*The following information is for community titles schemes registered under the Standard, Accommodation and Small Schemes module.

Committee Spending And Spending Limits

The relevant limit for committee spending (how much a committee can spend without having to go to a general meeting) can be set by Ordinary Resolution in a motion in either an Annual General Meeting or Extraordinary General Meeting.  There is no minimum or maximum limit that a Body Corporate can set.

If no amount is set by a general meeting resolution then the relevant limit is $200 x the number of lots in the scheme.  For example $200 x 20 lots = $4,000 committee spending limit.

The committee must allow for goods and services tax (GST) in its spending.  For example for a scheme with 20 lots the committee spending limit would be $4,000.  If the committee obtained a quotation that is $4,400 this can not be approved at committee level as it goes over the relevant spending limit.  The committee would need approval by a resolution at a general meeting for the quotation to be accepted.

The relevant limit for committee spending in a layered scheme is calculated by multiplying the number of layered lots in the scheme by $200.

For example: The principal scheme = 5 lots.  4 of these lots have 20 lots inside of them (these are referred to as layered lots).  The spending limit is calculated as: 1 (principal scheme) + 20 (layered lots) + 20 (layered lots) + 20 (layered lots) + 20 (layered lots) x $200 = $16,200.

Available Funds

The committee is not allowed to divide a single project into smaller parts to bring the project within its spending limits.  For example the project is the renovation of the foyer and there is quotations for tiles $8,000, light fittings $4,000 and painting $6,000.  Each quotation comes under the committee spending limit of $16,200 however the renovations cannot be done at committee level as the whole project is over the spending limit.  The committee would have to seek approval by resolution at a general meeting.

When can the committee spend over the committee spending limit?

The committee can only spend of its relevant limit if:

  • The spending is authorized by a resolution at a general meeting
  • The lot owners of all the lots in the scheme have given written consent
  • An adjudicator has authorised the spending to meet an emergency
  • The spending is needed to comply with a statutory order or notice given to the Body Corporate.


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