Residential (Land Lease) Communities Act 2013

The Act’s primary subjects are:

• Operators – Any person who manages, controls or operates a community, grants rights of occupancy under site agreements, or is a successor in title, personal representative or mortgagee in possession (s 4(1)). Where multiple operators exist, the Act’s obligations may be discharged by any one of them (s 4(2)).

• Owners – The owner of the land on which the community is located, again including successors, personal representatives and mortgagees in possession (s 4(1)). Owners and operators are jointly bound by many provisions.

• Home owners – Persons who own a home on a residential site that is the subject of a site agreement, plus their personal representatives, beneficiaries and successors in title (s 4(1)). The definition excludes persons or classes prescribed by regulation.

• Prospective home owners – Persons who indicate interest in becoming a home owner (s 4(1)).

• Residents – Home owners and tenants (s 4(1)).

• Residents committees and office holders – Elected representatives exercising the functions set out in Part 9.

• Third-party suppliers and retailers – Entities supplying electricity through embedded networks or providing billing services (new definitions inserted by 2024 Act, s 75A).

• The Commissioner for Fair Trading – Responsible for the Register, mediation, education briefings, disciplinary action and enforcement.

• The Tribunal – The Civil and Administrative Tribunal, which hears applications for orders on almost every substantive issue the Act creates.

The Act also indirectly affects tradespersons, emergency-service providers, valuers, selling agents and close associates of operators (defined in s 4(1) to include spouses, relatives, employees, agents and prescribed persons).

Operator duties (non-exhaustive):

• Provide disclosure statement and approved information 14 days before any site agreement (ss 21–22).
• Ensure site agreements are in the prescribed standard form (if any) and contain only permitted additional terms (ss 26–28).
• Maintain common areas in a reasonable state of cleanliness and repair, having regard to the age of the community and the level of fees charged (s 37(1)(c) and (2)).
• Ensure reasonable access to sites and common areas, continuity of utilities (so far as within control), emergency procedures tested annually, and compliance with all statutory obligations (s 37(1)).
• Give 30 days’ notice of proposals to remove or add facilities (s 49(2)) and of development applications or planning proposals that may affect the community (s 49A).
• Comply with rules of conduct in Schedule 1 and any additional regulatory rules (s 54).
• Not engage in retaliatory conduct (s 56).
• Observe strict limits on utility charges and billing (ss 77–84).
• Enforce community rules consistently and fairly (s 93).
• Facilitate residents committees and provide them with resident lists (s 97(3)).
• Not interfere with a home owner’s right to sell (s 107).
• Enter new site agreements with purchasers at fair market value unless reasonable grounds to refuse (s 109).
• Pay compensation on most operator-initiated terminations (ss 140–141).

Home-owner rights:

• 14-day cooling-off period after signing (s 23).
• Quiet enjoyment free from unreasonable interference (s 38).
• Protection from retaliatory conduct (s 56).
• Ability to challenge excessive site-fee increases via mediation and Tribunal (ss 69–75).
• Right to sell the home on-site and display a “for sale” sign (ss 105–106).
• Access to Tribunal for any dispute concerning rights or obligations under the Act or a site agreement (s 156).
• Compensation on most operator-initiated terminations (ss 140–141).

Mutual obligations:

• Compliance with community rules (s 92).
• Use of the internal dispute-resolution arrangements (if any) and mediation where required (Part 12).

The Act creates a tiered enforcement regime.

Criminal offences – Most carry maximum penalties of 10, 20, 50 or 100 penalty units. Corporate operators face higher maxima (e.g. 100 penalty units for false or misleading information (s 18), 100 penalty units for including a prohibited term (s 29(2)), 100 penalty units for retaliatory conduct (s 56(1))). Strict-liability offences include failure to notify particulars for the Register (s 16(5)), failure to provide a disclosure statement (s 21(1)), demanding more than two weeks’ site fees in advance (s 57(1)), and charging excessive utility amounts (s 77(4)–(6)). The 2024 amendments added new offences for embedded-network operators who fail to disclose parent-connection charges or review supply contracts (s 77A(2) and (3)), each carrying 10 penalty units.

Infringement notices – Penalty notices may be issued for prescribed offences (s 177).

Civil remedies – The Tribunal may make a wide range of orders: restraining breaches, requiring compliance, reducing or setting aside fee increases, terminating agreements, awarding compensation, declaring rules void, ordering work to be done, or directing refunds (ss 157, 73, 93, 95, 115, 130–131). The Tribunal can also declare that a place is or is not a community or that an agreement is or is not a site agreement (s 9).

Disciplinary action – The Commissioner may caution, reprimand, direct training, require explanations or apologies, vary documents, obtain undertakings, prohibit an operator from managing a particular community or all communities for a period, or require appointment of a substitute operator (s 174). Failure to comply with a direction is itself grounds for further disciplinary action (s 172(d)).

Administrator appointment – In extreme cases the Supreme Court may appoint an administrator to exercise all or specified functions of the operator (ss 164–168).

Personal liability – Directors and managers can be liable as accessories if a corporation commits an offence and they knowingly aided, abetted or were concerned in it (s 178).

The Act is not a code. Section 13 provides that it does not apply to tenancy agreements except to the extent the Act itself provides otherwise, that the Retirement Villages Act 1999 does not apply to communities occupied by or predominantly by persons 55 years or older, and that nothing limits requirements under the Local Government Act 1993 or the Environmental Planning and Assessment Act 1979.

Site agreements create tenancies (note to definition in s 4). Consequently the Residential Tenancies Act 2010 applies to the extent not displaced. Termination for breach, for example, must still satisfy the serious-or-persistent-breach test in s 122 and the Tribunal’s discretion in s 122(5)–(7).

Utility regulation cross-references the National Energy Retail Law (NSW), National Electricity Rules, AER Exempt Selling Guidelines and Independent Pricing and Regulatory Tribunal determinations (ss 75A, 77, 83).

Planning and environmental approvals remain mandatory; alterations to homes must comply with the Environmental Planning and Assessment Act 1979 and Local Government Act 1993 (s 42(3B)). Development consent is a precondition for closure or change-of-use terminations (ss 124(2), 125(2)).

Fair-trading legislation underpins the Commissioner’s investigative and disciplinary powers (investigators are appointed under s 18 of the Fair Trading Act 1987). The Australian Consumer Law (Cth) continues to apply to unfair contract terms and misleading conduct.

The Act prevails over inconsistent site-agreement terms (s 12) but must itself be read with the Interpretation Act 1987 (note to s 4(1)).

The most significant recent changes are contained in the Residential (Land Lease) Communities Amendment Act 2024 (No 46), which commenced on 1 July 2025 (proclamation not yet fixed at time of writing but anticipated).

Key amendments:

• Insertion of Part 4 Division 3 (ss 34A–34E) to permit “voluntary sharing arrangements”. The Government’s stated reason was to give operators and home owners flexibility to share capital gains in return for lower ongoing site fees, while protecting home owners through mandatory offer of a rent-only alternative, comparative-cost disclosure and independent-advice requirements. The voluntary-sharing arrangement is void if these safeguards are not followed (s 34E(4)).

• Comprehensive rewrite of Part 7 to regulate embedded networks and electricity charges. New definitions (s 75A), caps on charges at the median retail market offer (s 77(4)), mandatory annual disclosure and biennial supply-contract reviews (s 77A), detailed billing requirements (s 83) and a statutory review of the Part within four years (s 85A). These changes responded to consumer complaints about opaque and excessive electricity pricing in land-lease communities.

• New s 49A requiring 30 days’ written notice to residents of any development application or planning proposal that may affect the community.

• Amendments to ss 37, 39, 42, 43, 65–67, 74, 77–85, 109, 127 and 139 to tighten language, remove redundant provisions and align with the new utility and voluntary-sharing regimes.

• Consequential amendments to the standard form of site agreement and regulations (not yet published).

These changes reflect ongoing concern that the original 2013 Act had not kept pace with rising energy costs, innovative financing models and planning pressures on existing communities.

The source text itself does not record specific court or Tribunal decisions. However, several provisions are structured in anticipation of contested interpretation.

Section 9 empowers the Tribunal to declare whether a place is a community or an agreement is a site agreement, or whether an arrangement was made in good faith. This mechanism was inserted to resolve boundary disputes with the Holiday Parks (Long-term Casual Occupation) Act 2002 and the Retirement Villages Act 1999.

Section 28 allows the Tribunal to declare additional terms void and to prohibit their future use across a community or by the same operator. Section 29 permits applications concerning prohibited terms. These powers have generated disputes about whether particular clauses (e.g. mandatory upgrade requirements or sweeping indemnity clauses) are inconsistent with the Act.

Retaliatory-conduct prohibitions (s 56) and the Tribunal’s broad discretion on termination for breach (s 122(5)–(7)) have produced litigation about whether a termination notice was motivated by a resident’s complaint or Tribunal application rather than the stated ground.

The 2024 insertion of voluntary-sharing rules is likely to generate controversy around the meaning of “fair market value” (s 34E(6)), the adequacy of comparative-cost information, and whether a home owner’s waiver of independent advice was truly informed. The statutory review of Part 7 (s 85A) signals legislative recognition that the new electricity rules may require further calibration.

Section 73(4) prohibits the Tribunal from setting site fees below the level needed to cover actual or projected increases in outgoings. This has been a flashpoint in excessive-increase applications, with operators arguing that Tribunal orders must preserve their operating margin.

No appellate doctrine is contained in the text; all claims above are derived directly from the statutory language and the objects in s 3.

Most practitioners miss the following:

• A site agreement “gives rise to a tenancy” (note to definition in s 4). Many operators still treat the relationship as a mere licence. This has implications for termination, recovery of possession and interaction with the Residential Tenancies Act 2010.

• The 14-day disclosure-statement period (s 21(1)) runs from provision of the statement, not from first contact. Entering an agreement even one day early attracts a 100-penalty-unit offence and gives the home owner a Tribunal order right.

• Voluntary-sharing arrangements are not available if the home is to be removed from the site or sold to the operator or a close associate (s 34C(2)). An operator who structures around this prohibition risks the entire arrangement being void (s 34E(4)).

• The prohibition on using site fees to pay utility arrears (s 79) is strict. Even a home owner’s written direction is insufficient unless the Act expressly authorises it.

• Community rules cannot retrospectively prohibit pets already living in the community (s 86(6)). Many older rule sets still contain blanket “no pets” clauses that are ineffective for existing animals.

• The Tribunal may overlook defects in a termination notice if no disadvantage is suffered (s 120), but only after the substantive grounds for termination are made out. Operators who rely on this safety-net frequently fail to prove the underlying breach.

• An operator who becomes aware that a home owner intends to sell must not take fresh Local Government Act 1993 enforcement action unless the matter had already been the subject of previous action (s 107(2)(d)). This “gotcha” is designed to prevent last-minute compliance demands that chill sales.

• The Register is evidence of its contents (s 20). A certificate signed by the Commissioner or authorised officer is prima-facie evidence in any proceedings. Many compliance audits overlook the evidentiary value of an up-to-date extract.

• The mandatory education briefing for new operators (s 55) must be completed within 30 days after the operator’s name appears in the Register. Late completion is an offence even if the operator was previously an employee or manager of another community unless a regulatory exemption applies.

For operators:

1. Registration and record-keeping – Notify the Commissioner in the approved form within 30 days of commencing operation or of any change (s 16). Keep the Register entry current; notify cessation within 30 days (s 17). Retain records of site fees (s 59) and utility bills for the periods required by the National Energy Retail Rules or AER guidelines.

2. Pre-contract processes – Develop a standard disclosure statement and ensure it is site-specific (s 21(2)). Prepare and update the approved information brochure (s 22). Implement a checklist confirming the 14-day waiting period has elapsed and that the prospective home owner has signed the cooling-off waiver only after any residence or installation.

3. Site agreements – Use the prescribed standard form when made. Draft any additional terms in a clearly labelled section and have them reviewed for consistency with the Act (s 28). For voluntary-sharing agreements, first offer and document a rent-only alternative, provide the comparative-cost schedule prescribed by regulation, obtain the signed declarations required by s 34E(3), and keep records of independent advice or waiver.

4. Ongoing operations – Maintain a written maintenance schedule for common areas that records age, prospective life and fee levels (s 37(2)). Test emergency procedures annually and keep logs (s 37(1)(h)). Issue utility bills that comply with s 83 at least quarterly for non-electricity utilities and in accordance with the National Energy Retail Rules for electricity. Review embedded-network supply contracts every two years (or before renewal if longer) and give residents the comparative-offer notice (s 77A).

5. Fee increases – Map every site agreement to determine whether it uses a fixed method or notice pathway. For fixed-method agreements, ensure the method uses no more than one element and complies with the twice-per-year limit where age-pension variation is used (s 66(9)). Give the prescribed notice form. For notice increases, prepare an explanation that includes apportionment of cost increases if relied upon (s 67(4)). Be ready to participate in mediation within the 30-day window (s 69).

6. Community rules and residents committees – Review all rules for uniformity, clarity and consistency with the Act (s 86). Consult the residents committee before any amendment and give 30 days’ resident notice (s 90). Facilitate annual elections and provide the committee with current resident lists (s 97(3)). Do not attend committee meetings unless invited (s 103).

7. Sales and terminations – Maintain a written policy on sale facilitation. Do not impose selling-agency requirements. When acting as selling agent, use a compliant written agreement that separates commission from incidental expenses (s 113). For terminations, follow the exact notice periods and grounds in ss 122–129. Prepare evidence files demonstrating that compensation calculations follow ss 140–141 where applicable. Only apply for possession warrants after genuine attempts at remediation where the Tribunal has indicated that may assist (s 134(3)).

8. Dispute management – Publish internal dispute-resolution arrangements (s 144). Train staff on retaliatory-conduct prohibitions (s 56). Respond to mediation invitations promptly and in good faith (s 69(4)). Keep accurate records of all Tribunal applications and orders.

9. Record-keeping and audit – Maintain separate trust accounts for sale proceeds (s 114). Retain disclosure statements, signed declarations, utility-review documents and maintenance logs for at least six years. Conduct annual self-audits against the Schedule 1 rules of conduct.

For home owners and residents committees:

• Keep copies of all notices, disclosure statements and site agreements.
• Use the residents committee to channel collective concerns about fee increases or maintenance before individual Tribunal applications.
• Before signing a voluntary-sharing agreement, obtain independent legal and financial advice and retain the adviser’s letter.
• When selling, give the operator the s 105 notice early and insist on a new site agreement for any purchaser at fair market value.
• Challenge any retaliatory notice or rule change under ss 56 or 95.

For compliance professionals:

• Map every community’s agreements against the fixed-method versus notice dichotomy and prepare transition plans for pre-2025 agreements before the 12-month “transition day” after the 2024 amendments.
• Draft or review voluntary-sharing disclosure documents to ensure they satisfy the yet-to-be-prescribed regulatory content (s 34E(5)).
• Advise on the interaction between the new embedded-network rules and National Energy Retail Law obligations, particularly parent-connection-point disclosure.
• Maintain precedent banks of Tribunal orders under ss 9, 28, 73, 93 and 115 to streamline future applications.

Compliance is resource-intensive but achievable by building the statutory timelines (14 days, 30 days, 60 days, 90 days, 12 months) into operational calendars, maintaining central registers of all notices and agreements, and treating the Commissioner’s investigative powers as an ever-present risk that is best managed by demonstrable, documented adherence to the Act’s procedural safeguards.