Disputing Unit Entitlements in NSW: What You Need to Know

What are unit entitlements — and why do they matter?
If you’re part of a strata scheme and suspect your levies are disproportionately high compared to other owners, it’s worth looking at your unit entitlement. In NSW, unit entitlements determine how much each owner contributes to shared expenses, how much voting power they hold, and their share in common property. Ideally, these numbers should reflect the relative market value of each lot.

However, prior to legislative changes in 2016, developers weren’t required to obtain formal valuations when allocating entitlements. This often led to skewed distributions that favoured certain lots, particularly those retained by developers or associated entities, and left others paying more than their fair share. Since 2016, new strata plans must include a valuer’s certificate confirming that entitlements are based on market value. But many older buildings still operate under outdated or inaccurate figures.

When should you consider disputing unit entitlements?
The clearest sign something isn’t right is when you’re paying noticeably more in levies than neighbours with similar or even larger apartments. In many older buildings, entitlements were set without proper oversight, and inconsistencies are common. You might find two-bedroom apartments with near-identical layouts assigned very different entitlements, leaving one owner unfairly contributing more. If your entitlements appear out of proportion and it’s affecting your costs or voting rights, it may be worth challenging them.

How do you dispute unit entitlements?
In NSW, the process typically involves applying to the NSW Civil and Administrative Tribunal (NCAT) under section 236 of the Strata Schemes Management Act 2015. To succeed, you’ll need to show that the current entitlements are, or have become, unreasonable. That could be due to errors when the building was first registered, or because changes like rezoning or approved alterations have shifted the value balance between lots. A key requirement is providing a valuation that assesses the market value of every lot in the scheme at the relevant date. This isn’t a basic desktop estimate. NCAT often expects a comprehensive, building-wide valuation by a qualified expert, which may involve physical inspections.

In most cases, that valuation must reflect market conditions at the time the original strata plan was registered, not today’s values. This can make the process especially complex for older buildings, where the registration date may go back decades. Reliable sales data from that period may be limited, requiring valuers to rely on archived records and historical market insights to support their conclusions. The older the plan, the more challenging and potentially costly the process becomes.

Is a dispute the right course of action?
Challenging unit entitlements isn’t a simple task. It can be time-consuming, technically complex and, in some cases, expensive — especially if other owners oppose the change. But if the financial impact is significant and the current allocation clearly doesn’t reflect your lot’s value, it may be worth pursuing. A successful application can result in fairer levy contributions across the scheme. The key is to seek expert guidance, particularly from a valuer experienced in historical strata assessments, and to weigh the potential benefits against the costs involved.

If you would like to discuss disputing your unit entitlement, please contact us or request a free quote using our online form.