14AIncrease in recurrent charges

14A Increase in recurrent charges

[Section 14A Inserted by No. 35 of 2023, s. 6, Applied:27 Nov 2023]

(1)  In this section –

CPI figure for Hobart means the Consumer Price Index: All Groups Index Number for Hobart published by the Australian Statistician under the authority of the Census and Statistics Act 1905 of the Commonwealth.

(2)  The operator of a retirement village may not increase recurrent charges payable by the residents of that retirement village unless –

(a) the operator submits, to a meeting of residents and tenants of that retirement village convened under section 14(1)(b) , a written explanation that demonstrates that the increase in recurrent charges is reasonable in the circumstances, having regard to the accounts for the previous financial year and the estimates for the current financial year; and

(b) in a case where the increase in recurrent charges exceeds the CPI increase amount for those recurrent charges –

(i) the increase is authorised at the meeting by a resolution passed by at least 65% of the residents and tenants voting, either personally or by proxy, and entitled to vote at the meeting; or

(ii) the increase in excess of the CPI increase amount is attributable to any one or more of the following:

(A) an increase in rates, taxes or charges payable under an Act in respect of the land in the retirement village;

(B) an increase in the salaries or wages payable to the manager of the retirement village, or a person employed for the purposes of the retirement village’s operation, as a consequence of a change in award, registered agreement or other industrial instrument;

(C) an increase in insurance premiums, or insurance excesses paid, in relation to the retirement village or its use;

(D) any other prescribed reason.

(3)  For the purposes of subsection (2)(b) , in determining any increase in recurrent charges payable in respect of a retirement village, an increase in a recurrent charge is only to be included to the extent that the increase is attributable to expenses relating to that retirement village.