Understanding Body Corporate Disclosure Statements
In Queensland, the law mandates that sellers of lots in community title schemes provide a disclosure statement to prospective buyers before entering into a contract.
Home » Committee advice » Spending limits
These limits generally inform what group is required to approve the spending (e.g. caretaker, committee or all owners), and whether one or more quotes must be considered.
Buildings which have a caretaking service contractor (sometimes called caretaker, building manager, on-site manager) often delegate a spending power to the caretaker that they can exercise independently. This allows the caretaker to call out tradespeople or purchase supplies without needing a committee resolution for each individual expense.
Is there a default | No – depends on the specific contract (but generally in the range $500-$1,000) |
Can it be changed | Yes – Generally the committee can change the limit within the terms of the contract |
Is there a maximum | As the limit is granted by the committee, the limit cannot be higher than the committee spending limit. We recommend a maximum of around $2,500 |
Why change | A higher limit allows the caretaker to be more autonomous and to get repairs done more quickly. On larger buildings there can be a significant amount of emails avoided if the caretaker is empowered with a decent spending authority. |
Is there a default | Yes – $200 x number of lots |
Can it be changed | Yes – At a general meeting |
Is there a maximum | No – the new limit can be any amount |
Why change | A higher limit allows the committee more spending power, increases the speed of decision-making and reduces cost for additional general meetings (AGM or EGM) to approve spending |
Is there a default | Yes – The lower of $1,100 x number of lots; or $10,000. |
Can it be changed | Yes – At a general meeting |
Is there a maximum | No – the new limit can be any amount |
Why change |
A higher limit allows for only one quote to be considered if that is the most practical option.
The committee can still obtain multiple quotes but does not need to give owners the choice between multiple quotes. |
In March 2021 the legislation was amended to enable the committee to make a decision about mandatory insurance policies, even if the cost of the policy is beyond the committee’s normal spending limit.
Is there a default | Committee has unlimited spending power for mandatory insurances |
Can it be changed | No |
The basic improvement limit is a special limit which restricts the committee’s ability to approve spending on improvements. Within the basic improvement limit, the committee can approve the spending as long as the spending is also within the committee’s spending limit.
Is there a default | Yes – $300 x number of lots |
Can it be changed | No |
The ordinary resolution improvement range is a range of spending on improvements, within which the spending must be approved by an ordinary resolution of owners at an AGM or EGM.
Is there a default | Yes – Improvements up to $2,000 x number of lots |
Can it be changed | No |
Is there a default | Yes – Improvements up to $2,000 x number of lots |
Can it be changed | No |
Yes – the limit applies to the cost of the work, GST and any other taxes and fees are included in the limit. So for the purpose of spending limits, a job quoted at $20,000 + GST is a $22,000 spend for the purpose of assessing spending limits.
In Queensland, the law mandates that sellers of lots in community title schemes provide a disclosure statement to prospective buyers before entering into a contract.
Understanding how your individual levy amount is calculated can help you appreciate where your money goes and ensure transparency in the management of your community. Here’s a breakdown of the aspects involved in calculating levy amounts.