Never spend your money before you have it – Thomas Jefferson
For most bodies corporate there are two spending limits.
Committee spending limit (CSL)
A committee can authorise spending up to $200 by the number of lots in the scheme, unless a different amount has been set by ordinary resolution at general meeting.
For example, if there are twenty lots in the scheme the limit is $4,000, unless that is changed at general meeting.
Where spending is above that limit, it can be authorised at general meeting.
Major spending limit (MSL)
The major spending limit is the lesser of:
1. $10,000; and
2. $1,100 by the number of lots in the scheme,
unless a different amount has been set by ordinary resolution at general meeting.
For example, if there are twenty lots in the scheme the limit is $10,000, unless that is changed at general meeting.
Where spending is above the MSL, two quotations are required to be considered, regardless of whether the spending is above or below the CSL.
Examples
Scheme A – CSL $4,000 and MSL $10,000 with proposed spending of $11,000
Scheme A would need two quotations to consider at general meeting.
Scheme B – CSL $11,000 and MSL $11,000 with proposed spending of $11,000
Scheme B would need one quotation to consider at committee level.
Scheme C – CSL $4,000 and MSL $11,000 with proposed spending of $11,000
Scheme C would need one quotation to consider at general meeting.
Scheme D – CSL $11,000 and MSL $10,000 with proposed spending of $11,000
Scheme D would need two quotations to consider at committee level.
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