Committee Decision Making – Who Decides What?
A common question from lot owners and committee members is: “Who actually has the authority to make decisions in a strata community?”
The answer? It depends on what type of decision is being made.
In Queensland, decision-making is governed by the Body Corporate and Community Management Act 1997, while in New South Wales it falls under the Strata Schemes Management Act 2015 No 50.
While the terminology differs slightly; Body Corporate (QLD) vs Owners Corporation (NSW) – the overall framework is quite similar.
The Two Tiers of Decision Making
Across both Queensland and New South Wales strata communities, there are two main levels where where decisions are made:
1. Committee / Executive committee decisions
2. Body Corporate / Owners Corporation decisions.
Both play an important role, but they are not interchangeable.
Committee Decisions
In Queensland, the committee is responsible for handling the day-to-day running of the scheme. As long as the issue isn’t restricted (more on that below), the committee can make binding decisions on behalf of the body corporate.
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Committee decisions are made by a simple majority
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More votes in favour than against – the motion passes
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Tie – The motion fails. (This is also known as a hung vote)
Limitations – In QLD, committees cannot make decisions on “restricted issues”, such as:
- Changing levies
- Changing by-laws
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High-value spending above spending limits
- Most legal proceedings
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Decisions affecting owners’ rights
In New South Wales, the strata committee plays a similar role to Queensland when it comes to decision making, but operates slightly differently.
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Committee decisions are made by a simple majority
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More votes in favour than against – the motion passes
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The Chairperson can have a casting vote if there is a tie/hung vote (unless the scheme decides otherwise)
Limitations – In NSW, a committee cannot make decisions that are delegated to it by the owners corporation – certain matters must always go to a general meeting.
In terms of authority; QLD committees have a broader default authority (except on restricted issues), and NSW committees rely more on delegated authority as dictated by the Strata Schemes Management Act 2015 No 50.
Body Corporate / Owners Corporation Decisions
In both states, some decisions are too important to be handled by the committee alone. Therefore, such matters are to be decided at a general meeting – either an annual general meeting (AGM) or an extraordinary general meeting (EGM).
The following matters must be decided at a general meeting, where all owners are given an opportunity to vote:
- Setting budgets and levies
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Changing a CMS, or by-laws
- Approving major expenditure
- Legal action (in most cases)
- Changes to common property rights
If a committee makes a decision on a restricted issue, it can create serious complications – especially if others rely on that decision.
Types of Voting Resolutions
Not all Body Corporate or Owners Corporation decisions require the same level of agreement. The respective Acts for each state set different voting thresholds, depending on the importance of the issue.
1) Ordinary Resolution (Most Common)
This is the lowest threshold.
- Simple majority vote – more votes for than against the motion
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Only counts votes actually cast (not total lot owners)
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Applies in both QLD and NSW.
This means even in a large scheme, a motion can pass with relatively few votes if participation is low.
2) Special Resolution
This is used for more significant decisions, like changing by-laws.
In Queensland, a special resolution must meet this three-part test:
- At least two-thirds of votes cast must be in favour of the motion
- No more than 25% of all lots must vote against the motion
- No more than 25% of contribution entitlements must vote against the motion.
All three conditions must be met to achieve a special resolution.
In New South Wales, a special resolution is achieve if no more than 25% of unit entitlements vote against the motion.
3) Resolution Without Dissent / Unanimous Resolution
This is one of the strictest voting requirements, for decisions of the highest level within a strata scheme. Examples include; implementing or removing exclusive use rights, changing lot entitlements, or sale of common property.
In Queensland, to achieve a resolution without dissent:
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Every owner who votes, must vote in favour of the motion
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No votes against the motion are allowed
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Not everyone has to vote in favour – but no one can oppose it. If anyone votes ‘No’, the motion will fail.
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Even owners who are un-financial can vote, and their votes will be counted as valid.
In New South Wales, the equivalent to Queensland’s resolution without dissent is a unanimous resolution. To achieve this:
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No votes against the motion are allowed.
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In some cases, ALL owners must agree.
Can the Committee Refer Decisions to Owners?
Yes. Even if the committee could decide on a matter, it can choose to refer it to a general meeting.
This might happen where:
- The issue is controversial
- Owners should have a direct say
- The committee wants broader support
Final Thoughts…
In short, committees handle everyday matters, and owners make the decisions when it comes to bigger or restricted issues. No single individual can make decisions on behalf of a scheme unless properly authorised.
If you’re unsure whether the right process is being followed, it’s worth checking before any action is taken – because fixing an invalid decision later can be far more complicated than getting it right the first time.
Would you like to learn more on Committee Decision Making? Contact us – we’re happy to help you: www.tcmstrata.com