How can body corporate funds be invested?

Body corporate funds must be held in trust in a prescribed account — typically a bank account in the scheme's name administered by the body corporate manager or the committee. Surplus funds can be invested in prescribed low-risk investments such as: - Bank term deposits - At-call savings accounts - Other government-approved deposit accounts Body corporate funds cannot be invested in shares, managed funds, or other volatile assets. The priority is capital preservation and accessibility — the funds need to be available when maintenance expenses or levy shortfalls arise. Any interest earned belongs to the fund in which the money is held. The committee should review investment arrangements regularly, particularly in a changing interest rate environment, to ensure the scheme is earning a reasonable return on term deposits. This article is general information only and not legal advice.