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Reserve fund contribution calculator
Estimate the STSMA prescribed minimum annual reserve fund contribution for a sectional title scheme.
The formula
ratio = current reserve balance ÷ annual administrative fund budget. If the ratio is below 25%, the prescribed minimum is 15% of the administrative budget. If the ratio is 100% or more, the contribution may be nil. In between (25%–100%), the minimum is at least the amount budgeted to be spent from the reserve that year. Monthly = annual ÷ 12.
Worked example
With a R1 200 000 admin budget and a R200 000 reserve (about 17% — below 25%), the prescribed minimum is 15% of the admin budget = R180 000 per year (R15 000 per month).
Assumptions & limitations
Implements the STSMA prescribed minimum: below 25% of the admin budget, at least 15% of the admin budget must be contributed; at or above 100%, the contribution may be nil; in between, at least the amount budgeted to be spent from the reserve that year.
Statutory assumptions used
Reserve threshold (lower): 25% of the administrative budget. Prescribed minimum top-up: 15% of the administrative budget. Reserve threshold (upper, contribution may be nil): 100% of the administrative budget. These thresholds are set by regulation under the Sectional Titles Schemes Management Act 8 of 2011 — confirm them against the current regulations before relying on the result.
The reserve fund rules are set by regulation under the STSMA and the exact contribution also depends on the scheme’s 10-year maintenance plan — confirm against the current regulations and your maintenance plan.
Source: Sectional Titles Schemes Management Act 8 of 2011 and its regulations (reserve fund).
Informational only — not financial or legal advice. Confirm figures against the current STSMA regulations, the approved budget, and the scheme’s 10-year maintenance plan.
Reserve fund contribution calculator — FAQ
How much must a sectional title scheme contribute to its reserve fund?+
Under the STSMA prescribed minimum, if the reserve balance is below 25% of the administrative budget the scheme must contribute at least 15% of the administrative budget. Between 25% and 100% it must contribute at least the amount budgeted to be spent from the reserve that year. At or above 100% the contribution may be nil.
Why does the contribution depend on the current reserve balance?+
The prescribed minimum scales with how well-funded the reserve already is relative to the administrative budget. A poorly funded reserve (below 25%) triggers the 15% top-up, while a well-funded one (at or above 100%) can pause contributions, subject to the scheme’s 10-year maintenance plan.
Is this the same as the levy?+
No. This is only the reserve fund portion. The total levy a unit pays combines the administrative fund budget and the reserve fund budget, apportioned by participation quota. Use the sectional title levy calculator for the per-unit levy.