Sinking Fund Contingencies – Allowed or Not?

Sinking Fund Contingencies – Allowed or Not?

Newsflash #36 and The Duporth Riverside [2017] QBCCMCmr 177 The UOAQ published Newsflash #36 in February 2018, alerting members to a 2017 adjudication order that a body corporate’s annual Sinking Fund Budget cannot include provision for unexplained contingencies. Put simply, a budget is not a lolly jar. It can only “…include specific items of expected expenditure…
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Spending and Payment Rules of Bodies Corporate

Spending and Payment Rules of Bodies Corporate

22.2: Liability to Pay v Actual Payment:  A Golden Rule for Each Liability to Pay: arises when a body corporate contracts with either a supplier of goods or a service provider. Actual Payment: transfer of body corporate monies to the supplier, or provider, upon receipt of the invoice.  The rules for ‘liability to pay’ are…
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Some Bodies Corporate Do Not Need to Collect GST

Some Bodies Corporate Do Not Need to Collect GST

A New Tax System (Goods and Services Tax) Act 1999 Since 1 July 2000, we have all become used to paying tax as part of making payments for most of the goods and services that we purchase.  The services provided by Bodies Corporate to their members and others are no different.  In the words of…
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Strata Spending – GST May Be the Tipping Point

Strata Spending – GST May Be the Tipping Point

11.1: Spending Controls: GST may be the tipping point Many questions should be considered before approving any expenditure. Understandably, the BCCM legislation places many checks and balances on the expenditure of owners’ funds, whether it be from the administrative fund or the sinking fund. Both the body corporate and the committee are subject to a…
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