One of the most common ways a self-managed committee gets itself into trouble is by deciding something at a committee meeting that it was never entitled to decide there. The works get approved, the money gets spent, and then an owner points out that a decision of that size, or that kind, needed to go to all the owners at a general meeting — and now the whole thing is on shaky ground. A strata scheme has two distinct decision-making bodies, and they are not interchangeable. Knowing which decisions belong to the committee and which must go to a general meeting is one of the most useful things a treasurer or committee member can carry around in their head.
The two decision-making bodies
Every strata scheme in Australia runs on the same two-tier structure, whatever the local names:
- The committee (strata committee, body corporate committee, council of owners, committee of management) — a small group of owners elected to run the scheme's day-to-day affairs between general meetings. It's the operational engine.
- The general meeting — a meeting of all the owners, where the scheme's most significant decisions are made. The AGM is the regular one; extraordinary or special general meetings are called in between when something can't wait.
The committee exists so that owners don't have to gather and vote every time a light needs replacing. But that convenience comes with limits: the committee's authority is delegated, capped, and — crucially — able to be overridden by the owners.
Why the distinction matters to you
- A decision made in the wrong forum can be invalid. Approve something at a committee meeting that legally required a general meeting, and the decision can be challenged and unwound — after the money's spent.
- Owners can overturn committee decisions. In most jurisdictions the general meeting sits above the committee: owners can direct it, restrict it, or reverse its decisions.
- It protects the committee. Staying inside your delegated authority — especially on spending — is what stops an individual committee member from being personally exposed when a decision goes wrong.
- It sets expectations with owners. "Why didn't we get a vote on that?" is a corrosive question. Knowing what genuinely required their vote, and what didn't, lets you answer it cleanly.
What the committee can decide on its own
Broadly, the committee handles the ordinary, operational running of the scheme:
- Routine and reactive maintenance — repairs and upkeep of common property within its spending limits
- Engaging contractors for ordinary works, within the scheme's approval thresholds
- Day-to-day administration — correspondence, record-keeping, arranging insurance renewals, managing the funds operationally
- Enforcing existing by-laws — issuing notices, following the scheme's compliance process
- Preparing for general meetings — drafting the budget, agenda and motions to put to the owners
The committee acts by resolution at properly convened committee meetings (with notice, quorum and minutes), or in some states by other approved means such as a vote outside a meeting.
What must go to a general meeting
Certain decisions are reserved to the owners as a whole, and the committee cannot make them no matter how sensible they seem:
- Setting or raising levies — the budget and the levy amounts are approved by the owners at a general meeting, not decided by the committee alone
- Making, changing or repealing by-laws — this always requires the relevant resolution (usually a special resolution) at a general meeting
- Major or non-budgeted expenditure — spending above the committee's limit, or on items owners have restricted, must go to a general meeting
- Significant capital works — large projects typically need owner approval and a funding decision
- Matters the legislation or the owners have expressly reserved — owners can, by resolution, restrict what the committee may decide
The through-line: money above a limit, rules, and big commitments belong to the owners. Routine operation belongs to the committee.
The spending limit is where most schemes trip
The single most common overstep is expenditure. Committees have a cap on how much they can spend on a single item without owner approval — and the cap, and how it's calculated, varies by state:
New South Wales — Strata Schemes Management Act 2015
In NSW, the strata committee's decisions generally have the same effect as decisions of the owners corporation, but there are important exceptions. The committee cannot determine certain matters — including anything requiring a special or unanimous resolution (such as by-law changes), and matters the owners corporation has decided must be dealt with only at a general meeting.
Owners corporations may also set spending limits on the committee, and there are limits on major expenditure that isn't in the approved budget. When in doubt about a large or unusual spend, take it to a general meeting.
General information only — not legal advice.
Queensland — Body Corporate and Community Management Act 1997
Queensland draws an explicit line between what the committee can decide and restricted issues that must be decided by the body corporate in general meeting — which include setting levies, changing by-laws, and certain other matters set by the regulation module.
The committee is also subject to a spending limit for a single item; spending above that limit generally requires approval by ordinary resolution at a general meeting. The exact limits and restricted issues depend on the regulation module (Standard, Accommodation, etc.) that applies to your scheme.
General information only — not legal advice.
Western Australia — Strata Titles Act 1985
In WA, the council of owners manages the scheme's day-to-day affairs, but significant decisions are reserved to the strata company in general meeting. Following the reforms that commenced on 1 May 2020, some matters — including by-law changes and certain expenditure — must be dealt with by the owners rather than the council.
Owners can also limit the council's authority. For major or unusual expenditure, confirm whether it falls within the council's powers before committing the scheme.
General information only — not legal advice.
Victoria — Owners Corporations Act 2006
In Victoria, an owners corporation may delegate functions and powers to its committee, but some powers cannot be delegated — notably anything requiring a special or unanimous resolution (such as certain by-law and significant financial decisions), which must be decided by the owners corporation itself.
The committee handles ordinary business within its delegated authority; decisions outside that authority belong at a general meeting.
General information only — not legal advice.
The other states and territories — South Australia, Tasmania, the ACT and the Northern Territory — follow the same shape: an elected committee/council for ordinary business, with levies, by-laws and major spending reserved to the owners in general meeting, and committee spending limits set by the legislation or the owners. Confirm your scheme's specific limits before relying on this guide alone.
What happens when a committee oversteps
- The decision can be challenged. An owner can dispute a committee decision made outside its authority, and a tribunal can set it aside.
- The spend may be unauthorised. Money committed beyond the committee's limit, or on a reserved matter, can leave the decision-makers exposed.
- Trust erodes. Owners who feel the committee is making decisions behind their backs are the owners who turn up angry to the AGM — or stop paying attention entirely.
The fix is almost always cheap: when a decision is large, unusual, touches the by-laws, or you're simply not sure, put it on a general meeting agenda and let the owners decide. A short delay to do it properly beats unwinding it later.
Common mistakes
1. Approving a big spend at a committee meeting to "save time"
The most frequent overstep. If it's above your committee's limit or wasn't in the approved budget, it needs the owners — however inconvenient the timing.
2. Trying to change a by-law by committee decision
By-law changes require a resolution of the owners at a general meeting, everywhere. A committee cannot make, amend or repeal a by-law on its own.
3. Not recording committee decisions properly
Committee decisions still need proper notice, quorum and minutes. An undocumented decision is hard to rely on and easy to challenge.
4. Forgetting the owners can overrule you
The committee serves at the owners' pleasure. A general meeting can restrict the committee's powers or reverse its decisions — so keeping owners informed isn't just courtesy, it's how you avoid being overturned.
Frequently asked questions
Can the committee spend money without asking the owners?
Yes, up to its spending limit and within the approved budget, on ordinary operational matters. Above the limit, outside the budget, or on a reserved matter, it needs a general meeting.
Can the committee change a by-law?
No. Making, amending or repealing a by-law requires the appropriate resolution of the owners at a general meeting in every Australian jurisdiction.
What if something urgent comes up between general meetings?
For genuinely urgent operational matters the committee can usually act within its authority (for example, an emergency repair). For urgent decisions that exceed its authority, the answer is to call an extraordinary/special general meeting rather than to overstep.
Can owners overturn a committee decision?
Generally yes. The general meeting sits above the committee and can direct it, limit its powers, or reverse a decision — subject to the process in your state's legislation.
This guide is general information for self-managed strata schemes in Australia. It is not legal advice. Committee spending limits, restricted matters and delegation rules differ between states — always check the strata legislation that applies to your scheme.