Body Corporate Tips
Use by-laws to enforce Development Approval compliance
Article by admin
Current as at October 17, 2024
Never spend your money before you have it – Thomas Jefferson
For most bodies corporate there are two spending limits.
A committee can authorise spending up to $200 by the number of lots in the scheme, unless a different amount has been set by ordinary resolution at general meeting.
For example, if there are twenty lots in the scheme the limit is $4,000, unless that is changed at general meeting.
Where spending is above that limit, it can be authorised at general meeting.
The major spending limit is the lesser of:
1. $10,000; and
2. $1,100 by the number of lots in the scheme,
unless a different amount has been set by ordinary resolution at general meeting.
For example, if there are twenty lots in the scheme the limit is $10,000, unless that is changed at general meeting.
Where spending is above the MSL, two quotations are required to be considered, regardless of whether the spending is above or below the CSL.
Scheme A – CSL $4,000 and MSL $10,000 with proposed spending of $11,000
Scheme A would need two quotations to consider at general meeting.
Scheme B – CSL $11,000 and MSL $11,000 with proposed spending of $11,000
Scheme B would need one quotation to consider at committee level.
Scheme C – CSL $4,000 and MSL $11,000 with proposed spending of $11,000
Scheme C would need one quotation to consider at general meeting.
Scheme D – CSL $11,000 and MSL $10,000 with proposed spending of $11,000
Scheme D would need two quotations to consider at committee level.
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