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  • #12009

    Having perused the Strata Schemes Management Act 2015, I can’t see anything which is a directive about expenditure limits by Strata Committees.  It seems that many clauses are not relevant until they become an issue, so that hazards are not realised until they are encountered.

    We have some urgent work due, and as has happened in the past, the committee has made a decision to go ahead, which is necessary, but for future knowledge, should we decide on a limit at our AGM, for larger expenditure, and whether it is the Strata Committee alone, or the Owners Corporation which has the decision-making right?  It is only a small complex with seven owners altogether, so we don’t have any guidance from the Act.

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  • #30801

    Strata Schemes Management Act. 2015 no 50.

    Division 5 Financial functions generally. 102

    Our Chairman usually goes unlimited spending and no restrictions on strata committee decisions.  If we want to discuss he takes the vote and goes onto the next AGM agenda our AGM lasts 30 minutes.


    Hi there, Yes, deciding a limit practical I believe.   

    In my experience, expenditure limit by committee comes up at every AGM.

    Depends on how things happen normally in your building. Sounds like it’s a casual neighbourly arrangement.  That’s great if it works.

    However the AGM is the proper forum for a motion and minute otherwise, in the strata rule sense, I understand. 

    Good luck. 

    Sir Humphrey

    With only 7 units, how hard would it be to call a general meeting (with proper notice etc) any time the committee feels there is a need to authorise some unusual spending that goes beyond being reasonably consistent with the budget approved at the AGM?  By definition, unusual spending does not happen very often, whereas usual spending should be anticipated in the approved budget with varying degrees of accuracy depending on the nature of the expense. 

    By ‘reasonably consistent’ I mean that while some items can be predicted with great accuracy some other ordinary expected expenses can vary a bit without that being unreasonable.  Eg. where I am with over 100 units and lots of trees on the common property we always have some tree surgery and the annual admin fund budget has a line for it. We might budget $6000, which is a typical amount to spend but some years we only need to spend $4000 and other years we might need to spend $8000, but we still do what needs doing when it needs doing. The budget carries over enough surplus from one year to the next to accommodate a bit of wobble in the items that are harder to predict precisely. 


    Thank you for your welcome and valuable input!

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