NSW: Q&A Spending Limits & Unapproved Fees

Question: Our owners corporation is part of a BMC. Is it regulation that the financial and annual budget of the BMC be presented to the strata committee or owners and approved at a committee meeting before the owners corporation AGM?

I am an owner in an owners corporation that has shared facilities (BMC) with another owners corporation and a municipal council.

In past AGMs the proposed budget amount of our owners corporation contribution to the BMC is included in our proposed budget but without any details of what are the BMC Expenses and what share we are responsible.

Is it a requirement or regulation that the financial (income & expenditure) and annual budget of the BMC be presented to the strata committee or owners and approved at a committee meeting before the owners corporation AGM? This would give a direction to the representative of each owners corporation on voting at the BMC AGM.

Answer: The strata management statement governing your BMC will set out shared facilities contributions proportions.

The strata management statement governing your BMC will set out shared facilities contributions proportions and your BMC representative will likely be privy to the dollar value of same.

While the BMC budget does not specifically need to be presented to the Owners Corporation, the Owners Corporation must budget for the money it will need to credit to its capital and administrative funds for actual and anticipated expenses.

For the full question and our detailed response, visit the original publication at Look Up Strata.

Do you have a question relating to your property or development? Contact us!

‘Liability limited by a scheme approved under Professional Standards Legislation’.