QLD: Can a caretaker give gift cards to strata committee members?

Question: At the end of the year, can a Caretaker send seasonal gift cards to Committee members as a thank you for their efforts during the year? Would something like a $400 gift card be appropriate?

Answer: Gifts from the caretaker, even done with good intentions, might be an issue.

There may be an issue here with s113 of the Body Corporate and Community Management Act 1997, namely this provision:

1. The body corporate for a community titles scheme must not seek or accept the payment of an amount, or the conferral of a benefit, for—
   
   1. the engagement of a person as a service contractor for the scheme (including a replacement or renewal of an engagement of the person as a service contractor); or
   2. the authorisation of a person as a letting agent for the scheme (including a replacement or renewal of an authorisation of the person as a letting agent); or
   3. extending the term of—
      
      1. an engagement of a person as a service contractor for the scheme; or
      2. an authorisation of a person as a letting agent for the scheme.

A ‘benefit’ here could mean a gift card and it could be argued that a committee member’s acceptance of same was indicative of the body corporate accepting a benefit for the engagement, or extending the term, of the caretaker.

As well, there are restrictions on paying committee members under legislation. Could it be argued that providing gift cards was giving the committee member ‘remuneration, allowances or expenses’ as per s53 of the Standard Module?

There is also an issue of optics here. How might your scenario look to non-committee members? Would they think the caretaker was favouring committee members over other owners? Does it create an expectation of what the committee member might do in future, in relation to the caretaker?

While all of the above might be drawing long bows, I think there’s enough there to suggest that the caretaker’s sending of gift cards, even though done with good intentions, might be an issue.

This post appears in Strata News #622.

Chris Irons
Strata Solve
E: chris@stratasolve.com.au
P: 0419 805 898