Campbell Marque [2006] QBCCMCmr 545 (26 October 2006)

Last Updated: 19 December 2006

REFERENCE: 0859-2006

ORDER OF AN ADJUDICATOR

MADE UNDER PART 9 OF CHAPTER 6

BODY CORPORATE AND COMMUNITY MANAGEMENT ACT 1997

Number of Scheme:	24172
Name of Scheme:	Campbell Marque
Address of Scheme:	21 Campbell Street TOOWONG QLD 4066

TAKE NOTICE that pursuant to an application made under the abovementioned Act by

Kenneth Alan Mayes and Carole Susan Mayes, the owners of lot 1

I hereby order that for the purposes of the Body Corporate and Community Management Act 1997 ("the Act") and pursuant to section 283 of the Act, the next financial year end date of the Body Corporate for Campbell Marque Community Titles Scheme 24172 shall be 30 June 2007, in place of the previous financial year end date. I further order that thereafter, each successive financial year for the Body Corporate for Campbell Marque Community Titles Scheme 24172, shall commence on 1 July and terminate on 30 June, respectively.

STATEMENT OF ADJUDICATOR’S REASONS FOR DECISION - REF 0859-2006

"Campbell Marque" CTS 24172

Kenneth Alan Mayes and Carole Susan Mayes (the applicants), the owners of lot 1 and body corporate managers for "Campbell Marque" Community Titles Scheme 24172 have sought an order of an adjudicator under the Body Corporate and Community Management Act 1997 (the Act) that the financial year be altered from starting on 1^st August to start on 1^st July.

Section 276(1)(b) of the Act provides that an adjudicator may make an order that is just and equitable in the circumstances, to resolve a dispute, in the context of a community titles scheme, about the exercise of rights or powers, or the performance of duties under this Act or the community management statement. An adjudicator’s order may contain ancillary or consequential provisions the adjudicator considers necessary or appropriate (section 284(1) of the Act).

Section 283 of the Act specifically provides –
283. Change of body corporate’s financial year.
With the consent of the body corporate, the order of the adjudicator may include a change of the body corporate’s financial year and of the dates when later financial years begin.

The applicants state that, at present, the financial year of the body corporate is not aligned with fee collection periods or the financial year of the Australian Taxation Office. This causes extra work and expense in accounting and auditing the books and records of the body corproate, as well as lodgement of business activity statements and the annual taxation return. For these reasons it is more practical to have the financial year end of the body corporate aligned with the financial year end of the Australian Taxation Office of 30 June. I note that the body corporate, at its most recent AGM, resolved (by 14 to 0) to change the financial year end date from 31 July to 30 June (see page 4 of relevant minutes).

In the circumstances, I am satisfied that the body corporate has properly consented to the proposed change of the body corporate’s financial year and that it is appropriate to make an order changing its financial year-end date to the proposed date.

This order results in the body corporate having a one-off 11 month financial period. The body corporate should ensure provision has been or will be made for this in budgets, levies, etc.