Body Corporate
Committees need to manage funds for the long-term
Article by Frank Higginson
Current as at September 11, 2025
This article appears in LookUp Strata QLD Strata Magazine, June 2025
In the life of every body corporate, there is a moment when people need to step back and ask the question: Are we being reasonable?
Or, in other words: Just because we can take this course of action, does it mean we should?
We see this a lot with by-laws. The general rule of thumb is that a by-law must not be oppressive or unreasonable, having regard to the interests of all owners and occupiers of lots included in a scheme.
Once registered it is the task of the committee to oversee the governance of the by-laws.
However, the test of ‘being reasonable’ can sometimes go by the wayside when people focus too keenly on the process and not the desired outcome.
Defining ‘reasonable’ is no simple task.
An example of being unreasonable could include the sudden rigid enforcement of a by-law that has been inconsistently enforced before.
Or, a committee knowingly adopting a by-law into the Community Management Statement that it knows is invalid but chooses to enforce regardless until challenged by an aggrieved lot owner.
A no-pets by-law is a good example of this practice.
It’s surprising how often some committees will try to brazen it out by clinging to invalid by-laws that are well passed their best-by date in a bid to achieve a particular outcome.
In the back of each committee member’s mind should be the twin questions: What are we trying to achieve, and What’s the best way of achieving it?
The by-laws may clearly state the process to follow should an owner fall behind in the payment of levies.
However, if it’s known that a lot owner is going through some temporary financial difficulties, would it not be better for an adult conversation to take place and a payment plan agreed as opposed to just commencing a legal proceeding for recovery?
The strict adherence to the policy may well tick all the process boxes, but does it achieve the desired outcome of getting the levies paid?
The world no longer operates 9-to-5. People have hybrid working arrangements with some days in the office and other days at home. Shift work is commonplace across many industries.
Scheme by-laws that were first drafted in the previous century can sometimes struggle to keep up with the changing work-life landscape.
By-laws that restrict access to common property such as gyms and swimming pools may no longer be appropriate for residents who don’t live that traditional 9-to-5 work regime.
From a committee’s perspective, it may be possible to restrict the use of the gym to between 9am and 6pm, but is this reasonable in the current work environment?
Volunteering to work on a body corporate committee is a big commitment in time and emotional energy.
Making sure the by-laws are valid and up to date is one task (consider our free by-laws assessment service). Making sure they are applied in a fair and reasonable manner is enitely another.
People often tell us that we don’t seem like lawyers. We make a point to have real conversations with our clients in everyday language. At our core, we know that success is built on relationships.
