Can a special levy be split evenly rather than according to unit entitlement?
In this month’s Strata Q&A, we received a question from David W from the Northern Territory, who is unsure about the way a recent special levy was divided among all owners. Can levies be divided evenly rather than by unit entitlement, and is this a fair way to split expenses?
Q. Can a special levy be split evenly rather than according to unit entitlement?
We’re owners in a small apartment building in the Northern Territory that we self-manage without an agent. Our apartments vary in size, some are one-bedroom, others are two or three. We recently agreed at our AGM to raise a special levy to cover gutter, roofing, and repainting works. However, our treasurer issued equal levy amounts to all 12 owners, saying it’s easier to just split it evenly since it’s a one-off expense. Our normal quarterly levies are based on unit entitlements and are all different. Is it actually allowed to split a special levy evenly like this?
A. The short answer is no. All levies (contributions) for common expenses must be calculated in proportion to the unit entitlements assigned to each lot.
The short answer is no. Your body corporate can’t just decide to split levies equally unless certain legal conditions are met. Under the Unit Title Schemes Act 2009 (NT), all levies (contributions) for common expenses must be calculated in proportion to the unit entitlements assigned to each lot on the registered scheme plan. This applies to both regular and special levies.
The only exception is if all owners unanimously agree to use a different method, such as dividing the cost evenly. Without that unanimous resolution, levies must be raised according to unit entitlements — otherwise, they may not be legally enforceable if recovery action is needed.
To make sure your levy process complies with NT body corporate law:
Check the registered scheme plan for each lot’s unit entitlement — they’re unlikely to all be the same.
Recalculate the levies based on those entitlements.
If everyone genuinely prefers equal levies, pass a unanimous resolution and record it properly in the meeting minutes.
Have the treasurer reissue the levy notices in the correct form to keep things compliant and transparent.
Following these steps ensures your special levies are fair, enforceable, and consistent with Northern Territory strata legislation — protecting both your finances and your building’s integrity.
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