Strata & apartments
The sinking fund: planning for major works
A sinking fund - also called a capital works fund in NSW - is money set aside over time for future major works and repairs in a strata building. Think of it as the building’s savings account for big, infrequent expenses.
What a sinking fund pays for
- Repainting common areas and the building exterior
- Roof and waterproofing works
- Lift replacement or major servicing
- Driveway and common property repairs
- Rectifying structural defects
Why the fund’s health matters to you
A well-funded sinking fund means the building can pay for major works from savings. An underfunded fund often means a special levy - a one-off bill for each owner - when something inevitably needs fixing.
Before buying an apartment, ask about the balance of the capital works fund and the 10-year capital works plan. It tells you a lot about the building’s future costs.
Sinking fund vs capital works fund
They are the same thing under different names. NSW uses "capital works fund"; many other states and owners traditionally say "sinking fund". The purpose is identical: saving for major future works.
Frequently asked questions
Is a sinking fund the same as a capital works fund?
Yes. NSW uses the term "capital works fund"; other states and common usage often say "sinking fund". They serve the same purpose - funding future major works.
Last reviewed: 19 August 2026
