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[Waratah]

I’m having a disagreement with another owner in our scheme about the meaning of Section 102 of the Strata Schemes Management Act 2015 and seek the advice of the Flat Chat brains trust.

102 (2) says An owners corporation for a large strata scheme must not spend on an item or matter an amount greater than the amount specified for the item or matter (plus 10%) in estimates provided for that item or matter at an annual general meeting.

We both agree that this means that if an AGM agrees to spend (for example) $1000 on an item, the owners corporation can spend up to $1,100 on that item if needs be. But no more than that.

102 (3) says The owners corporation may by a resolution passed at a general meeting remove the limitation imposed by subsection (2) generally or in relation to any particular item or matter.

My interpretation of this is that, if the general meeting removes the limitation generally, then the strata committee (acting on behalf of the owners corporation) could spend whatever amount of money it likes on any item identified in the budget OR if it removes the limitation on a particular item, then the strata committee (acting on behalf of the owners corporation) can spend whatever it likes on that item only, but the rest of the expenditure must not be more than 10% more than specified in the budget for other items or matters.

The other owner interprets this section to mean that, if the general meeting removes the limitation, the strata committee (acting on behalf of the owners corporation) can spend however much money it chooses on whatever items or matters it chooses, whether it has been identified in the budget or not.

Who is right?

Thanking everyone in advance.

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