82Sinking fund plan

82 Sinking fund plan (1) This section applies to an owners corporation for a units plan if the corporation is required to establish and maintain a sinking fund. (2) The owners corporation must approve, by ordinary resolution, a plan for the sinking fund (a sinking fund plan) for the 10-year period beginning on the first day of the financial year following the approval. Note A sinking fund plan of an existing owners corporation that was current immediately before the commencement of this division is taken to be a sinking fund plan under this Act (see s 157 (2)). The day the existing sinking fund plan is approved for this Act is the day the existing sinking fund plan was approved by the owners corporation for the Unit Titles Act 2001 (see s 157 (3) and (4)). (3) The sinking fund plan must state— (a) the expected sinking fund expenditure for at least the 10-year period of the plan; and (b) for each financial year of the plan—the total contributions (the total sinking fund contribution) required from members of the owners corporation necessary to— (i) meet the expected sinking fund expenditure for the financial year; and (ii) reserve an appropriate amount necessary to be accumulated to meet expected sinking fund expenditure over at least the remaining years of the plan; and (c) if the owners corporation has made a special resolution under section 89 (2) (b)—the sinking fund contribution required from each unit owner, or unit owner in a particular class, for each financial year of the plan. 1 An owners corporation for a units plan estimates that the expected sinking fund expenditure for the 10-year period of its sinking fund plan is $220 000. The expenditure includes expenditure of $10 000 for each year and a ‘one-off’ amount of $120 000 in the 8th year of the plan. The owners corporation approves a total sinking fund contribution of $25 000 for each financial year of the plan to meet the expected sinking fund expenditure and to provide for a balance of $30 000 in the fund.