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Contribution schedule lot entitlements do not have any direct bearing on the sum of budgeted expenses incurred by a body corporate. The actual amounts levied for a particular year are determined by a body corporate at its annual general meeting when it adopts its budgets. The body corporate’s administrative fund budget covers regular maintenance of the common property and body corporate assets and other recurrent expenditure including administrative expenses such as secretarial fees and postage. The body corporate’s sinking fund budget covers expenditure of a capital or non-recurrent nature such as painting the common property, structural repairs and replacement of major items of a capital nature like fences or common property carpets.
Contribution schedule lot entitlements are also used for calculating the value of a lot owner’s vote for voting on an ordinary resolution where a poll is requested for voting on the resolution. Also, a motion will fail to be passed by special resolution if the total of the contribution schedule lot entitlements for lots voting against a motion is more than 25% of the total contribution schedule lot entitlements for the scheme.
Contribution schedule lot entitlements may also be used to determine a lot owner’s contribution to utility services (for example water and electricity) that are charged according to usage where the service provider cannot measure individual supply.
