Unit entitlements or lot entitlements are numbers assigned to each lot in a strata, unit title or community title scheme. They express that lot's relative share within the scheme and may be used to calculate strata levies, voting power, ownership of common property, or responsibility for particular expenses.
Terminology and legal effect differ across Australia. NSW, the ACT, Western Australia and South Australia commonly use "unit entitlement". Queensland uses "lot entitlements", including separate contribution and interest schedules. Victoria separates "lot entitlement" from "lot liability". A higher entitlement often means a larger share of costs or voting rights, but the exact result depends on the state, the registered plan and the type of expense or vote involved.
A unit entitlement (called a lot entitlement in some states) is a number on the registered strata plan that sets each lot's share of the scheme. It decides how much of the strata levies that lot pays, how much voting power it carries on entitlement-based votes, and how much of the common property it owns.
An entitlement number represents a lot's proportion of the total entitlements allocated to the scheme. The number has meaning only when compared with the aggregate entitlement for all lots. For example, if a scheme has an aggregate entitlement of 1,000 and one apartment has an entitlement of 80, that apartment represents 8% of the total entitlement. If an eligible $100,000 expense is divided strictly by that entitlement, the lot's share would be $8,000. Actual levy calculations can differ because state laws and scheme schedules may use different allocation rules for particular expenses.
Depending on the state or territory, an entitlement may affect one or more of the following:
Not every expense and not every vote is necessarily calculated by entitlement. Some decisions use one vote per lot, and some expenses may be allocated under a different schedule or statutory rule.
In NSW, the unit entitlement shown on the registered strata plan represents the lot's share of common property. New and revised schedules are generally apportioned on a market-value basis and certified by a qualified valuer. Annual and special levies are generally calculated in proportion to each lot's unit entitlement. However, not every vote is weighted by unit entitlement. For a general resolution, each lot normally has one vote; entitlement becomes relevant when a poll is demanded and for certain statutory thresholds.
Queensland commonly uses two separate schedules, so owners should not assume that one number controls every issue. The contribution schedule lot entitlement determines each owner's share of most body corporate expenses and the value of the owner's vote if a poll is called on an ordinary resolution. The interest schedule lot entitlement determines the owner's share of common property and scheme assets and liabilities, and certain costs that legislation allocates using the interest schedule, including some building insurance costs. A lot may have one contribution entitlement and a different interest entitlement.
Victoria separates ownership and voting from expense liability. Lot entitlement refers to the lot owner's share of common property and determines voting rights. Lot liability represents the share of owners corporation expenses that the lot owner is required to pay. A Victorian lot can therefore have a lot entitlement that differs from its lot liability. Owners and buyers should check both figures on the plan of subdivision rather than relying on only one number.
No. Entitlements can determine your proportionate interest in common property, but they do not define the physical boundaries of your private lot. Lot boundaries are determined by the registered strata, units or subdivision plan and the applicable legislation.
In many schemes, the approved annual budget is divided between owners according to the applicable entitlement or liability schedule. A simple entitlement-based formula is: your entitlement ÷ total scheme entitlement × eligible scheme expense. For example: 80 ÷ 1,000 × $100,000 = $8,000. This is only a general illustration — actual calculations may differ for insurance, utility services, exclusive-use areas, multiple owners corporations, mixed-use developments, special benefit rules or state-specific contribution schedules.
Yes, but they usually cannot be changed informally. The process is state-specific and may require a qualified valuation, a particular level of owner approval, registration of an amended schedule, or an order from a tribunal or court. A change may be considered when the original allocation was unreasonable, lots are subdivided or consolidated, common property is added or removed, a development stage creates new lots, or a state-specific legal process permits reallocation. Changing an entitlement can affect every owner's levies, voting power or property interest.
The same entitlement number can produce a different levy share and a different vote depending on where the scheme is. These examples all use a 20-lot building with an aggregate entitlement of 1,000, one apartment holding 80 entitlements (8%) and an approved annual budget of $100,000.
Levies: the owners corporation divides the administrative fund and capital works fund budgets in proportion to unit entitlement, so this lot is levied 80 ÷ 1,000 × $100,000 = $8,000 a year, usually billed quarterly. Voting: at a general meeting the lot has one vote on a show of hands like every other lot. If a poll is demanded, the vote is counted by unit entitlement instead, so the lot carries 80 of the 1,000 votes cast — 8% of the weight rather than 5%.
Levies: most body corporate contributions follow the contribution schedule. If the lot’s contribution schedule entitlement is 80 of 1,000, the ordinary levy is $8,000. Insurance and some other costs follow the interest schedule instead — if the interest schedule entitlement for the same lot is 95 of 1,000, its share of a $40,000 insurance premium is $3,800, not $4,000. Voting: on an ordinary resolution each lot has one vote, but if a poll is called the vote is weighted by the contribution schedule entitlement.
Levies: fees follow lot liability, not lot entitlement. If the lot’s liability is 70 of 1,000 it pays $7,000 of the $100,000 budget. Voting: entitlement drives voting power, so with a lot entitlement of 80 of 1,000 the lot carries 8% of the vote on a poll while paying 7% of the costs.
Levies: contributions are levied in proportion to unit entitlement, which a licensed valuer sets by reference to the relative capital value of each lot, so a top-floor lot valued higher than a ground-floor lot of the same size pays more. An 80 of 1,000 entitlement gives an $8,000 share. Voting: ordinary resolutions are one vote per lot; a poll is decided by unit entitlement.
Levies: unit entitlement is the ratio of the unit’s capital value to the total capital value of all units, and contributions follow that ratio, giving an $8,000 share on 80 of 1,000. Voting: unit entitlement is used where a poll is taken; otherwise each unit has one vote.
Levies: general fund and sinking fund contributions are set in proportion to unit entitlement, so 80 of 1,000 gives $8,000. Voting: an ordinary vote is one per unit, and a poll is decided by unit entitlement, which also matters for the higher thresholds used for special and unanimous resolutions.
[[callout:0]]
Compare written fee proposals from strata managers covering your building — free for owners corporations, no obligation.