Queensland Consolidated Regulations
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BODY CORPORATE AND COMMUNITY MANAGEMENT (ACCOMMODATION MODULE) REGULATION 2008 - REG 137
Budgets [SM, s 139]
137 Budgets [SM, s 139]
(1) The body corporate must, by ordinary resolution, adopt 2 budgets for each
• the administrative fund budget
• the sinking fund
Example: See section 144 (Administrative and sinking funds).
The administrative fund budget must—
(a) contain estimates for the financial
year of necessary and reasonable spending from the administrative fund to
(i) the cost of maintaining common property and body corporate
(ii) the cost of insurance; and
(iii) other 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).
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
(i) anticipated expenditure of a capital or non-recurrent nature;
(ii) the periodic replacement of items of a major capital nature; and
(iii) other expenditure that should reasonably be met from capital; and
fix the amount to be raised by way of contribution to cover the capital amount
mentioned in paragraph (a).
Example: 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 future times.
(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.
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
(6) Copies of the proposed budgets must accompany the notice
of an annual general meeting.
(7) 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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