The unit entitlement is a valuation on the basis of the relative value of a unit in relation to the value of the other units shown on a unit plan.
For example, the representative valuation of unit A may be 1500 against the total value of the development being 10,000. The owner of unit A effectively "owns" 1500/10,000 of the total development and their portion of the total body corporate levy due will be assessed on this basis.
If, however, the need to collect a levy is substantially for the benefit of an individual owner or a group of owners, or as a result of the actions of one unit owner, then the body corporate rules will often provide for that unit owner or those owners to be levied for those matters and thus for them to pay an increased share.
Most body corporates are run by either a committee of the body corporate or more commonly, a professional body corporate secretary, especially where there are a large number of units.
The body corporate levy relates to expenditure actually incurred and sometimes a payment towards a sinking maintenance fund if the body corporate deems this necessary.
You are entitled as a unit holder to a breakdown of expenditure and from this information you should be able to identify where the extra costs have originated.
Unless modified, the rules in the act state that any expenditure over $100 or $30 per owner not related to that which the body corporate is legally obliged to pay (such as rates or insurance) or which has not been previously authorised by the body corporate to make must be referred to a general meeting of the body corporate.
It is not uncommon for proprietors to be concerned about the level of their body corporate levies. However it is difficult to establish from your query whether your levy increases are justified.
You are probably aware that since September 11, insurance premiums have increased greatly which has added significant costs to the insurance of body corporates.
Also, it may be that your premises are part of a building that is now in need of significant maintenance or plant replacement, thus necessitating higher levies at this time.
A body corporate can issue proceedings for recovery of unpaid levies or, if the rules provide for it, they can charge penalty interest. As a result of some owners not paying their levies when due, non-defaulting owners may be obliged to pay high levies to ensure funds are available to cover necessary outgoings.
It is not advisable to default on the payment of body corporate levies as outstanding body corporate levies run with the land. Trying to sell your unit with unpaid levies hanging over it may prove difficult.
Further, an owner with unpaid levies may not vote on any resolution unless it is a measure requiring unanimity.
If after you have investigated the cause of the levy increases, you remain dissatisfied with the body corporate's handling of the matter, you can request a special meeting of the body corporate to review or revoke resolutions passed in relation to setting levies.
However, to protect your position you should ensure your tenant pays the levies as required by the lease.
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