Key facts at a glance
- The ruleSpending above the major spending limit requires at least 2 quotations
- Default limitThe lesser of $1,100 × lots, or $10,000 (GST inclusive)
- Who sets itOrdinary resolution at a general meeting — no minimum or maximum
- Applies toStandard and Accommodation Module schemes
- Anti-avoidanceA project cannot be split into smaller pieces to duck the limit
The rule in one paragraph
Under the Body Corporate and Community Management Act 1997 and its regulation modules, if the cost of a proposal is more than the scheme's relevant limit for major spending, the body corporate (or the committee, where the committee is deciding) must obtain and consider at least two quotations before the motion is considered. The limit doesn't cap what a scheme can spend — it determines how many quotes must be on the table when the decision is made.
What is your scheme's major spending limit?
Your body corporate can set its own major spending limit by ordinary resolution at a general meeting — there is no prescribed minimum or maximum. If your scheme has never set one, the default applies: the lesser of $1,100 multiplied by the number of lots, or $10,000.
Worked examples: a 5-lot scheme's default is $5,500; a 9-lot scheme's is $9,900; a 12-lot scheme's is $10,000 (because $13,200 exceeds the cap); and a 50-lot scheme's is still $10,000 — the default never rises above $10,000, no matter how large the scheme. That last one surprises people: in any scheme of ten or more lots that has never varied the limit, every project over $10,000 requires two quotes — which captures painting, roofing, waterproofing, driveways, lift contracts, and plenty of routine maintenance.
Schemes registered under the Specified Two-Lot Schemes Module and the Commercial Module do not have spending limits — this article concerns the Standard and Accommodation Module schemes that make up most of Queensland strata.
The five mistakes schemes make
1. Forgetting GST
The limit is assessed against the total amount leaving body corporate funds — GST included. A $10,000-plus-GST roof quote is an $11,000 spend, and in a 12-lot scheme on the default limit, that's over the line: two quotes required.
2. Splitting the project
A body corporate cannot divide a single project into smaller proposals to bring each piece under the limit. If the project is "painting the building," the whole project's cost is what counts — staging the invoices doesn't change the analysis. The Commissioner's office has been explicit on this point.
3. Confusing it with the committee spending limit
They are different numbers doing different jobs. The committee spending limit (default $200 × lots) governs how much the committee can authorise without a general meeting. The major spending limit governs how many quotes are needed. A scheme can set the committee limit above the major spending limit — in which case the committee itself must obtain two quotes for anything between the two figures.
4. Deciding first, papering later
Where a proposal above the limit goes to a general meeting, copies of the quotes (or summaries, with details of where the full quotes can be inspected) must accompany the meeting notice sent to owners. Quotes gathered after the vote don't cure the breach — they exist so owners can compare before deciding.
5. Not knowing what the current limits are
Limits can be varied by ordinary resolution, and in older schemes those resolutions are buried in decades of minutes. If your committee can't state today's figures with confidence, that's worth resolving — some schemes now confirm both limits by declaratory motion at each AGM so there's never doubt.
When is one quote enough?
The modules allow a single quotation in exceptional circumstances where obtaining two is not practicable — the standard example is goods or services genuinely available from only one source. It is a narrow exception, assessed case by case, not a convenience for a committee in a hurry.
Why this matters beyond compliance. Two quotes are only useful if they're comparable — same scope, same inclusions, priced against the same understanding of the job. Two quotes built on different assumptions satisfy the letter of the rule while defeating its purpose — and the record of how the decision was made is what protects the committee when an owner, an adjudicator, or a buyer's solicitor asks years later.
Run the quote cycle properly, keep the record forever.
StrataTrade scopes jobs once and properly, returns structured comparable quotes from verified trades, and keeps every quote, recommendation and decision permanently on the building's record — ready to table.
See how it worksPrimary sources
- Queensland Government — Body corporate spending limitsqld.gov.au
- Body Corporate and Community Management (Standard Module) Regulation 2020QLD legislation register
- Commissioner for Body Corporate and Community Management — spending guidanceqld.gov.au/bodycorporate