amount received by the owners corporation that is not required or permitted to be paid into the administrative fund,

(e)  the proceeds of any investment of the fund.

(3)  An owners corporation may also pay the following amounts into the capital works fund—

(a)  any income of the owners corporation,

(b)  any amount that may be, but is not required to be, paid into the fund under this Act.

(4) Amounts payable from fund An owners corporation may pay money from its capital works fund only for the following purposes—

(a)  payments of the kind for which estimates have been made under section 79 (2),

(b)  payments made in accordance with this Division on a distribution of a surplus in the fund,

(c)  payments of amounts for the purposes of Part 11,

(d)  the transfer of money to the administrative fund or to pay expenditure that should have been paid from the administrative fund.

(5) Exemption An owners corporation for a strata scheme comprising 2 lots need not establish a capital works fund if—

(a)  the owners corporation so determines by unanimous resolution, and

(b)  the buildings comprised in one of those lots are physically detached from the buildings comprised in the other lot, and

(c)  no building or part of a building in the strata scheme is situated outside those lots.

© State of New South Wales Department of Customer Service. For current information go to www.nsw.gov.au.

Disclaimer: Reproduced from the Strata Schemes Management Act 2015 . This website does not give legal advice or other professional advice. You should seek legal or other professional advice before acting and not rely on any of the content on this website.

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