How should a body corporate’s finances be managed?
A body corporate is a not-for-profit organisation and under Queensland law is expressly forbidden from carrying on a business.
However, strict financial rules exist under the Body Corporate and Community Management Act 1997 (BCCM Act) that a body corporate is required to follow.
Each year, budgets must be prepared for an administrative fund and for a sinking fund.
Lot owner levies will be based on raising sufficient funds to finance forecast expenditure set out in those budgets.
Further reading
- Can a body corporate invest funds or borrow funds?
- Committees need to manage funds for the long-term
- What are body corporate levies?
- What spending limits exist for body corporate committees?
- What banking requirements must a body corporate meet?
- What financial records must a body corporate keep?
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