What is a Sinking Fund Forecast Report?
A sinking fund forecast report provides the owners corporation with budget information as follows; • Identifies the common property items which are likely to require maintenance work and/or replacement • Estimates the year in which the maintenance is likely to occur • Estimates the cost of the maintenance in the year of occurrence • Calculates the sinking fund levy contributions necessary to meet these costs after taking into account factors such as accumulated bank interest, income tax and GST. • Most maintenance expenses accrue over time. Using a sinking fund forecast report to set the sinking fund levies ensures each owner pays a fair share of the costs attributable to their usage of the building and reduces the risk of special levies being required.
