Contribution Lot Entitlement
The Contribution Lot Entitlement for a lot is appropriately calculated as an estimate of the relative amount of expenses either caused by or benefiting that particular lot.
Interest Lot Entitlement
The Interest Lot Entitlement for a lot is appropriately calculated as the relative market value of the lot compared to all other lots in the community title scheme. The Interest Lot Entitlement is used to distribute the reinstatement and replacement insurance premium for the body corporate between the lot owners and also the rates and the land tax for the scheme land. The local council authorities issue the rates and land tax notices to the respective lot owners.
It is also the share each owner would receive from the proceeds of sale if the community titles scheme was extinguished and the land sold in one undertaking.
If the Interest Lot Entitlement for a lot is different to the Contribution Lot Entitlement, the insurance cannot be included in the administrative fund budget and must be set as a separate fund