Strata insurance issue

Not sure where to post this so apologies if this isn't the right place! My neighbour had somone run in to his garage door in a strata complex, no note left, and a big dent in the door which also then wouldn't open or close. He emailed strata and they told him it was covered by building insurance and he should get it fixed on his own and pay for it then they would reimburse him after lodging an insurance claim. Total cost was $3200 which he paid and sent the invoice to the strata agent. They reimbursed him a total of $2380, which was $3200 minus excess of $500 and GST of $320. They never mentioned that he would have to pay the excess, and our understanding is that if they had paid the invoice there would have been no GST as they are a business and therefor GST exempt? Had he known this he probably would have found a much cheaper option to fix the door.

Anything he can do here, or just have to cop it? Do the strata agents have any obligations to advise hiim of the out of pocket costs to him up front?

Thanks in advance!
Ben

 

Possibly should have been explained a little better initially.
The piece where you state that

is a little insightful.
Just because it is somebody elses money that is being spent doesn't mean that you can spend up. What if the insurance company declined the claim? Not likely in this case but always a risk for the consumer with getting things fixed before insurance approval (ideally in writing)

In this case it appears as though the insurance is content with the invoice submitted and is paying the required amount. Probably will have to wear this one.

 

Don't mix up the issues!

Excess is fair enough - often this is the policy of the owners corp.

I don't see why the owners corporation would not be fully reimbursing inclusive of GST.

 

I fail to see why the strata didnt pay the GST. The insurer wont pay the GST (since the strata can claim it). So when they the original invoice they claim the GST. But this has no impact whatsoever for a cost the strata incurs. Directly or indirectly. Imagine if they got a bill from the AC repairer and decided not to pay the GST. It would go to court.

However if the strata did the repair and then issued a tax invoice for their loss they would be required to add GST even if the original tradie wasnt registered. This comes up with disbursements like water and land tax. If the landlord issues a tax invoice to a commercial tenant then disbursements must have GST added even if the underlying issue was GST free.

 

Your neighbour should be having a terse conversation with the Strata Committee, assuming he/she is in NSW (as per your location), as the OC is responsible for the repair.

And in that conversation the words, "pull your finger out" and "tribunal" should be put forward in a robust manner...

FYI http://www.strataplus.com.au/user_files/Whos-Responsible-SCA-NSW Nov 2014.pdf