Western Australian Current Acts Western Australian Current Acts (1) A strata company
must prepare a budget for each financial year and submit it for approval to
its annual general meeting.
(2) The budget must be
prepared —
(a)
taking into account, if applicable, the 10 year plan for the reserve fund; and
(b) in
accordance with any requirements set out in the regulations and the scheme
by-laws.
(3) The strata company
may, by ordinary resolution at its annual general meeting or at a subsequent
general meeting, approve a budget with or without modification.
(4) The strata company
may, by ordinary resolution, vary its approved budget.
(5) If a budget or a
variation of a budget provides for expenditure on common property under
section 91(2) (other than expenditure on sustainability infrastructure)
exceeding an amount determined under the regulations —
(a)
information regarding that expenditure must be provided to the members of the
strata company as required by the regulations; and
(b) the
budget or variation must be approved by special resolution.
(6) A strata company
must not make any expenditure that is not authorised by an approved budget
except for expenditure as follows —
(a)
expenditure of an amount not exceeding, in a financial year, for each lot in
the strata titles scheme —
(i)
the amount fixed by the strata company by special
resolution; or
(ii)
if the strata company has not fixed the amount by special
resolution, the amount fixed by the regulations;
(b)
expenditure (not being of the kind referred to in subsection (5)) made on the
following conditions being met —
(i)
notice in the approved form of the purpose and amount of
a proposed expenditure is given to the owners and first mortgagees of all lots
in the strata titles scheme; and
(ii)
if the regulations so require, quotations or tenders for
the expenditure are submitted to those owners and first mortgagees; and
(iii)
within 14 days after the requirements in the preceding
subparagraphs are met, objection to the proposed expenditure has not been
notified in writing to the strata company by the owners or first mortgagees of
—
(I) 25% or more of the lots in the scheme;
or
(II) lots of which the
total unit entitlement is 25% or more of the sum of the unit entitlements of
all the lots in the scheme;
(c)
expenditure required by a court or tribunal or by a notice or order given
under a written law to the strata company.
(7) For subsection
(6)(b), if an objection is notified under subsection (6)(b)(iii) by a first
mortgagee of a lot, an objection notified by the owner of that lot must be
disregarded.
(8) This section has
effect subject to any regulations or scheme by-laws that require a special
resolution, resolution without dissent or unanimous resolution or other steps
to be taken for expenditure of a particular class.
[Section 102 inserted: No. 30 of 2018 s. 83.]
[Heading inserted: No. 30 of 2018 s. 83.]