When buyers look at a strata report, one of the first questions they ask is: “Is the capital works fund healthy?” It is a reasonable question. But the answer is less obvious than it looks, because NSW law does not set a minimum dollar balance, and a raw figure without context tells you very little.
This article gives you a practical benchmark. We draw on StrataClear’s analysis of NSW strata reports from December 2025 to May 2026 to show where schemes actually sit by building size. We also explain why the number in the bank is only the starting point, and what else in the strata report carries more weight.
What does the law actually say about capital works fund levels?
The law requires the fund to exist, along with a plan for how it will be used, but it does not set a minimum balance.
Under the Strata Schemes Management Act 2015 (NSW), every owners corporation must establish and maintain a capital works fund. The fund is intended, as the NSW Government describes it, to ensure “enough reserves are built up to cover future major payments”, including roof replacements, lift overhauls, façade repairs, and pool resurfacing.
Section 80 of the Act requires each scheme to prepare a 10-year plan of anticipated major expenditure and to review it at least every five years. Annual levy contributions to the capital works fund are then set based on that plan. Critically, the Act does not set a minimum balance. What the scheme must hold is determined by its own plan, not by a regulatory floor.
As Premium Strata confirms, “there is no obligation on how much funds should be raised to the capital works fund” in NSW. The obligation is to plan adequately and contribute accordingly.
The Strata Schemes Legislation Amendment Act 2025 (NSW) tightened these requirements without changing that position. From 1 July 2025, owners corporations must factor in sustainability infrastructure costs when preparing annual capital works estimates. From 1 April 2026, all new or reviewed 10-year plans must use a mandatory standard form. Both changes improve the quality of planning, but neither prescribes how many dollars must be in the fund at any point in time. For more on how these changes affect levy levels, see the 2026 capital works fund rules.
This matters to buyers because it means you cannot simply compare a fund balance against a legal minimum and conclude that a scheme is compliant or healthy. The meaningful test is always whether the fund is tracking in line with the scheme’s own plan.
StrataClear’s Q2 2026 data: median fund balances by building size
The figures below come from StrataClear’s analysis of NSW strata reports reviewed between December 2025 and May 2026. The table shows median capital works fund balances, grouped by scheme size.
| Building size (lots) | Median CWF balance |
|---|---|
| Fewer than 10 lots | $27,321 |
| 10–49 lots | $48,487 |
| 50–99 lots | $151,887 |
| 100 or more lots | $416,139 |
Source: StrataClear’s analysis of NSW strata reports (December 2025–May 2026).
These figures tell you where other NSW schemes sit at the median. Nothing more. A balance above the median for its size band is not automatically well-funded, and a balance below it is not automatically a problem. The median is a useful orientation point, not a pass-or-fail line.
For context, to understand what the capital works fund is and how it differs from the administrative fund, see administrative fund vs capital works fund.
Why building size is only part of the picture
The raw balance needs to be read against several building-specific factors that vary significantly between schemes.
Age and construction type. An older building (particularly anything built before the 1990s) is likely to face more frequent major works than a newer one. Concrete cancer remediation, ageing waterproofing, and outdated common-area infrastructure are more common in older stock. A 50-lot scheme in a 1975 block has a very different expenditure profile than a 50-lot scheme in a 2015 building, and their fund balances should reflect that difference.
Amenities and common infrastructure. Schemes with lifts, pools, a gym, underground car parks, or façade cladding systems carry higher long-term maintenance obligations. A boutique five-lot building with none of these assets may be genuinely healthy on $27,000. An 80-lot tower with two lifts and a heated pool at the same dollar figure almost certainly is not.
Balance per lot. The total balance figure is more useful when divided by the number of lots. This gives a per-lot reserve figure that allows rough comparison between schemes of different sizes. Strata industry practice recommends reviewing this figure alongside the 10-year plan to assess adequacy.
Upcoming expenditure. A healthy-looking balance may be almost entirely earmarked for works scheduled in the next 12 to 24 months. If the 10-year plan shows a $300,000 roof replacement in year one, a current balance of $280,000 is effectively already spent.
Trajectory. A fund that has been growing steadily over three to five years is more reassuring than one that has been flat or falling. Meeting minutes and financial summaries included in the strata report will often reveal the direction of travel.
The 10-year plan: the real test of fund health
A fund trending positively through the full 10-year forecast window is the most meaningful test of health available to a buyer.
The NSW Government’s 10-year capital works fund plan guidance describes the plan as the core mechanism for ensuring contributions keep pace with future expenditure. A well-prepared plan projects the fund balance year by year against scheduled major works. If the projected balance remains positive throughout the forecast period without relying on large levy increases or special levies, the scheme is planning responsibly.
If the plan shows the balance projected to hit zero or go negative at any point during the 10 years, that is a meaningful signal even if today’s balance looks comfortable. The NSW Government’s Capital Works Fund Planner (Strata Hub) is publicly available and can help buyers model scenarios.
The 10-year capital works plan requirement was introduced as a direct response to the widespread practice of schemes resorting to special levies to reactively fund major works that should have been anticipated and budgeted for. Schemes with no current plan, an outdated plan, or a plan that has not been reviewed within the last five years are all worth scrutinising more closely. The pbl.legal overview of NSW capital works plan reforms provides useful background on what a compliant plan should contain.
Check the date on the plan. Under section 80, plans must be reviewed at least every five years. If the plan on file is more than five years old, the scheme may be out of compliance and the projected figures are likely unreliable.
Special levies as a fund health signal
Active special levies are often the consequence of years of undercontribution to the capital works fund.
In StrataClear’s analysis of NSW strata reports (December 2025–May 2026), 27% of schemes had active special levies at the time of the report. The median special levy amount was $2,845 per lot. The highest recorded in the dataset was $27,025 per lot, in a 211-lot building in Hurstville. That single example illustrates how significant the exposure can be for buyers who do not identify an active special levy before exchange.
As capital works fund vs special levies in NSW explains, special levies arise when the capital works fund cannot cover an unexpected or underplanned expense. They require a resolution passed at a general meeting and can be called in a lump sum or by instalments. The key issue for a buyer is whether the special levy is already resolved (meaning it is a legal obligation that will attach to the lot), partly paid, or still under discussion. Instalment payments falling due before settlement remain the vendor’s liability under the standard NSW contract; those falling due from the settlement date onwards generally become the buyer’s. Your conveyancer can confirm the exact split.
The strata report and Section 184 certificate should disclose any resolved special levies and the amounts outstanding per lot. Buyers should also review meeting minutes from the past two to three years for discussion of major works, failed motions to raise contributions, or deferred maintenance decisions. These are often early signals that a special levy is being considered.
For a full explanation of rights, approvals, and dispute options, see navigating special levies in NSW.
What a buyer should check before making an offer
A practical review of capital works fund health covers six areas:
- Current fund balance. Note the figure and compare it against the median for the building’s size band as a rough orientation.
- Balance per lot. Divide the total balance by the number of lots to allow a more useful cross-scheme comparison.
- 10-year plan trajectory. Is the projected balance positive throughout the forecast period? When was the plan last reviewed? Is it compliant with the post-April 2026 mandatory standard form?
- Scheduled upcoming expenditure. What major works are planned in the next one to three years, and is the current balance sufficient to cover them without a special levy?
- Special levy history and status. Are there any active special levies? What amounts are outstanding per lot? Are any special levies currently under discussion in the meeting minutes?
- Levy contribution trends. Have quarterly contributions been increasing steadily, or have they been flat for years? Flat contributions over a long period in an ageing building can indicate the fund is being underfunded.
Frequently asked questions
What is a good capital works fund balance in NSW?
There is no universal “good” balance because it depends on the scheme’s size, age, building type, amenities, and 10-year expenditure plan. As a general orientation, StrataClear’s analysis of NSW strata reports (December 2025–May 2026) found median balances of $27,321 for schemes with fewer than 10 lots, $48,487 for 10–49 lots, $151,887 for 50–99 lots, and $416,139 for schemes with 100 or more lots. A balance above the median for the scheme’s size is encouraging, but the more important test is whether the balance is sufficient to cover scheduled expenditure in the 10-year plan without relying on special levies.
Does NSW law set a minimum capital works fund balance?
No. The Strata Schemes Management Act 2015 (NSW) requires every owners corporation to establish a capital works fund and prepare a 10-year plan of anticipated major expenditure, but it does not prescribe a minimum dollar balance. Contributions are set annually based on the plan, not against a legislated floor. As Premium Strata has confirmed, “there is no obligation on how much funds should be raised to the capital works fund” in NSW.
What does an active special levy mean for a buyer?
A special levy that has been resolved by the owners corporation at a general meeting is a legal obligation attached to the lot. Instalment payments falling due before settlement remain the vendor’s liability under the standard NSW contract; those falling due from the settlement date onwards generally become the buyer’s. Your conveyancer can confirm the exact split based on the contract terms. The amount can range from a few hundred dollars to well over $20,000 per lot depending on the works being funded. Any resolved special levy should be disclosed on the Section 184 certificate obtained before exchange.
How often must a capital works fund plan be reviewed in NSW?
Under section 80 of the Strata Schemes Management Act 2015 (NSW), a capital works fund plan must be reviewed at least every five years. From 1 April 2026, any new or reviewed plan must use the mandatory standard form introduced by the Strata Schemes Legislation Amendment Act 2025 (NSW). If a plan on file is more than five years old, the scheme may be out of compliance and the projected fund trajectory figures should be treated with caution.
If you are reviewing a strata report and want to understand what the capital works fund figures actually mean for your purchase, StrataClear can help. Upload your strata report and StrataClear will analyse the fund balances, flag active special levies, identify 10-year plan gaps, and surface other financial risk items, turning a complex document into a clear, structured summary so you can focus on what matters before you make an offer.
Ready to understand your strata report?
Upload your strata report to get a comprehensive, easy-to-understand analysis of financial health, special levies, and critical buyer questions in minutes.
Analyse your report nowThis article is general information only and is not legal or financial advice. Laws and strata regulations change — always consult a qualified solicitor or conveyancer before making property decisions. Full disclaimer →