Eliminating Financial Stagnation
The greatest source of "Management Friction" in a building's finances is stagnant capital. When a Committee leaves significant Sinking Fund reserves in a standard operating account earning near zero interest, they are effectively losing money to inflation every single day.
At Clearview, we believe the scheme's treasury should be treated with the same clinical logic as a professional investment portfolio. This guide provides a framework for moving away from "Lazy Capital" and into properly structured high-yield instruments — protecting the building's purchasing power, reducing the need for aggressive levy increases, and securing the funds required for future structural works.
The Elements of a Productive Treasury
Three disciplines that turn an idle bank balance into a working capital instrument.
We do not just seek the highest rate — we match liquidity to the timing of planned expenditure. At-Call for immediate repairs; short-term deposits for planned maintenance; longer terms for capital works 2+ years away.
We specify the exact sequence of fund allocation — layered deposits and rate benchmarking — to ensure the scheme accesses wholesale institutional rates typically reserved for corporate investors.
Every treasury strategy benchmarks returns against the Building Cost Index — ensuring interest earned on idle funds actually keeps pace with the rising cost of the construction work those funds are intended to finance.
The real cost of Lazy Capital in a rising-rate market
With Australian term deposit rates now ranging from 4.50% to over 5.00% p.a. and the RBA cash rate at 4.10%, a scheme holding $300,000 in a standard operating account earning 0.01% is foregoing $13,500–$15,000 in interest per year. Over a five-year capital works cycle, that gap compounds into a significant funding shortfall — one that typically shows up as a special levy the Committee never planned for.
Current Market — Australian High-Yield Accounts
The following table provides a snapshot of competitive offerings from major and challenger Australian banks as at March 2026. These rates are indicative only and change frequently — always confirm directly with the provider. All listed institutions are APRA-regulated ADIs covered by the Government's Financial Claims Scheme (up to $250,000 per depositor per ADI).
Disclaimer: Rates sourced from public information as at 19–20 March 2026. Rates are variable or subject to change and may not reflect the current offer at the time of reading. Always verify rates directly with the relevant institution before making treasury decisions. Clearview does not receive any commission from any financial institution. Not financial advice — confirm suitability with your scheme's accountant or financial adviser before acting.
Engineering the Treasury Process
Two methodologies that apply clinical logic to capital positioning — ensuring the scheme never leaves meaningful reserves in a low-yield account while remaining able to fund immediate needs.
The Institutional Rate Audit
Ensuring wholesale interest integrity
We achieve a higher standard of return by bypassing standard retail savings accounts. Our standard requires a forensic search for high-yield products designed for large balances — including term deposits and business savings accounts from challenger banks and specialist institutions.
By securing rates that are often 1.5% to 2.5% higher than what a standard body corporate account earns, we ensure that the interest earned actually bonds to the Sinking Fund's long-term requirements. For a scheme with $500,000 in reserves, the difference between 0.01% and 4.75% is approximately $23,700 in additional interest per year — a figure that materially impacts levy stability.
The Transparent Yield Tabulation
A layered approach to treasury allocation
Instead of placing all reserves in a single account, we create a Yield Tabulation for the Committee — breaking down the treasury by liquidity tier. The goal is to match each tranche of money to the account type that best balances rate, security, and access timing.
This layered approach ensures the scheme earns maximum interest on the money it doesn't immediately need, while always keeping sufficient At-Call funds for unplanned maintenance and administrative costs.
Important Considerations for Committees
Before repositioning Sinking Fund reserves, Committees should confirm the following with their Strata Manager and scheme accountant:
Government guarantee limits. The Australian Government's Financial Claims Scheme guarantees deposits up to $250,000 per depositor per ADI. A scheme with reserves above this threshold should consider spreading deposits across multiple ADIs to maintain full coverage.
BCCM Act compliance. The Sinking Fund is a regulated trust account. Any treasury strategy must comply with the BCCM Act requirements regarding how scheme funds are held and accessed. Clearview ensures full compliance before any repositioning is undertaken.
Committee resolution required. Moving significant Sinking Fund balances between accounts constitutes a financial decision that typically requires a formal Committee resolution. This ensures the decision is properly recorded and within the Committee's spending authority.
Rates change frequently. The rates cited in this guide reflect market conditions as at March 2026 following the RBA's second consecutive cash rate increase. These should be independently verified before any decision is made.
Treasury Without Friction
The outcome of applying the High-Yield Treasury Standard is a Sinking Fund that grows in silence. By providing the Committee with a clinical, engineering-led financial brief, we remove the ambiguity of "Lazy Capital."
You gain the confidence of knowing that your levies are being protected by a standard of fiscal management that is beyond reproach — turning a static bank balance into a powerful tool for the long-term stewardship of your asset, reducing the likelihood of special levies, and building genuine financial resilience into the scheme for the years ahead.