Reforms will strata companies the power to improve or alter common property:
1. subject to the expenditure controls of the strata company; and
2. where the expenditure exceeds an amount provided in the regulations, a special resolution of the strata company will be required to approve the alteration or improvement of the common property (and details of that improvement / alteration will have to be provided to owners before the vote).
The expenditure controls of a strata company are:
1. the annual budget, which is approved by an ordinary resolution of the strata company
2. spending (calculated on a per lot basis) that is less than the amount allowed by the regulations (currently $65) or another maximum amount per lot as approved by a special resolution of the strata company or
3. expenditure approved by the notice process.
The notice process is: all owners and first mortgages are given written notice of the purpose and amount of the proposed expenditure. The expenditure is approved unless, within 14 days, written objections are received form the owners or first mortgagees of either:
· 25% or more of the lots in the scheme, or
· 25% or more of the sum of the unit entitlements of all the lots in the scheme.
Disputes about the improvements of common property will be resolved by the State Administrative Tribunal.
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