Major Spending Limits: What Owners Need to Know

Have you increased your Major spending limits?

When living in a strata community, financial decisions don’t just affect one homeowner—they impact everyone. That’s why Bodies Corporate must follow specific guidelines when it comes to major spending limits. Understanding these limits—and when they should be updated—can help Lot Owners and Committee Members manage large expenditures more effectively.

What Are Major Spending Limits?

Major spending limits are thresholds that determine how many quotes are required when a Body Corporate is considering a significant expense, whether through a Committee Meeting or a General Meeting.
If no specific major spending limit has been set, the default is the lesser of:

$1,100 multiplied by the number of lots; or
$10,000.

Why Major Spending Limits Matter

Under Queensland legislation, any expenditure above the major spending limit requires at least two quotes. These quotations must be presented and included on the agenda of a General Meeting for approval.

Since 2020, the property industry has seen a sharp rise in costs, particularly for trades and specialist services. This trend, combined with increased demand due to cyclone-related weather events, has made it more difficult for Committees to obtain multiple quotes for certain types of work. As a result, many Body Corporates are needing to hold additional meetings to approve necessary expenses, causing delays and added costs.

How Increasing the Limit Can Help

To avoid unnecessary delays, Body Corporates can propose a motion to increase their major spending limits to better reflect the current market. This can make it easier to approve essential works promptly, without being caught up in repeated quoting issues.

If your Body Corporate has not recently reviewed its major spending limits, now might be the right time to do so.

Keeping major spending limits up to date is a simple but important way to support the smooth operation of your Body Corporate. It helps reduce unnecessary meeting costs, prevents project delays, and ensures your strata community can respond quickly to maintenance needs.