Strata Schemes Management Act 2015 No 50
Current version for 1 July 2020 to date (accessed 10 July 2020 at 07:56)
Part 5 Division 5
Division 5 Financial functions generally
100   Power to borrow money
(1)  An owners corporation may borrow money and secure the repayment of money and of any interest in any manner agreed between the owners corporation and the lender, otherwise than by charging the repayment on the common property.
(2)  An owners corporation must not borrow money, or secure the payment of money and interest, unless a resolution approving the relevant loan has been passed at a general meeting of the owners corporation.
101   Persons who can exercise functions relating to the finances and accounts of the owners corporation
A person must not exercise any of the functions of an owners corporation or the treasurer of an owners corporation relating to the receipt or expenditure of, or accounting for, money of the owners corporation or the keeping of the books of account of the owners corporation unless the person is—
(a)  the treasurer of the owners corporation, or
(b)  a strata managing agent who is empowered to exercise the function, or
(c)  a person with whom the treasurer of the owners corporation is required by a decision of the strata committee to exercise the function jointly, and who is enabling the treasurer to comply with the decision, or
(d)  a member of CPA Australia, or a member of the Institute of Chartered Accountants Australia and New Zealand, authorised by the owners corporation to exercise the function, or
(e)  a member of the Institute of Public Accountants authorised by the owners corporation to exercise the function, or
(f)  during the initial period only—a person authorised by the owners corporation to exercise the function.
Maximum penalty—5 penalty units.
102   Limits on spending by large strata schemes
(1)  An owners corporation for a large strata scheme must obtain at least 2 quotations in relation to proposed expenditure in respect of any one item or matter if the proposed expenditure will exceed the amount prescribed by the regulations for the purposes of this section.
(2)  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.
(3)  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.
(4)  This section does not apply to expenditure for emergency purposes, including (but not limited to) the following—
(a)  burst or blocked water or sewerage pipes,
(b)  serious damage caused by fire or storm or any other natural disaster,
(c)  unexpected electrical or security system failure,
(d)  glass breakages that affect the security of any building in the strata scheme or could result in damage to the inside of any such building.
103   Legal services to be approved by general meeting
(1)  An owners corporation or strata committee of an owners corporation must not obtain legal services for which any payment may be required unless a resolution approving the obtaining of those services is passed at a general meeting of the owners corporation.
(2)  An owners corporation or strata committee may obtain legal services without obtaining approval under this section if—
(a)  it is of the opinion that urgent action is necessary to protect the interests of the owners corporation, and
(b)  the cost of the legal services does not exceed $10,000 or another amount prescribed by the regulations for the purposes of this subsection.
(3)  Approval under this section is not required for the following—
(a)  to obtain legal advice before commencing legal action,
(b)  to take legal action to recover unpaid contributions, interest on unpaid contributions or related expenses,
(c)  to take any other legal action prescribed by the regulations for the purposes of this section.
(4)  A failure by an owners corporation or the strata committee of an owners corporation to obtain an approval under this section does not affect the validity of any proceedings or other legal action taken by the owners corporation.
(5)  In this Division—
legal services includes obtaining legal advice and taking legal action.
104   Restrictions on payment of expenses incurred in Tribunal proceedings
(1)  An owners corporation cannot, in respect of its costs and expenses in proceedings brought by or against it for an order by the Tribunal, levy a contribution on another party who is successful in the proceedings.
(2)  An owners corporation that is unsuccessful in proceedings brought by or against it for an order by the Tribunal cannot pay any part of its costs and expenses in the proceedings from its administrative fund or capital works fund, but may make a levy for the purpose.
(3)  In this section, a reference to proceedings includes a reference to proceedings on appeal from the Tribunal.
105   Disclosure of matters relating to legal costs
If a disclosure under another Act is made to an owners corporation in respect of the costs of legal services to be provided to the owners corporation and the legal services are services for which approval is required under section 103, the owners corporation must give a copy of the disclosure to each owner and strata committee member not later than 14 days after the disclosure being made.