A Comparative Analysis of Australia's Sinking Fund Governance within a Strata Scheme
- China Architecture & Building Press
- Publication Type:
- Conference Proceeding
- Proceedings of 2010 International Conference on Construction & Real Estate Management, 2010, pp. 148 - 152
- Issue Date:
In recent years a number of issues have arisen within Australia's built environment regarding strata title sinking funds and their relationship to the standard of housing stock. In particular, focus has centralised on the emerging problems associated with inadequately maintained amenities in strata title buildings. Primarily the purpose of the sinking fund is for long term capital improvements and maintenance relating to the common property of strata schemes. Therefore, if the sinking fund is inadequately costed and budgeted, the consequential impact on depleted amenities in strata schemes will invariably lead to: poor quality maintenance; deterioration of common property; lower standard of living for the occupiers ; potential loss of appreciated value on the real property; and also a lower rate of return for the property investor Currently, the regulatory regime applying to sinking funds is established at the state and territory level and the varying regimes demonstrate significant inadequacies and inconsistencies. The purpose of this paper was to undertake a national comparative analysis of current and proposed legislation applying only to sinking funds, in order to evaluate the potential effectiveness of the regime.
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