Why are shared service costs charged by lot liability instead of split equally among all lot owners?

Under owners corporation legislation, the reason these costs are paid using the lot liability method rather than split equally relates to the way lot liability is defined and applied under the law. In Victoria, the lot liability method is the default method used for cost sharing, and the lot liability of each lot is assigned when the plan of subdivision is registered. It reflects each lot’s proportionate share of owners corporation expenses and is usually based on the relative value or size of each lot.

The lot liability method is the standard method under the legislation for cost recovery due to its simplicity (what is equal and what is not?), consistency, and presumed fairness with regards to larger and higher value lots. With this being said, costs can be shared equally; however, this requires a unanimous resolution, and the change must be formally recorded properly.