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Owners » Committee Information » Spending Limits - FAQ\'s
Spending Limits - FAQ's
What is the meaning of ‘Relevant Limit’ for Committee Spending?
What is the ‘Relevant Limit’ for Committee Spending?
How many Quotes are required for Major Spending?
What is the ‘Relevant Limit’ for Major Spending?
The committee on behalf of the Body Corporate is empowered to maintain the common property by organising maintenance and minor improvements and also authorise payment for regular services through-out the course of a year.
However owners may approve at a General Meeting an amount or a ‘Relevant Limit’ that the committee may spend.
The ‘Relevant Limit’ for committee spending, can be an amount approved by owners, however if no amount is set, then the amount which can be spent by the committee (outside of a General Meeting) is stated under the Regulation Module.
a. For owners to set a ‘Relevant Limit‘, the amount is voted on at an Annual General Meeting or an Extraordinary Meeting
and is set by a simple majority vote (Ordinary Resolution).
b. If there is no amount decided on by the owners, then the ‘Relevant Limit’ is calculated by multiplying the number of lots in the scheme by the amount stated under the Regulation Module. (Note: not by multiplying the lot entitlements)
Regulation Module:
Standard Module: $200.00 multiplied by the number of lots
Accommodation Module: $200.00 multiplied by the number of lots
Small Schemes Module: $200.00 multiplied by the number of lots
Commercial Module: has no limit on committee spending, there is no equivalent provision
However common property improvements are to be authorised at a General Meeting
by a simple majority vote (Ordinary Resolution)
by a simple majority vote (Ordinary Resolution)
If work to be carried out is above the Major Spending Limit, the committee must obtain at least:
Standard Module: two (2) quotes required
Accommodation Module: two (2) quotes required
Small Schemes Module: two (2) quotes required
Commercial Module: has no requirement regarding the number of quotes
Standard Module: If no amount is set, it is the lesser of
(a) $1,100.00 multiplied by the number of lots or
(b) $10,000.00
Accommodation Module: If no amount is set, it is the lesser of
(a) $1,100.00 multiplied by the number of lots or
(b) $10,000.00
Small Schemes Module: If no amount is set, it is the lesser of
(a) $1,100.00 multiplied by the number of lots or
(b) $10,000.00
Commercial Module: has no limit on major spending, there is no equivalent provision
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