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At last nights AGM, the Owners present voted for a budget of $1500. for the Strata Committee Chairman and committee members to use for meals, plus parking. He also mentioned fuel as he lives 300k’s from the building. The Chairman disclosed he is involved in several other schemes.
Is it the obligation on anyone receiving money is to claim expenses on their tax return and not put the onus on the Strata Manager to validate invoices??
I believe this is a slush fund and payment for services cleverly circumvent provisions of the ATO.
Frida
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Section 46 provides that the the OC can pay an amount to a Committee member in recognition of services performed by that member in the preceding 12 months, the amount to be determined by the owners.
So the Act allows payments to Committee members for specific services they may perform, any such payment to be made retrospectively.
In your case the Committee has asked for approval of a set amount to cover expenses (not services) prospectively. I am not sure that the Act allows for payment of “expenses”. To be blunt, what are these meals and why do they have to have them? It sounds like a complete rort.
I suggest you ask the strata manager which section of the Act allows this, and also give Fair Trading a call.
If the owners really think the committee has done a great job in trying circumstances and gone above and beyond the call of duty, the appropriate thing would be for a non-committee member to propose a motion at the AGM to amend the proposed budget for the coming year to include a small honorarium for the outgoing committee.
Better might be a simple vote of thanks proposed from the floor.
Can the OC not find someone to chair who lives closer than 300km from the building!
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