Lot entitlements are how body corporate expenses or levy payments are apportioned among the owners. The entitlements are set by the developer when the scheme is established.
There are two types of lot entitlements, known as the contribution schedule and the interest schedule. Contribution schedule entitlements are used to calculate:
- Your share of most body corporate expenses (although some may be divided in a different way)
- The value of your vote in a body corporate meeting.
Interest schedule lot entitlements are used to calculate:
- Your share of the common property and body corporate assets if the scheme is terminated, e.g. for the purposes of redevelopment
- Your share of the unimproved value of the land the scheme sits on, which affects the proportion of local government rates and charges you’ll need to pay.
This doesn’t affect your insurance contribution because that’s treated differently from other body corporate expenses. If your property is in a highrise building, you may pay your insurance share based on the interest schedule lot entitlements.