Who decides the strata budget?

Usually the owners collectively approve the strata budget at an annual general meeting. The committee, treasurer and strata manager normally prepare the draft, obtain quotes and recommend figures, but the manager does not have unilateral authority to set the annual budget. The formal decision belongs to the owners corporation, body corporate, strata company or community corporation.

Separate three things: who prepares the numbers, who approves them, and who spends the money. The strata manager usually does the first, rarely the second.

There is rarely one person who controls the whole process. A strata manager may do much of the administrative work, but that does not make the manager the owner of the decision.

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The decision path

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How is a strata budget prepared?

A defensible budget starts with actual costs and known obligations, then adds realistic forecasts. It should fund routine operations and make an evidence-based provision for future capital work. Keeping levies artificially low can create cash shortages, deferred maintenance and a later special levy.

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From approved budget to your levy notice

Approved annual contributions: A$200,000. Illustrative lot share: 1.5%. Annual lot levy: A$200,000 × 1.5% = A$3,000. Billed quarterly: A$3,000 ÷ 4 = A$750 per instalment.

That only illustrates the arithmetic. The legal allocation may use unit entitlement, lot entitlement, contribution schedule lot entitlement or another local rule, and a unanimous or other resolution may be required to depart from the default basis.

What should owners receive before voting?

The meeting pack should provide enough detail to understand the proposed income, expenditure and contributions. Depending on the jurisdiction and scheme, it may include financial statements, the draft budget, fund balances, levy motions, forecasts or maintenance plans, quotes and explanatory notes. Owners can ask for unclear assumptions to be explained before the vote.

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Who approves the budget in each state and territory?

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How can an owner influence the budget?

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Questions to ask the manager or committee

Who prepared the draft? Which owner resolution approves it? What changed from last year? Which costs are fixed or legally required? How does the long-term maintenance plan support the reserve contribution? What authority covers any unbudgeted spending?

Developer and first-AGM schemes

At the first AGM, the original owner or developer may provide the initial accounts and proposed budget. Consumer-protection rules can regulate disclosure, contracts and the handover. New owners should compare the initial forecast with actual insurance, service and defect costs rather than assume the developer's estimate will remain adequate.

Key takeaways

• The committee, treasurer and strata manager commonly prepare the draft budget.
• The owners collectively usually approve the budget at the AGM or a general meeting.
• A manager acts under a contract and delegation and does not normally set the budget alone.
• Budget approval, levy allocation and spending authority are related but legally distinct steps.
• The required resolution, documents and terminology vary by state, territory and scheme type.
• Owners can scrutinise assumptions, submit permitted motions and compare actuals with budget.
• The meeting notice, resolution and minutes are the best evidence of what was decided.

Related questions

Can the strata manager decide the annual budget?

Usually no. The manager may prepare the draft and administer the approved figures, but the owners' legal entity normally makes the required annual decision at a general meeting.

Does the strata committee set the budget?

The committee typically recommends the budget and may hold delegated spending authority, but annual budget approval commonly remains with the owners collectively.

Can owners change the proposed figures?

Often yes, through permitted amendments or an alternative motion — subject to notice rules and the resolution type required in your jurisdiction.

Where can I see who made the decision?

Check the meeting notice, the budget and levy motions, the voting result and the signed minutes. Also review committee delegations and the strata management agreement.

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