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The expenditure by owners on body corporate levies will result in real savings in other areas for those owners. One analysis for one project indicated that there was a $2,100 per year saving from living in the community, which more than balanced the $1,600 per year body corporate levies. Savings are possible in the following areas
- Rates
- Security patrols and home monitoring
- Gym and health club fees
- Insurance
- Broadband
- Electricity
- Lot Entitlements
Lot entitlements are used to determine how the costs and interests associated with community titles schemes are shared between lot owners.
The BCCM Act introduced a dual system of lot entitlements, with each lot having a contribution schedule lot entitlement and an interest schedule lot entitlement:
- The contribution schedule lot entitlement is used for determining the owner’s contribution to most body corporate expenses and the value of a lot’s vote on a poll for an ordinary resolution.
- The interest schedule lot entitlement is used to calculate the owner’s share of common property, the amount of any contribution to insurance premiums, any entitlements to property upon a termination and the unimproved value of the lot for the purpose of separate assessment of rates or taxes.
Each unit owner is obliged to contribute to expenses incurred by their body corporate in carrying out its functions. Expenses commonly include outgoings for maintenance of common property (such as pools, gardens, buildings and driveways) and administrative expenses (such as the cost of engaging a body corporate manager). Lot entitlements are used to determine how costs and interests in a community titles scheme are divided between owners and the voting rights of owners in certain circumstances.
Under the BCCM Act, every lot in a community titles scheme is allocated a contribution schedule lot entitlement and an interest schedule lot entitlement. These lot entitlements are set out in the scheme’s
