Queensland Consolidated Regulations
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BODY CORPORATE AND COMMUNITY MANAGEMENT (STANDARD MODULE) REGULATION 2008 - REG 139
(1) The body corporate must, by ordinary resolution, ado pt 2 budgets for
each financial year—
• the administrative fund budget
• the sinking
See section 146 (Administrative and sinking funds).
(2) The administrative fund budget must—
(a) contain estimates for the
financial year of necessary and reasonable spending from the administrative
fund to cover—
(i) the cost of maintaining common property and body
corporate assets; and
(ii) the cost of insurance; and
expenditure of a recurrent nature; and
(b) fix the amount to be raised by way
of contribution to cover the estimated recurrent expenditure mentioned in
paragraph (a) .
(3) The sinking fund budget must—
(a) allow for raising a
reasonable capital amount both to provide for necessary and reasonable
spending from the sinking fund for the financial year, and also to reserve an
appropriate proportional share of amounts necessary to be accumulated to meet
anticipated major expenditure over at least the next 9 years after the
financial year, having regard to—
(i) anticipated expenditure of a capital
or non-recurrent nature; and
(ii) the periodic replacement of items of a
major capital nature; and
(iii) other expenditure that should reasonably be
met from capital; and
(b) fix the amount to be raised by way of contribution
to cover the capital amount mentioned in paragraph (a) .
Painting of the common property is anticipated to be necessary in 3 years time
at a cost currently estimated at $12,000. The contribution amount for the
sinking fund in the budget for the financial year must therefore include the
annual proportional share for painting of $4,000. Next year, the estimated
cost has increased to $12,400 and so the second year levy will be $4,200. The
estimated cost in the third year is $12,800, so with the $8,200 accumulated, a
levy of $4,600 is necessary to meet the cost. In larger community titles
schemes, the sinking fund will have several projects being funded for various
(4) If the community titles scheme is a lot included in
another community titles scheme, the administrative fund budget must also
include an estimate of the total amount the body corporate may reasonably be
expected to be required to contribute to the administrative and sinking funds
for the other scheme, and any other fund provided for in the regulation module
applying to the other scheme.
(5) The original owner must prepare proposed
budgets for adoption by the body corporate at its first annual general
meeting, and the committee must prepare proposed budgets for adoption by the
body corporate at each later annual general meeting.
(6) Copies of the
proposed budgets must accompany the notice of an annual general meeting.
To remove any doubt, it is declared that the inclusion of an item of
expenditure in a budget adopted by the body corporate is not, of itself,
authority for the expenditure.
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