Frequently Asked Questions

A Body Corporate is an entity which is made up of each person who owns a lot (aka unit, apartment, townhouse etc.) within the property. When you purchase a lot within a Body Corporate you automatically become a member of the Body Corporate. 

A Body Corporate is a Community Titles Scheme (CTS) each with its own unique CTS number. In order to be classified as a Body Corporate, the CTS must comprise individual lots and Common Property. Common Property are areas that do not form part of a lot and are generally for the use or enjoyment by residents.

Your Body Corporate Manager, or Strata Manager, provides administrative services to your Body Corporate. The duties generally include secretarial and treasurer type tasks. Secretarial duties include dealing with correspondence, preparing and distributing meeting agendas and notices, recording and distributing minutes of meetings. Treasurer duties include paying Body Corporate invoices, issuing and receipting levy contributions, preparing draft budgets, preparation of end of financial year accounts.

Your Strata Manager also assists your Committee in navigating the complexities of Body Corporate legislation, compliance and other matters. In most cases your Strata Manager does not attend to property maintenance.

Your Committee is responsible for the day-to-day running of your building, within limitations on its authority imposed by the governing legislation. This will usually entail approving expenditure (within defined limits) for cleaning, repairs and maintenance, planning for future capital expenditure, attending and participating in meetings, considering requests from owners and providing instructions to the Strata Manager.

Elections for the Body Corporate Committee take place each year at the AGM. Every Committee Member must nominate each and every year should they wish to remain on the Committee. 

Notices inviting nominations for your Committee are issued each year, between 4 to 6 weeks prior to your Body Corporate’s end of financial year. Simply complete the nomination form and submit it to your Strata Manager before your Body Corporate’s end of financial year (subject to eligibility requirements). Each scheme has a different financial year end. 

A Committee must have a minimum of 3 up to a maximum of 7 members (or the number of lots in the scheme if it is less than 7). If only one person nominates for a particular position, then they are declared elected unopposed at the AGM. If there are multiple nominations, then a ballot/vote (secret or open depending on your Body Corporate) will need to be conducted. Any one person can hold up to 3 of the executive positions, being Chairperson, Secretary or Treasurer. 

In very simple terms, ultimately you do. Proposed budgets, and levy contributions to fund those budgets, are decided at your Body Corporate’s Annual General Meeting (AGM), where all ‘interested’ owners (who don’t owe a debt to the Body Corporate) can vote. It is not compulsory to vote at your AGM.

Your Committee, usually with the help of your Strata Manager, will prepare budgets and levy contributions to be put forward for consideration by owners at the AGM. If you want a say in the decisions your Body Corporate makes, then you should review your AGM documentation and cast your votes.

Your levies are paid into a bank account in the name of your Body Corporate which is administered by your Strata Manager. Levies are paid into two funds – the Administrative Fund and the Sinking Fund (see ‘What is an Administrative Fund and Sinking Fund’).

Levies are used to pay for regular, recurring expenses such as cleaning, repairs and maintenance, insurance and administration in addition to making provision, or saving, for future capital expenses such as major replacements and projects (e.g. painting the building).

An Administrative Fund and Sinking Fund are legislated funds that each Body Corporate must maintain. The Administrative Fund is required to fund regular, recurrent expenditure on items such as cleaning, repairs and maintenance of Common Areas and Common Infrastructure, insurance premiums and administrative costs.

The Sinking Fund is somewhat like a savings account, making provision for future expenditure of a capital nature. These are usually large, one-off expenses on major replacements or refurbishments. Examples of this are painting of the building/s, fence replacement, balcony balustrade and window replacement and mechanical equipment replacement.

Each Body Corporate is required to have a Sinking Fund Forecast report which contains forecast budget provisions for the current financial year and the next 9 years.

Money cannot be transferred between the two funds.

The appointment of your Body Corporate Manager must be considered at a General Meeting (AGM or EGM) and can be for a term of up to 3 years. If your Body Corporate is looking to change Body Corporate Managers then you should first check the expiry date of your current contract. Your Committee will usually have a Budget Committee Meeting in the weeks after your Body Corporate’s end of financial year at which time they will consider what motions the Committee will put forward to the AGM. This may include a motion to appoint a Body Corporate Manager.

Owners also have the opportunity to submit motions to the AGM. These must be submitted prior to the Body Corporate’s end of financial year.