Does All Committee Expenditure Need To Be Recorded?

Yes. As a rule, all committee expenditure must be formally recorded in the scheme's financial records, no matter how small the amount. Every strata scheme in Australia has to keep proper accounting records, and spending scheme funds without documenting them can expose the committee to disputes, audit problems, and personal accountability. The rule is simple: if money leaves the scheme's account, there is a record of what it was for, who approved it, and where the paperwork sits.

But "recorded" is not the same as "voted on at a formal meeting." There is an important difference between keeping a financial record (essentially always required) and approving expenditure through a formal decision (which depends on the amount, the type of spending, and your state's rules). This article covers both.

What does "formally recorded" actually mean?

Two ideas get tangled together, so it helps to separate them:

1. Financial record-keeping is the obligation to document money in and money out. It applies to every transaction, full stop.
2. Authorisation of spending is the decision that permits the money to be spent in the first place. This is where thresholds, meeting requirements, and delegation come in.

A lot of committee confusion comes from assuming these are the same thing. A $40 reimbursement for cleaning supplies still needs a receipt and a ledger entry (record-keeping) even if it never needed a formal committee vote (authorisation).

The record-keeping obligation

Every state and territory requires the owners corporation or body corporate to keep accurate financial records. In New South Wales this sits within the Strata Schemes Management Act 2015 (opens in a new tab) and the Strata Schemes Management Regulation 2016. Equivalent duties apply under the Body Corporate and Community Management Act in Queensland, the Owners Corporations Act in Victoria, the Strata Titles Act in Western Australia, the Community Titles Act in South Australia, the Unit Titles (Management) Act in the ACT, the Unit Titles (Schemes) Act in the Northern Territory, and the Strata Titles Act in Tasmania.

The terminology differs (owners corporation, body corporate, committee, treasurer), but the underlying principle is the same everywhere: the scheme's money is not private money, and it has to be accounted for.

Why does recording every dollar matter?

For a self-managed committee, good records are protection, not busywork:

• Transparency for owners. Any lot owner is generally entitled to inspect the scheme's financial records. If they ask, you need to be able to show them.
• A clean audit trail. Many schemes are audited by requirement or by choice. Undocumented spending is the fastest route to a qualified audit and an awkward AGM.
• Protection for committee members. A clear record of what was bought, why, and who approved it is what protects an individual from an allegation of misuse.
• Reimbursement clarity. Treasurers often pay out of pocket and claim it back. Without a receipt and a record, those claims become contestable.
• GST compliance. Where a scheme is registered for GST, invoices and receipts are needed to claim credits and lodge correctly.

Dispute bodies take this seriously. In NSW, disputes over financial records and committee conduct can end up before NCAT, with equivalent tribunals in every state and territory (QCAT in Queensland, VCAT in Victoria, SACAT in South Australia, ACAT in the ACT, and the State Administrative Tribunal in Western Australia). Poor records are a common thread running through these matters.

Does small or urgent spending still need recording?

Yes. There is no "too small to bother" exemption. A minor purchase, a petty cash payment, or an urgent after-hours plumbing callout all have to be captured.

What urgency or size can change is the authorisation process, not the recording process. Many schemes let the committee, or the treasurer within committee-approved limits, authorise routine or emergency spending without waiting for a general meeting. Even then:

• Record the spending as a committee decision, in the minutes or a decision register.
• Keep the invoice or receipt.
• Note the reason for the urgency where relevant.

If your committee approves something outside a meeting, such as by email or a vote without a meeting, that decision still needs to be documented and, at most schemes, reported at the next meeting.

When does expenditure need a formal decision, not just a record?

This is where the answer genuinely varies by jurisdiction. Broadly, strata laws distinguish between:

• Routine spending the committee can approve within its ordinary powers or a delegated budget.
• Larger or non-budgeted spending that may require an ordinary or special resolution of owners at a general meeting.
• Restricted matters such as major works, significant contracts, or borrowing, which often need a higher approval threshold.

The committee's power to spend, and the point at which owners must vote, is framed differently in each state and territory. The table below sets out how committee authority and the special resolution threshold are defined across the jurisdictions.

A few things the table cannot capture:

• Spending limits are usually set by owners, not just legislation. Owners can resolve at a general meeting to cap what the committee spends without further approval, or to require quotes above a set value. Check your scheme's own resolutions and by-laws, because they sit on top of the statutory baseline.
• "Restricted" or "major" spending is treated separately. Big-ticket items like capital works, large contracts, and legal action frequently attract stricter approval regardless of the general committee limit.
• Delegation must itself be recorded. If owners delegate spending authority to the committee, or the committee delegates day-to-day payments to the treasurer, document that delegation so everyone knows the boundaries.

Even when an owner vote is not required, a decision to spend is still a decision, and decisions belong in the minutes.

What records should a treasurer actually keep?

A practical, defensible record set for a self-managed scheme:

• Invoices and receipts for every payment, filed so they can be matched to bank transactions.
• A cash book or ledger (or accounting software) showing money in and money out.
• Bank statements for the administrative fund and the capital works or sinking fund (names vary by state).
• Minutes or a decision register showing what was approved and by whom.
• Reimbursement claims with supporting receipts.
• Records of any delegated authority or spending limits set by owners.

A simple habit keeps this manageable: reconcile the bank account against your ledger and receipts once a month rather than scrambling before the AGM. Retention periods vary by jurisdiction, but a common expectation is several years, so when in doubt keep records longer rather than shorter. Each state's consumer regulator publishes guidance on record-keeping and inspection rights, including NSW Fair Trading, the Office of Fair Trading in Queensland, and Consumer Affairs Victoria.

What happens if expenditure is not properly recorded?

The consequences run from inconvenient to serious:

• Owner disputes. Undocumented spending is one of the most common triggers for complaints and tribunal applications.
• Personal exposure. Committee members who authorise or make unrecorded payments may be asked to account for them personally.
• Audit and reporting failures. Missing records can cause an auditor to qualify the accounts and undermine owner confidence.
• Regulatory attention. Persistent failures to keep proper records can attract enforcement by the relevant regulator.

This is entirely avoidable. Receipt in, record made, decision noted keeps a self-managed committee on the right side of the law and out of unnecessary conflict.

The bottom line

All committee expenditure should be recorded in the scheme's financial records, with no exception for small or urgent amounts. Whether it also needs a formal vote depends on the size and type of spending, your state or territory's rules, and your scheme's own resolutions. Treat record-keeping as non-negotiable and treat authorisation as the part that changes with the situation.

Frequently asked questions

Do we need to record petty cash and small reimbursements?

Yes. Every payment from scheme funds, petty cash and small reimbursements included, should be supported by a receipt and entered in the financial records. Small size does not remove the obligation.

Can the treasurer approve spending on their own?

Only to the extent the committee or owners have delegated that authority, and usually within a set limit. Document the delegation, and record and report the payments back to the committee.

Does emergency spending still need to be recorded?

Yes. Urgency may change how the spending is authorised, such as a quick committee decision instead of waiting for a general meeting, but it never removes the need to keep a receipt and record the decision, ideally with a note explaining the urgency.

Who can see the scheme's financial records?

Generally any lot owner can inspect the scheme's financial records, often on request and sometimes for a small fee. That is a strong reason to keep records complete and organised all year, not just before the AGM.

Where do the rules on spending limits come from?

They come from a mix of your state or territory's strata legislation and your scheme's own resolutions. The legislation sets the baseline for committee powers and voting thresholds, while owners can add their own spending caps or quote requirements at a general meeting.