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If an equipment (around $4,000) fails and has to be replaced, can we claim it under Capital Works or Admin?
When is it acceptable to post a transaction to Capital Works?
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If an equipment (around $4,000) fails and has to be replaced, can we claim it under Capital Works or Admin? When is it acceptable to post a transaction to Capital Works?
Are you also in Victoria (like the OP)?
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Here’s what Section 79 0f the NSW Act says:
The Admin fund would cover “recurrent expenses” which would include “such regular expenses as insurance, water charges, electricity charges, carpet cleaning, lawn mowing services and the like and minor expenses relating to maintenance of the common property.”
The Capital Works fund should meet “expenses of a capital nature [which] would include expenses in relation to major repairs or improvements to the common property or personal property of the owners corporation, such
as replacement of roofing, guttering or fences and the like.”In other words, replacing common property equipment would be a Capital Works purchase.
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A couple of points here.
The Act uses the word “estimate” – that implies it doesn’t expect a legally binding commitment to spend the amount listed on the defined item.
Also, strata schemes are largely self-policing. Take a stroll through the Act and see how many rules and regulations carry no penalties for failure to comply.
The implied punishment is when someone in the scheme complains to NCAT, seeking orders to compel the owners corp to obey the law or face removal and replacement by a compulsory manager.
There are no StrataKops.
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