What spending limits exist for body corporate committees?

The spending limit for a body corporate committee can be set by an ordinary resolution of the body corporate at a general meeting.

If no specific committee spending limit is set, then the committee is limited to $200 multiplied by the number of lots in the scheme.

That is, if there are 50 lots in this scheme, the committee spending limit is $10,000.

When seeking a quote, the committee must include GST in the total when considering the spending limit.

Before a committee approves any spending within its limit, it must ensure there are sufficient funds in the budget for the specific project.

If there is insufficient money available the committee can call a general meeting to amend the budget or raise a special levy.

The need to obtain at least two quotes is governed by the same rules regarding the major spending limit.

It is possible for a body corporate to set the committee spending limit at a point greater than the major spending limit.

When must a body corporate seek two quotes for proposed major expenditure?

Under Queensland law, a body corporate must obtain at least two quotes for any proposed expenditure above the “major spending limit” set under the BCCM Act.

The limit is the greater of either $10,000 or $1100 multiplied by the number of lots in a scheme. For example, if a scheme has 100 lots, the major spending limit is $110,000.

A body corporate can vote by an ordinary resolution at a general meeting to adjust this limit higher.

The at least two-quote requirement is designed to give owners comfort that quotes are commercially priced.

A body corporate can obtain more than two quotes, even if the legislation does not require it.

Further reading

• Two quotations are required when above the Major Spending Limit
• Knowing your limits
• How should a body corporate’s finances be managed?