Think your strata entitlement is unfair? Changing it is possible — but far from automatic
A strata unit entitlement can look like just another number buried deep in the paperwork. It isn’t. That number can have a lasting effect on what an owner pays and their financial interest in the scheme. That’s what makes Sydney Gold Bullion Exchange Pty Ltd v The Owners – Strata Plan 34794 [2026] NSWCATAP 75 worth understanding — although the decision isn’t quite the story of retrospective correction it might first appear to be.
The dispute concerned a commercial strata building at 70–70A Castlereagh Street in Sydney CBD. Strata Plan 34794 was registered in 1989 and, after subsequent subdivisions, ultimately comprised 31 lots. Sydney Gold Bullion Exchange owned Lots 33 and 34 and sought orders under s 236 of the Strata Schemes Management Act 2015 (NSW) to change the scheme’s unit entitlements, along with compensation.
Here’s the important part: NCAT did not retrospectively reallocate those unit entitlements. The original application was dismissed, and the Appeal Panel upheld that outcome in 2026. A major difficulty was the valuation evidence needed to support the s 236 application.
| Issue | What the law and case tell us | Why owners should care |
| Unit entitlements | Affect levy contributions and interests in common property | A number on the strata plan can have long-term financial consequences |
| Reallocation | NCAT has power under s 236 to change entitlements | Change is possible, but isn’t automatic |
| Statutory test | The allocation must fall within the grounds for being unreasonable | Thinking your levies seem unfair isn’t enough |
| Valuation evidence | Proper valuation material is essential | Weak or incomplete evidence can derail a claim |
| Owners corporation | No general duty to bring a reallocation application for owners | An affected owner may need to pursue the issue personally |
Section 236 can fix a problem — but it isn’t a reset button
Section 236 gives NCAT power to reallocate unit entitlements in specified circumstances. Among them is where the original allocation was unreasonable when the strata plan or relevant subdivision was registered, or where it later became unreasonable because of a change in the permitted use of a lot. The Tribunal considers the respective values of the lots and can take other relevant matters into account.
The crucial word is “may”. Even where an owner brings an application, reallocation remains discretionary.
Then there’s the evidence. The legislation requires the application to be accompanied by the prescribed valuation certificate. In this dispute, the earlier decision found that the material provided did not establish that the relevant allocation was unreasonable. The valuation issue also extended beyond simply examining the lots whose numerical entitlements the applicant wanted changed. Lots whose proportional interests would be affected by the proposed reallocation mattered too.
The appeal produced another useful lesson for strata owners. The Appeal Panel confirmed that an owners corporation does not have a general statutory or common-law duty to apply to NCAT to correct unit entitlements, even where it considers the existing allocation may be wrong or has previously resolved to pursue a change. Lot owners themselves have access to the s 236 process.
That also means an owner shouldn’t assume that discovering a questionable entitlement will lead to years of historical levies being recalculated and handed back.
For prospective buyers, it’s much better to understand the numbers before exchange. Ask:
- What is this lot’s unit entitlement?
- How does it compare with apparently similar lots?
- What are the current administrative and capital works fund levies? • Are special levies underway or proposed?
- Do meeting minutes reveal entitlement disputes?
- Is there current or threatened NCAT litigation?
- Are there valuation reports or resolutions dealing with reallocation?
The lesson from Sydney Gold Bullion Exchange isn’t that old strata allocations can easily be rewritten. It’s almost the reverse: NSW law provides a mechanism for correcting unreasonable unit entitlements, but using it successfully requires the right statutory case and the evidence to back it up.
Flash Conveyancing Advice
When buying strata property, don’t judge the financial position of the lot from the quarterly levy alone. Look at its unit entitlement, the scheme’s aggregate entitlement, recent budgets, capital works planning, special levies and meeting minutes. If the figures appear seriously out of proportion, investigate before exchange rather than assuming NCAT can easily sort everything out afterwards.
Flash Conveyancing, led by Julian & Renee, specialises in property transactions throughout NSW. Strata purchases can appear beautifully straightforward when you’re standing inside a freshly renovated apartment or well-presented commercial suite. Much of what matters, however, is hidden in the scheme’s paperwork rather than behind the front door.
A careful pre-purchase review can reveal levy history, special levies, planned capital works, disputes, litigation and other features that may affect the true cost of ownership. Unit entitlements deserve attention as part of that picture. But Sydney Gold Bullion Exchange is a useful warning against assuming that an allocation which looks unfair can simply be “fixed”. A s 236 application may require specialist strata advice and appropriate valuation evidence, and NCAT ultimately decides whether an order should be made.
There’s another expensive assumption worth avoiding. An apparently excessive unit entitlement does not automatically give an owner a right to recover historic levy payments from the owners corporation. In this case, the Appeal Panel upheld the finding that the owners corporation did not owe the asserted duty to pursue a reallocation, which also undermined the associated compensation claim.
Julian and Renee personally oversee files as part of Flash Conveyancing’s boutique, human-led service. According to the practice’s own procedures, settlement payment directions are directly voice-verified, while confidential client information is supported by offline local-storage measures.
Flash Conveyancing assists clients throughout Sydney, Newcastle and Wollongong, together with Blacktown, Hawkesbury, the Blue Mountains, The Hills, Hornsby and Parramatta. The practice also services Acacia Gardens, Angus, Arndell Park, Blacktown, Colebee, Glendenning, Glenwood, Grantham Farm, Kellyville Ridge, Kings Langley, Marsden Park, Melonba, Oakhurst, Parklea, Quakers Hill, Riverstone, Schofields, Seven Hills, Stanhope Gardens, Tallawong, The Ponds, Baulkham Hills, Beaumont Hills, Bella Vista, Castle Hill, Kellyville, Kenthurst, North Rocks, Northmead, Rouse Hill, Vineyard, Windsor, Annangrove, Box Hill, Cattai, Dural, Gables, Galston, Glenhaven, Glenorie, Maraylya, Middle Dural, Nelson, North Kellyville, Norwest and Winston Hills.
Sydney Gold Bullion Exchange leaves strata owners with a useful reality check: unit entitlements aren’t necessarily carved in stone, but changing them takes considerably more than showing that the numbers look unfair. In strata, the figures matter — and so does the evidence behind them.
