Unit entitlements explained — how strata levies and voting are shared in NSW

The short version

A unit entitlement is a number attached to each lot in a strata scheme that sets that lot's proportion of the whole. Your unit entitlement decides three things: the share of the levies you pay, the weight of your vote on the money questions, and your share of the common property and the building's insurance. The higher your lot's unit entitlement relative to the others, the bigger your slice of the costs — and of the say. It isn't a figure you negotiate; it's fixed when the scheme is created, and you inherit whatever the lot you're buying already carries.

Where the number comes from

When a strata scheme is registered, the developer must lodge a schedule of unit entitlements alongside the strata plan. Under the Strata Schemes Development Act 2015 (NSW), that schedule has to be based on the market value of each lot at the time the scheme is set up, worked out by a qualified valuer. In plain terms, a larger apartment with a better aspect and a car space is usually worth more, so it's given a higher unit entitlement than a small studio on a low floor. The individual figures are added together to make the scheme's aggregate (total), and your lot's share is simply its number over that total.

What the number actually controls

The same proportion runs through most of the important decisions in a strata scheme.

• Your levies. Under the Strata Schemes Management Act 2015 (NSW), the owners corporation levies contributions to the administrative and capital works funds in proportion to unit entitlement. A special levy is split the same way. If your lot carries 10% of the aggregate, you pay roughly 10% of every levy — ordinary or one-off.
• Your vote. On a show of hands at a general meeting, each lot has one vote. But when a vote is decided on a poll — which any owner can call, and which tends to be used for the big financial motions — the votes are counted by unit entitlement, not by heads. Owners of larger lots therefore carry more weight on the decisions that cost the most.
• Your share of the common property. The owners together hold the common property — the roof, the lobby, the lifts, the shared walls — as tenants in common in proportion to their unit entitlements. It's also the basis on which the building's insurance and any shared proceeds are apportioned.

Why it's worth checking, not assuming

Most of the time the schedule is sensible and the number reflects what you'd expect for the size and quality of the lot. But it's worth a look, because the entitlements aren't always even, and an uneven split affects your cost for as long as you own the lot. A penthouse or a lot with exclusive-use of a courtyard or extra parking may carry a disproportionately high entitlement; a scheme with commercial lots on the ground floor may allocate them a share that shifts the balance of both cost and control. If a lot's entitlement looks out of step with its value, that's a question to raise before you sign — not a surprise to discover on your first levy notice.

The schedule of unit entitlements is a public part of the registered strata plan, so you or your conveyancer can confirm the figure for the lot you're buying and see it in the context of the whole scheme. It sits naturally alongside a fuller strata records inspection, which is where the rest of the building's financial picture lives.

What to check before you sign

1. Find your lot's unit entitlement. Read it off the schedule in the strata plan, and note the scheme's aggregate so you can see your proportion.
2. Sense-check it against the lot. Does the share look reasonable for the size, floor and features compared with similar lots? A figure that's out of step means higher costs.
3. Translate it into money. Apply your proportion to the annual budget and any looming special levy — that's your real share, not the headline figure alone.
4. Check the voting effect. If you're buying a small lot in a scheme with a few large ones, understand that a poll can leave you outvoted on spending.
5. Ask about any proposed reallocation. Entitlements can be reallocated by order in limited circumstances — confirm nothing is on foot that would change your share.

Common questions

Can my unit entitlement change after I buy?

Rarely, and not casually. The schedule is fixed when the scheme is registered, and changing it generally requires a formal reallocation — for example by order of the Tribunal or the Registrar General where the original allocation was unreasonable, or where the scheme is altered. For an ordinary purchase, treat the number in the current strata plan as the one you're taking on.

Does a higher unit entitlement mean a more valuable apartment?

It's meant to track market value at the time the scheme was created, so a higher entitlement usually reflects a larger or better lot. But it's a snapshot from when the plan was registered, not a current valuation, and values move at different rates across a building over the years. Use it as a guide to your share of the costs, not as a price tag.

How does this affect my levies exactly?

The owners corporation sets a total budget for each fund, then charges each lot its proportion of that total by unit entitlement. So two things drive your bill: the size of the budget and your share of it. Our strata levies guide explains how the funds and special levies work, and the NSW contract review checklist pulls the strata checks together with everything else.

Is it the same in Victoria?

The idea carries across, but Victoria splits it into two numbers: lot liability (your share of the owners corporation's costs) and lot entitlement (your share of ownership and voting). They can differ, and both are disclosed in the vendor statement — see our Victorian owners corporation guide.