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If you sit on a strata or owners corporation committee in Melbourne, Sydney or Brisbane, you've almost certainly heard terms like "maintenance fund," "sinking fund," or "capital works fund" thrown around at an AGM. They all refer to the same thing — but why does the terminology change from state to state, and why does it matter so much when it comes to keeping your building's paintwork and facade in good condition?
This guide breaks down what a maintenance fund is, why the name differs depending on where your building is, and how strata committees can use it to plan for major maintenance like commercial painting and building repairs.
What Is a Maintenance Fund?
A maintenance fund is a pool of money set aside by a strata scheme, body corporate, or owners corporation to cover the cost of major, non-recurring building works — things that don't come up every year, but are inevitable over the life of a building. This includes exterior repainting, roof restoration, concrete repair, waterproofing, and facade maintenance.
Rather than hitting owners with a large, unexpected special levy when the building suddenly needs a full repaint or a concrete repair program, a well-managed maintenance fund spreads that cost out over time through regular contributions. It's essentially a long-term savings account for your building.
Maintenance Fund, Capital Works Fund, or Sinking Fund? Why the Name Changes by State
This is where a lot of committees get confused — especially those managing property across state lines — because each state uses different terminology for essentially the same thing:
- Victoria (Melbourne): Known as the maintenance fund.
- New South Wales (Sydney): Under the Strata Schemes Management Act 2015, the term used is capital works fund. Every strata scheme in NSW is legally required to maintain one.
- Queensland (Brisbane): Known as the sinking fund, as set out under Queensland's body corporate legislation.
Functionally, they all serve the same purpose — funding the major maintenance items that a standard administrative fund isn't designed to cover. If you manage properties across Victoria, NSW and Queensland, it's worth remembering that these are effectively interchangeable terms for the same concept, just named differently by each state's strata legislation.
What Does a Maintenance Fund Typically Cover?
For most commercial and residential strata buildings across Melbourne, Sydney and Brisbane, maintenance fund money is commonly allocated toward:
- Exterior and facade repainting
- Concrete repair and crack remediation
- Waterproofing and protective coatings
- Roof restoration and roof painting
- Balcony repairs and restoration
- Common area upgrades
- Building facade repairs identified through a building condition report
This is exactly why long-term painting maintenance planning matters so much for strata committees — a scheduled painting maintenance program lets you forecast costs accurately and budget your maintenance fund contributions with confidence, rather than reacting to deterioration after it's already become expensive.
Why Maintenance Fund Planning Matters for Building Maintenance
A poorly planned maintenance fund is one of the most common reasons strata buildings fall into disrepair. Paint failure, facade cracking, and water ingress are rarely sudden — they're the result of deferred maintenance that a healthy maintenance fund could have prevented.
This is where a 10-year (or longer) maintenance plan becomes essential. A good plan should be informed by:
- A professional building condition report or facade inspection
- Realistic cost estimates for future commercial painting and remedial works
- A maintenance schedule that prioritises protective coatings and preventative repairs over reactive fixes
Committees that get ahead of this — budgeting for a scheduled painting maintenance program rather than waiting for visible damage — consistently spend less over the life of the building and avoid the special levies that frustrate owners.
Getting Professional Advice on Your Maintenance Fund
Because maintenance fund contributions are based on projected maintenance costs, it pays to get accurate numbers from painting and building maintenance specialists who understand strata and body corporate requirements across each state — not just a general contractor quote.
At Avello Group, we work directly with strata committees and owners corporations across Melbourne, Sydney and Brisbane to provide the condition assessments and long-term maintenance planning that make sinking fund and capital works fund budgeting straightforward. Whether you need a building condition report, a scheduled painting maintenance program, or advice on what your next repaint or facade project is likely to cost, our team can help you plan with confidence.
Ready to plan your building's next maintenance cycle?
Get in touch with Avello Group for a strata-focused building assessment and maintenance plan at:
P 1300 283 556
E info@avello.com.au
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