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  • #75053
    The Hood
    Flatchatter

      102 Limits on spending by owners corporation

      (1) An owners corporation must obtain at least 2 independent quotations for proposed expenditure for an item or matter that is more than the amount prescribed by the regulations for this section.

      That limit is currently $30000 (Regulation 25)

      Is that $30000 with GST or $30000 without GST?

      Our budget has GST added to the levy after the amounts are determined. A $30000 line item is GST free in the budget but we get levied $33000 for it so it then has the GST.

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    • #75062
      Jimmy-T
      Keymaster

        I think the key words here are “proposed expenditure” rather than “amount on the quote”.  The figure including the GST is the proposed expenditure.

        However, it strikes me that if a scheme is looking to avoid  getting two quotes by going right up to and not beyond the prescribed limit, then you have bigger problems than GST.

        The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
        #75065
        The Hood
        Flatchatter
        Chat-starter

          However, it strikes me that if a scheme is looking to avoid getting two quotes by going right up to and not beyond the prescribed limit, then you have bigger problems than GST.

          Yes the scheme has serious problems but the person proposing the $30000 line item, an entrenched SC member, oversees this $30k per year project that does not really relate to the management of the OC.
          Where i was going with this is that if the line item says $30k without GST then by considering the key words the “proposed expenditure” will be $33k with GST and therefore the motion to create this line item in the budget fails the requirement to have a second quote.
          It should be ruled out of order by the Chair.
          It is all so the proposer, who typically picks up about  20% of that line items budget as “pay”, is the only show in town.

          #75068
          Jimmy-T
          Keymaster

            I would wait until the general meeting and then propose an amendment that the actual expenditure be recognised as $33,000. And I’d be checking the strata committee records to see if the discussions and votes followed the rules on conflicts of interest, whereby the beneficiary could not be present during discussions or vote on the matter.

            The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
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