Body Corporate Levies and Entitlements

Body corporate levies are typically payable each quarter of the year. The total annual levies that you are responsible for are outlined in the disclosure statement provided to you.

How is my share of body corporate levies and voting rights calculated?

The Contribution Entitlement is a key figure used to calculate how much you owe towards the body corporate's administrative and sinking fund levies, excluding insurance.

Here's how it works:

1. Contribution Lot: This is the specific amount assigned to your lot in the body corporate.
2. Contribution Aggregate: This is the total of all contribution lots in the entire body corporate scheme.

Your share of the levies is determined by dividing your Contribution Lot by the Contribution Aggregate. This ratio represents your proportionate share of the total costs that need to be covered by all the property owners in the body corporate.

For example, if your Contribution Lot is 10 and the Contribution Aggregate is 100, your share of the costs would be 10/100, or 10% of the total levies.

This same ratio also determines your voting power in the body corporate. So, in our example, you would have 10% of the voting rights in decisions made by ordinary resolution. This ensures that your financial contribution is proportionate to your influence in body corporate matters.

What Is Your Interest Entitlement in a Body Corporate?

The Interest Entitlement is an important figure used to determine several key aspects of your financial and ownership responsibilities within a body corporate scheme.

Here's how it works:

• Interest Schedule Lot: This is the specific value assigned to your lot within the body corporate scheme.
• Interest Schedule Aggregate: This is the total value of all interest schedule lots in the entire body corporate scheme.

Your share of certain costs and ownership rights is determined by dividing your Interest Schedule Lot by the Interest Schedule Aggregate. This ratio influences several important areas:

1. Insurance Premiums: Your portion of the body corporate’s insurance premiums is based on this ratio. For example, if your Interest Schedule Lot is 15 and the Interest Schedule Aggregate is 150, you would be responsible for 15/150, or 10%, of the total insurance premium.
2. Common Property Ownership: The ratio also determines your share of ownership in the common property, which includes areas like gardens, pools, and hallways that are shared by all property owners.
3. Scheme Termination: In the event that the body corporate scheme is terminated, this ratio determines your share of the remaining assets or liabilities.
4. Unimproved Value: The Interest Entitlement affects the unimproved value of your lot, which can impact your property’s valuation and rates.

The Interest Entitlement ratio plays a crucial role in determining your financial obligations and ownership rights within the body corporate, ensuring that everything is proportionate to the size and value of your lot compared to the entire scheme.