A sinking fund forecast is a detailed estimate of the likely costs associated with capital works around the strata scheme. The estimate covers a specific time frame, generally 10 years, and then calculates how much is to be raised from lot owners to fund those works now and in the future.
Forecasts allow for (in accordance with regulations):
- Likely spending of a capital or non-recurrent nature.
- Replacement of major capital items.
- Other costs that should reasonably be met from capital.