STRATA SCHEMES MANAGEMENT ACT 2015 - SECT 74
Capital works fund
STRATA SCHEMES MANAGEMENT ACT 2015 - SECT 74
Capital works fund
(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.
