On 1 May 2006 an amendment was made to section 75A of the Strata Schemes Management Act 1996, which now states that all new strata schemes established from 7 February 2005 are required to prepare a 10-year sinking fund plan.

The effect on older strata schemes stemming from the May 2006 Regulation is that schemes will be gradually brought within the 10-year planning obligations according to its strata plan number. By July 2009, all schemes (except those 2-lot schemes that are not required to establish a sinking fund) will require a sinking fund forecast to be established.
The aim of our Sinking Fund Forecast service is to provide a forecast, which will avoid most of those unexpected levies, by distributing the cost evenly over all owners and eliminating the unfair burden on the current owners. 

A Sinking Fund Forecast prepared by Walton Smith Consultants will:

• Better manage cash flow
• Ensure that sufficient money is allocated to cover maintenance and capital costs.
• Identify existing defect or maintenance issues
• Forecast likely maintenance and capital works cost over a ten year period
• Identify likely defects before they occur
• Retain or improve re-sale values
• Help in maintaining the good condition of buildings