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18/04/2011 at 1:18 pm
#12683
JimmyT said:
What can be done is that you can alert all owners to the fact that their money is being wasted.Somewhere at the back of my mind there's a thought that you will also be taxed on the excess in the sinking fund. Since it's not ussed or allocated to projects that haven't been contracted out, I think the Tax Office considers it a profit and will tax you accordingly.Don't quote me on that without checking with your strata manager but if it's true, then you'll be hit with a double whammy – an unnecessary special levy and then a tax on the excess.Get a hold of your strata roll and write to or call every owner personally and tell them (in as unemotive language as possible) what the problem is and why they need to vote against this.
Thanks, Jimmy T – will do. Unfortunately the vote has been taken, and I don't think owners were aware of the implications. At the meeting the strata manager played dumb when queried about the legality of converting a special levy into a temporary increase in the sinking fund contributions even though the costs were already covered.