Part 1
3 Consent requiring special resolution 196
Part 1.3 Consent requiring special resolution 196
1.5 Written ballot required for special resolution 196
1.6 How special resolution is carried 196
Dictionary 197
1 About the endnotes 205
2 Abbreviation key 205
3 Legislation history 206
4 Amendment history 210
5 Earlier republications 227
6 Expired transitional or validating provisions 230
An Act to regulate retirement villages, and for other purposes
1
Name of Act
1 Name of Act
This Act is the Retirement Villages Act 2012.
3
Dictionary
3 Dictionary
The dictionary at the end of this Act is part of this Act.
Note 1 The dictionary at the end of this Act defines certain terms used in this
Act, and includes references (signpost definitions) to other terms defined
elsewhere.
For example, the signpost definition ‘development approval—see the
Planning Act 2023, dictionary.’ means that the term ‘development
approval’ is defined in that dictionary and the definition applies to this
Act.
Note 2 A definition in the dictionary (including a signpost definition) applies to
the entire Act unless the definition, or another provision of the Act,
provides otherwise or the contrary intention otherwise appears (see
Legislation Act, s 155 and s 156 (1)).
4
Notes
4 Notes
A note included in this Act is explanatory and is not part of this Act.
Note See the Legislation Act, s 127 (1), (4) and (5) for the legal status of notes.
Preliminary Part 1
5
Offences against Act—application of Criminal Code etc
5 Offences against Act—application of Criminal Code etc
Other legislation applies in relation to offences against this Act.
Note 1 Criminal Code
The Criminal Code, ch 2 applies to all offences against this Act (see
Code, pt 2.1).
The chapter sets out the general principles of criminal responsibility
(including burdens of proof and general defences), and defines terms used
for offences to which the Code applies (eg conduct, intention,
recklessness and strict liability).
Note 2 Penalty units
The Legislation Act, s 133 deals with the meaning of offence penalties
that are expressed in penalty units.
6
Objects of Act
6 Objects of Act
The objects of this Act are to—
(a) set out particular rights and obligations of residents and
operators of retirement villages; and
(b) facilitate the disclosure of information to prospective residents
of retirement villages; and
(c) require contracts between residents and operators of retirement
villages to contain full details of the rights and obligations of the
parties; and
(d) facilitate participation by residents, who want to be involved, in
the management of retirement villages; and
(e) establish appropriate mechanisms for resolving certain disputes
between residents and operators of retirement villages; and
(f) encourage the retirement village industry to adopt best practice
management standards.
7
Meaning of operator
7 Meaning of operator
operator, of a retirement village—
(a) means the person who, alone or with someone else, manages or
controls the retirement village; and
(b) includes—
(i) a person for the time being managing or controlling the
(ii) a person (other than a resident or other person mentioned
in section 8 (Meaning of residence right) who owns land
in the village; and
(iii) a person mentioned in section 15A (1) (d) (Application to
residents and operators of former retirement villages); and
(iv) any other person prescribed by regulation; but
Note Power to make a regulation in relation to a matter includes power
to make provision in relation to a class of matter (see Legislation
Act, s 48 (2)).
(c) does not include—
(i) the body corporate of a community title scheme or the
owners corporation for a units plan; or
(ii) the managing agent of a community title scheme or units
(iii) any person excluded from this definition by regulation.
(2) If there is more than 1 operator for a retirement village, it is sufficient
compliance with a requirement of this Act if—
(a) any of the operators exercises the functions of an operator under
this Act; and
(b) any notice or other document required to be given to the operator
under this Act is given to any of the operators.
Note 1 A reference to an Act includes a reference to the statutory instruments
Note 2 For how documents may be given, see the Legislation Act, pt 19.5.
body corporate, of a community title scheme—see the Community
Title Act 2001, dictionary.
8
Meaning of residence right
8 Meaning of residence right
residence right, in relation to residential premises in a retirement
village, means—
(a) a person’s right to occupy the residential premises under a
contract—
(i) under which the person bought the residential premises; or
(ii) under which the person bought shares entitling the person
to occupy the residential premises; or
(iii) in the form of a lease, licence, arrangement or agreement
of any kind (other than a residential tenancy agreement)—
(A) entered into under division 10.5 (Sale or letting of
premises by certain residents); or
(B) that contains a term to the effect that this Act does not
apply to the residential premises; or
(iv) under which the person lends money to the operator of the
village in consideration for, or in expectation of, the right
to occupy the residential premises; or
(v) prescribed by regulation; or
(b) any other right prescribed by regulation.
Note The contract that gives rise to a residence right is a residence contract,
and a residence contract is a village contract (see dict).
(2) For the definition of residence right, it does not matter if the person
who acquired the right (the acquirer)—
(a) is a corporation, if the residential premises is intended for use by
an individual; or
(b) acquires it for the purposes of allowing another person to live in
the residential premises instead of the acquirer.
(3) If subsection (2) applies, a retired person who lives in the residential
premises with the acquirer’s consent is taken to have the residence
right.
9
Meaning of sale, sale price and contract for the sale of
9 Meaning of sale, sale price and contract for the sale of
residential premises
In this Act, a reference to the sale, the sale price, or a contract for the
sale, of residential premises in a retirement village that was or is to
be occupied under a company title scheme is a reference to the sale,
the sale price, or a contract for the sale, of the residence right in
relation to the residential premises.
10
Meaning of retirement village
10 Meaning of retirement village
retirement village—
(a) means a complex containing residential premises that are—
(i) predominantly or exclusively occupied, or intended to be
predominantly or exclusively occupied, by retired people
who have entered into village contracts with an operator of
the complex; or
(ii) prescribed by regulation; but
(b) does not include any of the following:
(i) a residential care home provided by a registered provider;
(ii) a mobile home park;
(iii) residential premises that are the subject of a residential
tenancy agreement to which the housing commissioner is a
party;
(iv) a boarding house;
(v) accommodation provided in a complex for employees of
the complex who are not residents of the retirement village;
(vi) residential premises that are the subject of a residential
tenancy agreement—
(A) to which the operator of a retirement village is a party;
and
(B) that contains a term to the effect that this Act does not
apply to the premises;
(vii) any other place prescribed by regulation.
mobile home park—see the Residential Tenancies Act 1997,
dictionary.
11
Meaning of ingoing contribution
11 Meaning of ingoing contribution
In this Act:
ingoing contribution—
(a) means—
(i) an amount payable by or on behalf of a person to the
operator of a retirement village under a residence contract;
or
(ii) any other amount paid by or on behalf of a person to the
operator of a retirement village in consideration for, or in
expectation of, the person or someone else becoming a
resident of the village; but
(b) does not include the following:
(i) a waiting list fee;
(ii) a recurrent charge;
(iii) if the resident is the registered proprietor of a lease, the
owner of a unit in a units plan or the owner of a lot in a
community title scheme where the residential premises are
located—the purchase price of the land or lot;
(iv) if the person owns shares in a company title scheme that
give rise to a residence right in relation to the residential
premises—the purchase price of the shares;
(v) a payment prescribed by regulation.
12
Meaning of registered interest holder and registered long-
12 Meaning of registered interest holder and registered long-
term sublessee
registered interest holder—a person is a registered interest holder in
relation to residential premises in a retirement village if—
(a) the person—
(i) is 1 of the following:
(A) the registered proprietor of land in the retirement
(B) the owner of a unit in a units plan in the retirement
(C) the owner of a lot in a community title scheme in the
(ii) has a residence right in relation to residential premises in
the retirement village; or
(b) the person owns shares in a company title scheme that give rise
to a residence right in relation to residential premises in the
retirement village; or
(c) the person is a registered long-term sublessee.
registered long-term sublessee, of residential premises in a
retirement village, means a person whose residence contract is in the
form of a registered long-term sublease if—
(a) the sublease includes a provision that entitles the person to at
least 50% of any capital gain; or
(b) the person is otherwise entitled under a contract, an agreement
or other arrangement to at least 50% of any capital gain.
registered long-term sublease means a sublease (however described)
registered under the Land Titles Act 1925 that—
(a) has a term of at least 50 years (including any option to renew);
or
(b) is for the life of the lessee.
13
Meaning of capital gain
13 Meaning of capital gain
capital gain, in relation to a resident’s entitlement under a residence
contract or the sharing of a capital gain under a village contract
between the operator and a resident—
(a) means any increase between the amount the resident paid for the
residence right for the residential premises and the amount that
the next resident pays for a residence right for the same
premises; but
(b) does not include any costs associated with the subsequent sale
or lease of the premises.
(2) The amount of fees and charges payable under a village contract are
not to be included in working out the amount of a capital gain.
14
Meaning of permanently vacated residential premises
14 Meaning of permanently vacated residential premises
(1) For this Act, a person has permanently vacated residential premises
in a retirement village when—
(a) vacant possession of the person’s residential premises is
delivered up to the operator of the village by or on behalf of the
person following the person’s vacation of the premises; or
(b) the executor or administrator of the person’s estate delivers up
vacant possession of the person’s residential premises to the
operator of the village following the person’s death; or
(c) the ACAT makes an order under section 198 (Abandoned
premises) declaring that the person’s residential premises were
abandoned by the person; or
(d) if the person is a registered interest holder in relation to
residential premises or is taken to be a resident of the premises
under section 8 (3) (Meaning of residence right)—the person
dies or moves out of the premises.
(2) For subsection (1) (c), the person is taken to have permanently
vacated the residential premises on the day stated in the order.
15
Consent of residents
15 Consent of residents
(1) The residents of a retirement village may consent to a proposed
measure or action relating to the village under this Act in the way set
out in schedule 1 (Consent of residents).
(2) The residents or operator of the retirement village may apply to the
ACAT for an order about the validity of the consent if the residents
or operator considers that—
(a) the residents consent in relation to a particular matter has been
obtained otherwise than as set out in schedule 1; or
(b) the residents votes were inaccurately counted.
(3) On application, the ACAT may make an order—
(a) declaring that the consent was validly obtained; or
(b) setting aside the purported consent and directing that the
residents vote again on the proposed measure or action.
15A
Application to residents and operators of former
15A Application to residents and operators of former
(1) This Act applies to the following people in relation to the occupation
of a former retirement village even though the former retirement
village is no longer a retirement village:
(a) a retired person who continues to occupy residential premises in
a former retirement village that was a retirement village when
the retired person took up residence in the premises;
(b) a retired person who has a right to occupy residential premises
in a former retirement village that was a retirement village when
the right was obtained;
(c) a former occupant of a former retirement village who continues
to have rights or liabilities under the contract, agreement or
arrangement under which the occupant occupied (or had the
right to occupy) the residential premises in the former retirement
village when it was a retirement village;
(d) the person who is the other party to the contract, agreement or
arrangement under which the retired person occupies or
occupied (or has or had the right to occupy) the residential
premises in the former retirement village.
Note Operator includes a person mentioned in s (1) (d) (see s 7).
Resident includes a person mentioned in s (1) (a), (b) or (c) (see dict).
(2) However, this Act does not apply in relation to a place mentioned in
section 10 (1) (Meaning of retirement village), definition of
retirement village, paragraph (b).
former retirement village means a complex that was previously, but
is no longer, a retirement village.
Part 3
Representations and information
Part 3 Representations and information
about retirement villages
16
Advertising or promoting village before development
16 Advertising or promoting village before development
approval given
(1) A person commits an offence if—
(a) the person—
(i) advertises, or otherwise promotes, a retirement village; or
(ii) advertises the sale of residential premises, or the right to
occupy residential premises, in a retirement village; and
(b) the development of the retirement village requires development
approval; and
(c) development approval has not been received for the
development of the retirement village; and
(d) the advertisement or other promotion mentioned in
paragraph (a) (i) or (ii) does not disclose to a prospective
resident that development approval has not been received for
development of the retirement village.
Note See the Planning Act 2023, ch 7 for when development approval is
required for certain developments.
(2) A person commits an offence if—
(a) the person enters into a village contract for a retirement village
with a prospective resident; and
(b) the development of the retirement village requires development
approval; and
(c) development approval has not been received for the
development of the retirement village.
17
Advertising without approval for facilities
17 Advertising without approval for facilities
(a) advertises or otherwise represents that a residential care home
is, or will be, associated with the village; and
(b) has not received all the authorisations required by law for the
residential care home.
operator, of a retirement village, includes a person intending to carry
out development of a retirement village.
18
Exceptions to prohibitions on advertising
18 Exceptions to prohibitions on advertising
Section 16 and section 17 do not apply to a person if the person—
(a) carries out market surveys in relation to a proposed retirement
village before the person receives development approval for the
development; or
(b) carries out market surveys in relation to a proposed residential
care home in connection with a retirement village before the
person receives all the authorisations required by law for the
facility; or
(c) gives public notice of, or otherwise advertises, a development
application relating to a proposed retirement village or a
proposed residential care home in accordance with the Planning
Act 2023.
mentioned in this section (see Criminal Code, s 58).
19
Representation that complex is retirement village
19 Representation that complex is retirement village
(1) A person commits an offence if—
(a) the person manages or controls a complex containing residential
(b) the person represents that the complex is a retirement village;
and
(c) the complex is not a retirement village.
20
Giving information inconsistent with disclosure
20 Giving information inconsistent with disclosure
statement
(a) the operator gives information about the village to a prospective
resident of the village; and
(b) the information is inconsistent with information in the disclosure
statement for the village given to the prospective resident.
Note See s 24 for what must be included in a disclosure statement for a
21
Information about services and facilities
21 Information about services and facilities
(a) the operator tells a prospective resident of the village that—
(i) a service is provided for residents at the village; or
(ii) a facility is available at the village; or
(iii) a service or facility is associated with the village; and
(b) the service or facility is not provided or available at, or
associated with, the village.
(2) The operator of a retirement village commits an offence if—
(a) the operator tells a prospective resident of the village that a
service or facility is to be provided to, or made available by the
operator at, the village or to the residents in the future; and
(b) the operator enters into a village contract with the prospective
resident; and
(c) the village contract does not state—
(i) that the service or facility is to be provided to, or made
available by the operator at, the village or to the residents;
or
(ii) the day by when the service or facility is to be provided or
made available.
(4) A resident of a retirement village may apply to the ACAT for an order
directing the operator of the village to pay compensation to the
resident if a service or facility mentioned in the resident’s village
contract is not provided or made available—
(a) by the date stated in the contract; or
(b) if the contract does not state a date—within a reasonable time.
22
Making certain representations—promotional material
22 Making certain representations—promotional material
(a) the operator publishes or distributes written promotional
material about the village; and
(b) the material includes any of the following representations in
relation to the village:
(i) that a person is likely to obtain a capital gain when the
person vacates the village;
(ii) an estimation of possible amendments of future recurrent
charges;
(iii) an estimation of the future size of the village;
(iv) a representation in relation to future ownership of the
Note Any advertising, and promotional and sales material, relating to a
retirement village must also comply with the Fair Trading (Australian
Consumer Law) Act 1992 and the Competition and Consumer Act 2010
(Cwlth).
(3) Subsection (1) (b) (ii) does not apply if the village contract provides
for recurrent charges to be amended in accordance with a fixed
formula.
(4) Subsection (1) (b) (iii) does not apply if the representation is made in
relation to development where construction is underway and a
completion date for the development is known.
(5) Subsection (1) (b) (iv) does not apply if, when the representation is
made, a contract to transfer ownership of the retirement village has
been entered into.
mentioned in s (3), (4) and (5) (see Criminal Code, s 58).
(6) Promotional material to which subsection (5) applies may include
details about the contract for the transfer of ownership of the
22A
Making certain representations—aged care services
22A Making certain representations—aged care services
operator makes an express or implied representation (whether oral or
in writing) that—
(a) the village is a registered provider of a residential care home; or
(b) residents of the village have priority access to a residential care
home provided by a registered provider.
Note 1 Any advertising, promotional or sales material relating to a retirement
village must also comply with the Fair Trading (Australian Consumer
Law) Act 1992 and the Competition and Consumer Act 2010 (Cwlth).
Note 2 Section 10 (1), def retirement village, par (b) (i) excludes residential care
homes from that definition.
(3) To remove any doubt, an operator does not make a representation for
subsection (1) merely by giving an explanation or statement of—
(a) how the services of the retirement village differ from residential
care services given to a prospective resident under section 23
(General inquiry document) or section 24 (Disclosure
statement); or
(b) the fact that a residential care home is associated with the
23
General inquiry document
23 General inquiry document
(1) The operator of a retirement village must give a general inquiry
document to a prospective resident within 14 days after the day the
prospective resident—
(a) requests a copy of the document; or
(b) expresses an interest in the village.
Note For how documents may be given, see the Legislation Act, pt 19.5.
(2) The general inquiry document must comply with any requirement
Note Power to make a statutory instrument (including a regulation) includes
power to make different provision for different categories (see
Legislation Act, s 48).
24
Disclosure statement
24 Disclosure statement
(1) The operator of a retirement village must give a disclosure statement
to a prospective resident within 14 days after the day the prospective
resident—
(a) requests a copy of the document; or
(b) expresses an interest in particular premises in the village.
(3) The disclosure statement must comply with any requirement
Note 1 Power to make a statutory instrument (including a regulation) includes
power to make different provision in relation to different matters or
different classes of matters (see Legislation Act, s 48).
Note 2 For how documents may be given, see the Legislation Act, pt 19.5.
25
Failure to attach disclosure statement to village contract
25 Failure to attach disclosure statement to village contract
(a) enters into a village contract with a prospective resident; and
(b) fails to attach a copy of the disclosure statement to the village
disclosure statement includes a disclosure statement amended in
writing and signed by the prospective resident.
26
Entering into village contract less than 14 days after
26 Entering into village contract less than 14 days after
giving disclosure statement
(a) gives a prospective resident of the retirement village a disclosure
statement in relation to the village; and
(b) enters into a village contract with the prospective resident less
than 14 days after giving the prospective resident the disclosure
statement.
27
Orders for provision of general inquiry document or
27 Orders for provision of general inquiry document or
disclosure statement
(1) This section applies if the operator of a retirement village fails to give
a copy of the general inquiry document or disclosure statement
relating to the village to a prospective resident in accordance with this
part.
(2) The prospective resident may apply to the ACAT for an order
directing the operator to give the prospective resident a copy of the
general inquiry document or disclosure statement.
28
Information to be given to prospective residents
28 Information to be given to prospective residents
(1) The director-general may approve the form and content of
information that the operator of a retirement village must give to a
prospective resident of the retirement village.
(2) An approval is a notifiable instrument.
(3) Without limiting subsection (1), the information approved by the
director-general may relate to any of the following:
(a) the retirement industry generally;
(b) the rights and responsibilities of residents of retirement villages;
(c) living in a unit of a units plan.
(4) The operator must give the approved information in the approved
form to a prospective resident when, or before, the general inquiry
document is given to the prospective resident.
(5) The operator commits an offence if the operator does not comply with
subsection (4).
(6) An offence against subsection (5) is a strict liability offence.
29
Copies of certain documents to be made available
29 Copies of certain documents to be made available
(1) The operator of a retirement village must make available at the village
or a place of business in the ACT, for inspection at all reasonable
times by a prospective resident, copies of the following:
(a) a site plan for the village;
(b) plans showing the location, floor plan and significant
dimensions of residential premises available in the village;
(c) the proposed annual budgets (if any) and the approved annual
budgets for—
(i) each of the last 3 financial years of the village; and
(ii) the current financial year; and
(iii) the next financial year (if budgets in relation to that year
are available);
(d) the accounts of the village, audited if required under division 7.5
(Annual accounts), for the last 3 financial years (excluding,
during the first 4 months of a financial year, the immediately
preceding financial year if the accounts for that year are not
available);
(e) examples of all village contracts that an incoming resident may
be required to enter into;
(f) the trust deed for any trust fund into which money paid by the
residents is deposited;
(g) the village rules;
(h) the terms of the development approval, if any, for the village,
if—
(i) construction of the village is not complete; or
(ii) it is a condition of the development approval that a
particular service or facility be provided for the life of the
(i) if there is a capital works fund established for the village—
statements of the balance in the fund as at the end of—
(i) each of the last 3 financial years of the village; and
(ii) the most recent quarter;
(j) if the operator is required to provide the residents with quarterly
accounts—the most recent quarterly accounts of the income and
expenditure of the village;
(k) any other documents relating to the village, and to retirement
villages generally, prescribed by regulation.
Note Section 258 prohibits the operator of a retirement village from charging
for making a document mentioned in s (1) available.
(3) If the village has been in operation for 3 years or less, the documents
mentioned in subsection (1) (c), (d) and (i) must relate to each
financial year that the village has been in operation.
30
Certain documents to be given on request
30 Certain documents to be given on request
(1) If a prospective resident of a retirement village asks the operator of
the village to post or otherwise give the person a copy of a document
mentioned in section 29 (1) (a) to (j), the operator must post or
otherwise give a copy of the document to the prospective resident
within 7 days after the prospective resident asks for it.
(2) The operator of the village commits an offence if the operator does
not comply with subsection (1).
(3) An offence against subsection (2) is a strict liability offence.
31
Orders for documents
31 Orders for documents
(1) This section applies if the operator of a retirement village does not—
(a) have the documents mentioned in section 29 (Copies of certain
documents to be made available) available for inspection by a
prospective resident of the village; or
(b) comply with a request under section 30 (Certain documents to
be given on request).
(2) A prospective resident may apply to the ACAT for an order directing
the operator to comply with section 29 or a request under section 30.
32
Definitions—pt 4
32 Definitions—pt 4
holding deposit means money paid by or on behalf of a prospective
resident to the operator of a retirement village in consideration for not
offering particular residential premises in the village to any other
person pending the prospective resident’s entering into a residence
contract with the operator.
trustee means—
(a) the public trustee and guardian; or
(b) the lawyer for an operator of a retirement village; or
(c) a real estate agent; or
(d) a licensed trustee company under the Corporations Act,
section 601RAA; or
(e) someone else prescribed by regulation.
waiting list fee, for a retirement village, means any amount paid to
the operator of the village, other than—
(a) an ingoing contribution; or
(b) a holding deposit; or
(c) a payment under a village contract in relation to the village.
33
Requesting or accepting waiting list fees
33 Requesting or accepting waiting list fees
operator requests or accepts payment of a waiting list fee from a
person.
(3) Subsection (1) does not apply if—
(a) the fee is not more than $200, or another amount prescribed by
regulation; and
(b) the operator has a written policy setting out the way the waiting
list operates; and
(c) the operator gives the person who pays the waiting list fee, when
payment is made—
(i) a copy of the policy; and
(ii) a receipt for the payment.
Note The operator has an evidential burden in relation to the matters mentioned
in s (3) (see Criminal Code, s 58).
34
Repayment of waiting list fees—prospective resident
34 Repayment of waiting list fees—prospective resident
enters village contract
(a) a waiting list fee for a retirement village was paid by or on behalf
of a prospective resident; and
(b) the prospective resident later enters into a village contract in
relation to the village.
(2) The operator of a retirement village must refund the waiting list fee
to the person who paid the fee.
(3) Subsection (2) does not apply if—
(a) an ingoing contribution is payable in relation to the retirement
(b) the operator deducts the waiting list fee from the ingoing
contribution.
35
Repayment of waiting list fees—prospective resident
35 Repayment of waiting list fees—prospective resident
does not enter village contract
(a) a waiting list fee for a retirement village was paid by or on behalf
of a prospective resident; and
(b) the prospective resident does not later enter into a village
contract in relation to the retirement village.
(2) The operator of the retirement village must refund the waiting list fee
to the person who paid the fee within 14 days after the day the
operator receives a written request from the person.
36
Orders for repayment of waiting list fees
36 Orders for repayment of waiting list fees
(1) A person who paid a waiting list fee for a retirement village may
apply to the ACAT for an order directing the operator of the
retirement village to repay the fee.
(2) The ACAT may also, if the ACAT considers it appropriate, make an
order for the payment of interest at a rate determined by the ACAT.
37
Requesting or accepting holding deposit
37 Requesting or accepting holding deposit
operator requests or accepts payment of a holding deposit in relation
to residential premises in the village occupied by a resident.
(3) Subsection (1) does not apply if the resident has given the operator
written notice of the resident’s intention to vacate the residential
38
Failure to keep deposits in trust
38 Failure to keep deposits in trust
(a) the operator receives an amount as—
(i) a holding deposit; or
(ii) a deposit under a village contract; and
(b) fails to give the amount to a trustee to hold on trust.
(3) A receipt issued by a trustee in relation to an amount received under
subsection (1) is evidence that a person has not contravened
(4) Subsection (1) does not apply in relation to an amount held by an
operator of a retirement village if the operator is a body constituted
or established—
(a) by an Act; or
(b) for a benevolent, philanthropic or patriotic purpose.
Note A defendant has an evidential burden in relation to the matters mentioned
in s (4) and s (5) (see Criminal Code, s 58).
(5) Subsection (1) (a) (ii) does not apply in relation to a contract for the
sale of residential premises if the contract provides for the way in
which the deposit is to be held.
Note A defendant has an evidential burden in relation to the matters mentioned
in s (4) and s (5) (see Criminal Code, s 58).
39
Repaying etc holding deposits and ingoing contributions
39 Repaying etc holding deposits and ingoing contributions
(1) An amount paid by a prospective resident to the operator of a
retirement village as a holding deposit or ingoing contribution must
be held in trust until—
(a) the prospective resident enters into a residence contract with the
operator (whether in relation to the residential premises
concerned or to other residential premises in the same village or
another village); or
(b) the operator receives written notice that the prospective
resident—
(i) does not intend to enter into a residence contract for a
reason other than that mentioned in subparagraph (ii); or
(ii) does not intend to enter into a residence contract because
the prospective resident has been approved for access for,
and intends to enter into, a residential care home; or
(iii) has died.
(2) If the prospective resident enters into a residence contract with the
operator, an amount paid under this section as a holding deposit may,
if both parties agree, form part of the deposit under the contract.
(3) If the operator receives written notice under subsection (1) (b), the
operator must refund the amount to the person lawfully entitled to it
not later than 14 days after the operator receives the notice.
(4) However, for notice under subsection (1) (b) (i), the operator may
keep an amount mentioned in subsection (5) if—
(a) the prospective resident and the operator have entered into a
(b) the prospective resident gives the notice—
(i) after the end of the cooling-off period for the contract; and
(ii) before final payment is made under the contract; and
(iii) before the settling-in period for the contract begins.
Note Cooling-off period—see s 53 (5).
(5) For subsection (4), the amount is the reasonable costs incurred by the
operator in relation to the residential premises for the period—
(a) starting on the day after the village contract in relation to the
premises is entered into; and
(b) ending on the earliest of the following:
(i) 14 days after the day the prospective resident gives notice
under subsection (1) (b) (i);
(ii) the day the operator of the retirement village enters into a
village contract with an incoming resident in relation to the
(iii) the day the operator enters into a residential tenancy
agreement with an incoming tenant in relation to the
(iv) the day a person takes up residence in the premises with
the operator’s consent.
Examples—reasonable costs
legal expenses, commissions, advertising and marketing costs, recurrent charges
(6) However, the amount mentioned in subsection (5) must not exceed—
(a) an amount prescribed by regulation; or
(b) if no amount is prescribed—$10 000.
(7) The operator may ask for evidence—
(a) for notice given under subsection (1) (b) (ii)—of the prospective
resident’s intention; or
1 statement from a hospital that the person is in hospital waiting for
approval to access a residential care home
2 evidence that the person has been approved for access for, and intends
to enter into, a residential care home
(b) for notice given under subsection (1) (b) (iii)—that the
prospective resident has died.
(8) An amount paid to the operator as a deposit under a village contract
is to be held in trust until final payment is made under the contract.
(9) Subsection (8) does not apply in relation to a contract for the sale of
residential premises if the contract provides for the way in which the
deposit is to be held.
(10) In this section:
settling-in period, for a village contract, means the period worked out
for the contract under section 71 (Meaning of end of the settling-in
period—div 5.2).
40
Orders for repayment of holding deposits and ingoing
40 Orders for repayment of holding deposits and ingoing
contributions
If the operator of a retirement village fails to refund an amount held
on trust under section 39, the person lawfully entitled to it may apply
to the ACAT for an order directing the operator to repay the amount.
41
Resident to enter village contract
41 Resident to enter village contract
(1) The operator of a retirement village must not allow a prospective
resident of the village to occupy residential premises in the village
before the prospective resident enters into at least 1 of the following
contracts (a relevant contract) with the operator in writing:
(a) a residence contract;
(b) a service contract.
Note A residence contract, a service contract and any other village contract
may be contained in a single document.
(3) However, a prospective resident may occupy residential premises in
the village without entering into a relevant contract if—
(a) the prospective resident occupies the premises with a person
who has entered into a relevant contract with the operator; or
(b) the prospective resident and the operator enter into a residential
tenancy agreement to which this Act does not apply in relation
to the premises.
(4) If the operator contravenes subsection (1), then (despite part 10
(Matters relating to vacation of premises))—
(a) the former occupant (if any) of the residential premises has no
liability to pay any recurrent charges or departure fees relating
to the premises in relation to any period after the day when the
prospective resident occupies the premises; and
(b) the operator must, not later than 1 month after that day, pay—
(i) any refund of the former occupant’s ingoing contribution;
and
(ii) any other amount that is required, under a village contract,
to be paid to the former occupant.
(5) If a refund, in whole or in part, is not paid to a former occupant within
the period required by subsection (4) (b)—
directing the operator to pay the refund; and
(b) interest is payable, at the prescribed rate, on and from the date
that payment of the refund becomes overdue.
42
Retirement village land to be registered under Land Titles
42 Retirement village land to be registered under Land Titles
Act
(1) The operator of a retirement village must lodge a notice with the
registrar-general for registration under the Land Titles Act 1925 that
the land consisting of the retirement village (or land that is part of the
retirement village) is used as a retirement village.
Note The registrar-general must register an instrument lodged in registrable
form (see Land Titles Act 1925, s 48 (1)).
(3) A notice under subsection (1) must be lodged with the
registrar-general before entering into a residence contract in relation
to residential premises on the land.
(4) The operator must lodge with the registrar-general a new notice under
this section if any of the information in a notice registered under the
Land Titles Act 1925 in relation to the retirement village is no longer
accurate.
(5) Nothing in this section requires the operator to lodge a notice with the
registrar-general before entering into a residence contract in relation
to residential premises on land that is already the subject of a notice
under this section.
43
Operator must give copy of retirement village notice
43 Operator must give copy of retirement village notice
The operator of a retirement village must give a copy of a notice under
section 42 to—
(a) each person who that has a registered interest in the land to
which the notice relates; and
(b) the residents committee (if any) of the retirement village.
44
Application to remove retirement village notice from land
44 Application to remove retirement village notice from land
titles register
(1) A person may apply in writing to the registrar-general for a notice
under section 42 to be removed from the land titles register.
(2) The registrar-general must remove the notice from the register if
satisfied that—
(a) there are no residential premises on the land to which the notice
relates that are the subject of a village contract; and
(b) there are no amounts outstanding that are payable under a village
contract relating to residential premises on the land to which the
notice relates.
45
Inconsistency between village contract and disclosure
45 Inconsistency between village contract and disclosure
statement
(1) This section applies if a provision in a village contract for residential
premises in a retirement village is inconsistent, to the detriment of a
resident of the village, with the information contained in the
disclosure statement for the residential premises given to the resident.
(2) The village contract must be construed (as far as practicable) as if it
included the information in the disclosure statement instead of the
inconsistent term.
(3) Subsection (2) does not apply if the inconsistent term is a term of a
standard form contract.
Note Standard form contract—see s 67.
(4) If there is a dispute between a resident of a retirement village and the
operator of the village about whether there is an inconsistency
mentioned in subsection (1), the resident may apply to the ACAT for
an order deciding the dispute.
(5) The order must state the way in which the contract must be construed.
46
Village contracts must be in writing
46 Village contracts must be in writing
Despite any other territory law, a village contract is not enforceable
by the operator of a retirement village against a resident of the village
unless the contract is in writing.
47
Operator must allow time for reading of village contract
47 Operator must allow time for reading of village contract
operator enters into a village contract with a person earlier than
14 days after the day the person (or another person acting on behalf
of that person) has been given a copy of the contract.
48
No restriction on right to obtain independent advice
48 No restriction on right to obtain independent advice
(1) The operator of a retirement village must not restrict a person from
obtaining independent advice before entering into a village contract
with the operator.
(2) The operator of a retirement village must not require a resident or a
prospective resident of the village to use the services of a lawyer or
other adviser nominated by the operator.
(4) If a resident or a prospective resident is required to use the services
of a lawyer or other adviser in contravention of this section, the
operator of the village is liable to pay to the resident or prospective
resident the fees paid by the resident or prospective resident to the
lawyer or other adviser for those services.
(5) If the operator does not, on request, pay the amount due to a resident
or prospective resident under subsection (4), the resident or
prospective resident may apply to the ACAT for an order directing
the operator to pay the amount.
49
Amendment or replacement of village contract
49 Amendment or replacement of village contract
(1) This section applies to the following actions:
(a) a purported amendment of a village contract;
(b) a purported ending of a village contract and entry into a new
village contract with the same party in relation to the same
residential premises.
(2) An action mentioned in subsection (1) has no effect (and the contract
continues as in force before the purported amendment or ending)
unless the resident who is a party to the contract obtains a written
certificate under this section.
(3) The certificate must—
(a) be signed by a lawyer chosen by the resident; and
(b) include a statement to the effect that—
(i) the lawyer explained to the resident the effect of the
proposed amendment of the contract (or the proposed new
contract); and
(ii) the resident appeared to understand the explanation and to
consent to the amendment (or to the new contract).
(4) Section 47 (Operator must allow time for reading of village contract)
and section 48 (No restriction on right to obtain independent advice)
apply in relation to an amendment of a contract as if the amendment
were a new contract.
(5) This section does not apply if the resident requested the amendment
or new contract.
50
Failure to obtain certificate for amendment or
50 Failure to obtain certificate for amendment or
replacement of village contract
(a) the operator purports—
(i) to amend a village contract; or
(ii) to end a village contract and enter into a new village
contract with the same party in relation to the same
residential premises; and
(b) the resident who is a party to the contract has not obtained a
certificate mentioned in section 49 (Amendment or replacement
of village contract).
(3) Subsection (1) does not apply if the resident requested the amendment
or new contract.
51
Costs of obtaining certificate
51 Costs of obtaining certificate
(1) The reasonable costs of obtaining a certificate mentioned in
section 49 (Amendment or replacement of village contract) are
payable by the operator of a retirement village as if the operator, and
not the resident, were the client of the lawyer engaged by the resident
for the certificate.
(2) The operator is not required to pay the costs mentioned in subsection
(1) until the resident has given the operator a copy of the account held
by the resident for the costs.
(3) If the operator does not pay all the costs within 28 days after the day
the operator is given a copy of the relevant account, the resident may
apply to the ACAT for an order directing the operator to pay the
amount.
(4) On application, the ACAT—
(a) may make the order sought; or
(b) may order the operator and the resident to pay the costs in the
proportion the ACAT considers just in the circumstances.
52
Costs of preparation of village contracts
52 Costs of preparation of village contracts
(1) Legal and other expenses incurred by the operator of a retirement
village in relation to the preparation of a village contract for
residential premises in a retirement village are payable by the
operator and the resident in equal shares (except as provided by
section 51).
(2) The resident is not required to pay the expenses mentioned in
subsection (1) until the operator has given the resident a copy of the
account held by the operator for the expenses.
(3) A regulation may prescribe a maximum amount payable by a resident
under this section.
(4) If a regulation prescribes a maximum amount, any difference between
the resident’s share of the amount incurred by the operator and the
maximum amount prescribed is payable by the operator.
(5) If a residence contract is in the form of a sublease, the resident must
pay—
(a) any duty payable on the sublease; and
(b) any registration fee payable under the Land Titles Act 1925 for
the sublease.
(6) This section does not apply in relation to a contract for the sale of
residential premises that are subject to a community title scheme,
company title scheme or units plan.
preparation, of a village contract, includes the preparation of any
agreement or contract that comprises the village contract.
loan agreement, other residence contract, services contract
53
Cooling-off period
53 Cooling-off period
(1) A resident of a retirement village may, within the cooling-off period
for the resident’s village contract, rescind the contract by written
notice given to—
(a) the other party to the contract; and
(b) if the operator is not the other party to the contract—the
(2) A contract must not be completed until after the cooling-off period
has expired.
(3) The cooling-off period under a residence contract is waived if the
resident starts living in the residential premises to which the contract
relates.
(4) This provision has effect despite any other territory law.
cooling-off period, for a village contract, means the period—
(a) starting immediately after midnight on—
(i) the day the resident receives a copy of the contract signed
by the operator; or
(ii) for a contract that is, or includes, a residence contract in
relation to which the operator is not the other party—the
day the residence contract is entered into; and
(b) ending at midnight on the 7th business day after that day.
Note For when an operator must give a resident a copy of a signed village
contract, see s 60 (1) and (2).
54
Rescission of village contract on grounds relating to
54 Rescission of village contract on grounds relating to
disclosure statement
(a) a disclosure statement for residential premises in a retirement
village is not given in accordance with this Act; or
(b) the information in the statement is false or misleading in a
material particular.
(2) The person to whom (or on whose behalf) the disclosure statement
was given or should have been given may, within 3 months after the
day the residential premises in the retirement village are occupied,
apply to the ACAT for an order allowing the person to rescind any
village contract to which the person and the operator of the village are
parties.
(3) The ACAT must not make an order under subsection (2) if it is
satisfied that—
(a) the disclosure statement was provided in accordance with this
Act; or
(b) the information in the disclosure statement is not false or
misleading in a material particular; or
(c) the operator acted reasonably and honestly and should be
excused for the failure to provide accurate information, or to
provide the disclosure statement in accordance with this Act; or
(d) the person to whom (or on whose behalf) the disclosure
statement was given or should have been given is in
substantially as good a position as the person would have been
had the failure not occurred.
(4) If the ACAT makes an order under subsection (2)—
(a) it may also order the operator to pay compensation to the
applicant for the order; and
(b) the applicant may, by written notice to the operator, rescind the
55
Effect of rescission notice
55 Effect of rescission notice
(1) A notice rescinding a village contract under this part (a rescission
notice) takes effect on service of the notice.
Note For how documents may be served, see the Legislation Act, pt 19.5.
(2) A village contract that is rescinded under this part is void.
(3) However, subsection (2) does not affect the rights and obligations set
out in section 56, section 57 or section 58.
56
Consequences of resident’s rescission of service
56 Consequences of resident’s rescission of service
(a) a resident of a retirement village serves a rescission notice in
relation to the resident’s service contract; and
(b) the resident does not serve a rescission notice in relation to the
residence contract.
Note For how documents may be served, see the Legislation Act, pt 19.5.
(2) The resident and the operator of the village must attempt to
renegotiate the service contract.
(3) If the operator and the resident cannot agree on the terms of the new
service contract, the operator or the resident may apply to the ACAT
for an order setting out the terms of the new contract.
(4) On application, the ACAT may—
(a) make the order sought; and
(b) if the ACAT considers it appropriate, order the operator and the
resident to enter into a new contract on the terms set out in the
order.
(5) Section 47 (Operator must allow time for reading of village contract)
does not apply to a new service contract arising out of an order of the
ACAT under this section.
57
Consequences of resident’s rescission of residence
57 Consequences of resident’s rescission of residence
(1) A rescission notice given by a resident of a retirement village in
relation to a residence contract is taken also to apply to the service
contract and any other village contract entered into by the resident.
(2) Each of the contracts mentioned in subsection (1) are void.
(3) As soon as practicable (but not later than 1 month) after a rescission
notice that applies to a residence contract takes effect—
(a) the operator of the village must repay all money paid by or on
behalf of the resident under the residence contract; and
(b) if the residence contract related to residential premises that are
subject to a community title scheme, company title scheme or
units plan and was rescinded under section 54 (Rescission of
village contract on grounds relating to disclosure statement)—
the resident must execute all instruments necessary to enable
re-registration of—
(i) for premises that are subject to a company title scheme—
the shares; or
(ii) in any other case—title in the name of the operator under
the rescinded contract.
(4) The ACAT may—
(a) on the application of the resident—order the operator to comply
with subsection (3) (a); and
(b) on the application of the operator—order the resident to comply
with subsection (3) (b).
(5) Any fees or costs associated with a rescission during the cooling-off
period are to be paid by the party incurring them.
(6) Any fees or costs associated with a rescission at any other time
(including registration fees) are payable by the operator, and the
ACAT may, on the application of the resident, order the operator to
make the payment.
(7) If subsection (3) (b) applies to the resident, the ACAT may only make
an order under subsection (6) if the resident has complied with
subsection (3) (b).
(8) The resident is not liable to make any payment to the operator in
relation to the rescinded contract unless ordered to do so by the
ACAT.
(9) Either party to a rescinded residence contract may make a claim to
the ACAT for—
(a) if the resident has received the benefit of possession of the
residential premises the subject of the rescinded contract—
compensation, adjustment or accounting that is just and
equitable between the parties; or
(b) damages, costs, or expenses arising out of a breach of any term,
condition or warranty contained or implied in the contract (other
than a term, condition or warranty mentioned in the Civil Law
(Sale of Residential Property) Act 2003, section 11 (Certain
conditions to be included in contract).
(10) The ACAT must not make an order under subsection (9) that affects
another right or obligation under this section.
(11) This section has effect despite the Civil Law (Sale of Residential
Property) Act 2003, section 12 to section 17.
Note The Civil Law (Sale of Residential Property) Act 2003, ss 12 to 17 (the
conveyancing provisions) provide (among other things) for a cooling-off
period in relation to a contract for the sale of residential property (within
the meaning of that Act) and allow the contract to be rescinded during
that period. However, the rights and obligations of the parties under the
conveyancing provisions differ from those under this section. The
conveyancing provisions do not allow rescission after completion of the
contract, and the buyer under the rescinded contract forfeits 0.25% of the
purchase price to the seller.
(12) In this section:
cooling-off period—see section 53 (5).
58
Consequence of resident’s rescission of other village
58 Consequence of resident’s rescission of other village
(1) This section applies if a resident of a retirement village gives a
rescission notice in relation to a village contract that is not a residence
contract or a service contract.
(2) As soon as practicable (but not later than 1 month) after the rescission
notice is given, the operator of the retirement village must repay all
money paid by or on behalf of the resident under the rescinded
(3) The ACAT may, on application by the resident, order the operator to
comply with subsection (1).
(4) Either party to a contract rescinded under this section may make a
claim to the ACAT for compensation, adjustment or accounting that
is just and equitable between the parties taking into account any
benefits that the rescinding party received under the contract before
its rescission.
(5) The ACAT must not make an order under subsection (2) that affects
another right or obligation under this section.
59
Condition report for certain residential premises
59 Condition report for certain residential premises
(1) The operator of a retirement village must not allow a prospective
resident of the village to occupy residential premises in the village
unless the operator gives to the prospective resident a report relating
to the condition of the premises at the start of the prospective
resident’s occupation of the premises (a condition report).
(2) A regulation may provide for how a condition report must be
completed including in relation to the following matters:
(a) the time within which the condition report must be completed;
(b) the time within which the condition report must be given to a
prospective resident.
(3) The operator of the retirement village must attach a copy of the
condition report to the first village contract that the prospective
resident enters into with the operator.
(4) If the operator allows a prospective resident to occupy residential
premises in contravention of this section, the operator is prohibited
from recovering any payment or other compensation for any alleged
damage occurring to the premises during the prospective resident’s
occupancy of the premises.
(5) This section does not apply if—
(a) the prospective resident is to occupy the residential premises
together with a resident who is already in occupation of the
(b) the prospective resident is, or will be, a registered interest holder
in relation to the residential premises that the prospective
resident intends to occupy.
60
Operator to give resident or prospective resident copy of
60 Operator to give resident or prospective resident copy of
village contract
(a) the operator and a resident of the retirement village enter into a
(b) the contract is entered into by the operator and resident signing
the contract in each other’s presence; and
(c) the operator does not give the resident a copy of the contract
within 14 days after it is signed.
(2) The operator of a retirement village commits an offence if—
(a) the operator and a resident of the retirement village enter into a
(b) the contract is entered into by the operator and resident signing
the contract other than in each other’s presence; and
(c) the operator does not, within 14 days after the resident signs the
contract, give the resident a copy of the contract signed by the
(3) The operator of a retirement village commits an offence if—
(a) a residence contract for the village is in the form of a sublease
for a term longer than 3 years; and
(b) the operator does not—
(i) lodge the sublease for registration under the Land Titles
Act 1925 within 1 month after the day the sublease is given
to the operator in registrable form; and
(ii) give the resident a copy of the fully-executed sublease
within 14 days after the day the sublease is returned to the
operator after its registration.
61
Contractual rights of residents against new operator
61 Contractual rights of residents against new operator
(1) A village contract between a resident of a retirement village and a
former operator of the village may be enforced against any operator
for the time being of the village.
(2) However, a proceeding does not lie against the owner of land in a
retirement village (not being a person involved in the management or
control of the village) for the enforcement of rights under
subsection (1) unless an operator other than the owner has failed to
satisfy a judgment given for the enforcement of those rights and the
owner is—
(a) a party to the contract; or
(b) a close associate of an operator involved in the management or
control of the village.
62
New operator to convene meeting of residents
62 New operator to convene meeting of residents
(1) A person must, within 28 days before the person becomes an operator
of an existing retirement village—
(a) hold a meeting of residents and former occupants of the village;
and
(b) give a report at the meeting about the operator’s—
(i) financial ability to operate the village; and
(ii) plans for the management and operation of the village
(including any changes that the operator proposes to
make).
(2) A person commits an offence if the person does not comply with
(3) An offence against subsection (2) is a strict liability offence.
(4) A person must arrange a meeting for this section by sending to each
resident and former occupant of the village, at least 7 days before the
day of the meeting, a written notice setting out—
(a) the time and place of the meeting (which is to be held in the
retirement village if practicable, or at a venue near the village);
and
(b) the reason for the meeting.
63
Renovations and alteration of fixtures or fittings
63 Renovations and alteration of fixtures or fittings
(1) A resident of a retirement village may, with the written consent of the
operator of the village—
(a) add, remove or alter a fixture or fitting on or within the resident’s
residential premises; or
(b) renovate the resident’s residential premises.
(2) The operator may make the consent subject to reasonable conditions.
(3) Without limiting subsection (2), the operator may make the consent
subject to the condition that, on the ending of the resident’s village
contract, the premises will be returned to the same condition as they
were in immediately before the consent was given.
(4) The operator must not unreasonably withhold consent to an addition,
removal or alteration of a fixture or fitting, or to a renovation,
mentioned in subsection (1).
(5) Despite subsection (1), the consent of the operator is not required—
(a) to remove or alter a fixture or fitting that was added by a
resident, unless the removal or alteration of the fixture or fitting
is likely to cause significant damage to the residential premises;
or
(b) to renovate, or to add, remove or alter a fixture or fitting,
64
Renovations and alteration of fixtures or fittings—ACAT
64 Renovations and alteration of fixtures or fittings—ACAT
orders
(1) A resident of a retirement village may apply to the ACAT for an
order—
(a) allowing the addition, removal or alteration of a stated fixture or
fitting on or within the resident’s residential premises; or
(b) allowing a stated renovation to be made to the resident’s
residential premises; or
(c) amending a condition to which the operator’s consent is subject.
(2) The ACAT may make the order if satisfied that—
(a) the operator of the retirement village has unreasonably withheld
consent under section 63; or
(b) a condition to which consent is subject is unreasonable in the
circumstances.
(3) If the ACAT makes an order under this section, the operator is taken
to have given consent in accordance with the terms of the order.
65
Renovations and alteration of fixtures or fittings—
65 Renovations and alteration of fixtures or fittings—
limitation of s 63 and s 64
(1) Nothing in section 63 or section 64 authorises a person—
(a) to add, remove or alter a fixture or fitting in, or renovate
residential premises within, a retirement village if consent to do
so is required under a territory law and the consent has not been
obtained; or
(b) to carry out development in contravention of the Planning
Act 2023.
development—see the Planning Act 2023, section 14 (1).
66
Prescribed matters in village contracts
66 Prescribed matters in village contracts
(1) A regulation may prescribe a matter that must be included in (or
excluded from) a village contract.
(2) If a regulation requires a village contract to include a term in the
contract, the contract is taken to include the term.
(3) If a regulation requires a matter to be excluded from a village
contract, the contract is void to the extent that it includes the matter.
67
Standard form of village contract
67 Standard form of village contract
A regulation may prescribe a standard form of village contract
(a standard form contract).
68
Effect of noncompliance with standard form contract
68 Effect of noncompliance with standard form contract
(1) If a standard form contract is prescribed for a village contract, a
village contract entered into after the day the form is prescribed is
void to the extent to which it is not in the same form as, or does not
have the same effect as, the standard form contract.
(2) A village contract that does not include a standard term is taken to
include the standard term.
(3) An amendment of a standard term in a village contract has no effect.
(4) However—
(a) nothing in subsection (1) or (3) voids a person’s residence right
in relation to residential premises in a retirement village to
which the village contract applies; and
(b) despite subsection (1) or (3), the parties to a village contract for
which a standard form contract is prescribed may include an
additional term in the contract if the term—
(i) does not contravene this Act or another territory law; and
Note A regulation may prescribe a matter that must be excluded
from a village contract (see s 66).
(ii) is not inconsistent with a term—
(A) in the standard form contract; or
(B) required to be included by a regulation made under
section 66 (Prescribed matters in village contracts).
(5) On application by a resident of a retirement village, the ACAT may
order that an additional term included in a village contract under
subsection (4) (b) is void if satisfied the additional term does not
comply with subsection (4) (b).
69
Provision for payment of ingoing contributions
69 Provision for payment of ingoing contributions
A village contract that provides for the payment of an ingoing
contribution may also provide—
(a) that the contribution must be paid by instalments at the intervals
stated in the contract; and
(b) if the contribution must be paid by instalments—for interest on
the unpaid portion of the contribution to be payable, worked out
as prescribed by regulation.
70
Parties to minimise loss from breach of village contract
70 Parties to minimise loss from breach of village contract
The rules of law relating to mitigation of loss or damage on breach of
a contract apply to a breach of a village contract.
71
Meaning of end of the settling-in period—div 5.2
71 Meaning of end of the settling-in period—div 5.2
end of the settling-in period, for a village contract, means the latest
of the following days:
(a) the day that is 90 days after the day when the resident is entitled
to occupy the residential premises under the residence contract
for the premises;
(b) if the resident occupies the premises before the day mentioned
in paragraph (a)—the day that is 90 days after the resident first
occupies the residential premises;
(c) another day agreed to by the operator of the retirement village
and the resident.
72
Ending of village contract during settling-in period
72 Ending of village contract during settling-in period
(1) A resident under a village contract for a retirement village may,
before the end of the settling-in period, end the village contract—
(a) by permanently vacating the residential premises within the
(b) for a contract other than a residence contract—by written notice
to the operator of the village indicating an intention to end the
(2) Nothing in this section requires a resident to occupy the residential
premises before ending a village contract under this division.
(3) The ending of a village contract under this division does not constitute
a breach of contract or other civil wrong.
73
Liability of former occupant if village contract ended
73 Liability of former occupant if village contract ended
during settling-in period
(1) If a village contract is ended under this division, the former occupant
is only liable to pay—
(a) fair market rent for the period (if any) that the former occupant
occupied the residential premises under the contract; and
(b) for a village contract that is a residence contract—the cost of any
repairs for damage to the residential premises in excess of fair
wear and tear; and
(c) a reasonable administration fee; and
(d) any other amount prescribed by regulation.
(2) Despite subsection (1), if the former occupant has not occupied the
residential premises before ending a village contract under this
division, the occupant is only liable to pay—
(a) the cost of any repairs for damage to the residential premises in
excess of fair wear and tear; and
(b) a reasonable administration fee.
(3) The amount the former occupant is liable to pay under this section
may be offset against any amounts that are to be refunded to the
former occupant under section 74.
(4) An administration fee mentioned in this section must not be more than
the maximum fee prescribed by regulation.
74
Operator to refund certain payments made by resident
74 Operator to refund certain payments made by resident
If a village contract is ended under this division, the operator of the
retirement village must refund or pay to the former occupant—
(a) for a former occupant who is a registered interest holder (other
than a registered long-term sublessee)—the proceeds from the
sale of the residential premises to which the resident is entitled
under the village contract; and
(b) any ingoing contribution paid to the operator under the village
(c) any recurrent charges paid to the operator under the village
(d) any other amount prescribed by regulation.
75
Time for making of payments
75 Time for making of payments
(1) A refund or a payment under section 74 to a former occupant, other
than a former occupant who is a registered interest holder, must be
made within—
(a) 14 days after the day the village contract is ended; or
(b) if another period is ordered by the ACAT—the ordered period.
(2) A refund or a payment under section 74 to a former occupant who is
a registered interest holder must be made within 14 days after the
earliest of the following:
(a) the day the operator receives full payment under a residence
contract with an incoming resident of the premises;
(b) the day the operator enters into a village contract with an
incoming resident of the premises;
(c) the day the operator enters into a residential tenancy agreement
with an incoming tenant of the premises;
(d) the day a person takes up residence in the premises with the
(e) if the operator buys the premises from the former occupant—the
day the operator completes the purchase.
(3) If a payment that is required to be made under this division is not paid
within the time required by this section, the operator of a retirement
village or former occupant may apply to the ACAT for an order
requiring the amount to be paid within a stated time.
(4) If the operator and former occupant are unable to agree on an amount
required to be paid under this division, the operator or former
occupant may apply to the ACAT for an order in relation to—
(a) the amount of fair market rent (if any) required to be paid under
section 73 (1) (a) (Liability of former occupant if village
contract ended during settling-in period); or
(b) what damage (if any) to the residential premises is in excess of
fair wear and tear, and the amount (if any) required to be paid
under section 73 (1) (b); or
(c) the reasonable administration fee (if any) required to be paid
under section 73 (1) (c).
(5) The ACAT may consider, but is not bound by—
(a) for subsection (4) (a)—the rent (if any) stated in the village
contract when deciding the fair market rent; and
(b) for subsection (4) (c)—the administration fee (if any) stated in
the village contract when deciding a reasonable administration
fee.
76
Former occupant not required to pay certain amounts
76 Former occupant not required to pay certain amounts
(1) If a village contract is ended under this division, the former occupant
is not required to pay any of the following amounts that would, but
for this section, be payable by the former occupant under the contract:
(a) any recurrent charges;
(b) any departure fee;
(c) the cost of refurbishment of residential premises the subject of
the residence contract;
(d) the costs of sale or letting of the premises;
(e) any amount stated in the village contract as being payable for
ending the contract during the settling-in period;
(f) any other amount prescribed by regulation.
contract—see section 218.
Part 6
General management of
Part 6 General management of
77
Application—div 6.1
77 Application—div 6.1
This division does not apply in relation to—
(a) a part of a retirement village that is subject to a community title
scheme or units plan; or
(b) the residents of that part of the village.
Note The body corporate’s by-laws (for a community title scheme) or the
owners corporation’s rules (for a units plan) apply to the part of a
retirement village that is subject to the scheme or plan (see Community
Title Act 2001 and Unit Titles (Management) Act 2011).
77A
Meaning of resident—pt 6
77A Meaning of resident—pt 6
Note Resident is defined for the Act in the dictionary.
78
Subject-matter of village rules
78 Subject-matter of village rules
(1) Written rules relating to the use, enjoyment, control and management
of a retirement village may be made in accordance with this division.
(2) The rules may relate to (but are not limited to) any of the following:
(a) people other than residents or employees of the retirement
village living in the village;
(b) visitors, including overnight or short-stay guests;
(c) the making of noise;
(d) the parking of motor vehicles;
(e) the disposal of garbage;
(f) the keeping of pets;
(g) gardening and landscaping;
(h) the use and operation of services or facilities (including
restrictions on their use);
(i) any other matter prescribed by regulation.
79
Village rules to be consistent with other laws
79 Village rules to be consistent with other laws
A village rule has no effect to the extent that it is inconsistent with
this Act or any other territory law.
80
Model village rules
80 Model village rules
A regulation may prescribe model village rules that may be adopted
in relation to a retirement village.
81
Operator may make village rules for new villages
81 Operator may make village rules for new villages
(1) The operator, or proposed operator, of a proposed retirement village
may make village rules for the village.
(2) The operator of a retirement village may make village rules for the
village if, when the rules are made, the village has no residents.
82
Villages without rules
82 Villages without rules
If a retirement village has no village rules, the operator of the village
may make rules for the village in the same way as village rules may
be amended under section 83.
83
Proposed amendment of village rules
83 Proposed amendment of village rules
(1) The operator of a retirement village must propose an amendment of
the village rules if either of the following requests the operator in
writing to do so:
(a) a minimum of 5 residents, or 10% of the residents, (whichever
is the greater) of the village (or, if the village has fewer than 10
occupied residential premises, residents from a majority of the
occupied residential premises);
(b) the residents committee for the village.
(2) The operator may propose an amendment of the village rules even if
there has been no request under subsection (1).
(3) A proposed amendment is not to be made unless the residents of the
village, by a special resolution, consent to the amendment.
(4) An operator who receives a request under subsection (1) must call a
meeting of the residents of the village, to be held not later than 28
days after the day the request is received, to consider a special
resolution about the proposed amendment.
(5) The residents committee for the retirement village or, if there is no
residents committee, a representative of the residents of the
retirement village, must tell the operator of the outcome of the vote
taken to obtain the residents’ consent to a proposed amendment.
(6) Within 7 days after the day the operator is told of the outcome of the
vote taken to obtain the residents’ consent under this section, the
operator must tell the residents of the outcome of the vote.
(7) If consent is given, the amendment takes effect 7 days after the day
the operator is told about the special resolution giving consent (or
from any later date stated in the resolution).
(8) However subsection (6) does not apply if the operator, within the
7-day period mentioned in subsection (6)—
(a) makes an application to the ACAT under section 84 (Operator’s
objection to proposed amendment of village rules); or
(b) seeks the residents’ consent to an amendment to the approved
annual budget (if any) under section 85 (Operator’s concern that
amendment will impose additional cost).
(9) Nothing in this section prevents the ACAT from making an order
under section 86 (Other applications to ACAT about village rules)
modifying or setting aside a village rule as amended.
(10) For this section:
amendment, of the village rules, includes the following:
(a) an amendment of a village rule;
(b) the addition of a new rule to the village rules;
(c) the omission of a village rule that is in force.
84
Operator’s objection to proposed amendment of village
84 Operator’s objection to proposed amendment of village
rules
(1) This section applies if the operator of a retirement village objects to a
proposed amendment of the village rules to which the residents have
consented under section 83 (Proposed amendment of village rules).
(2) The operator may apply to the ACAT for an order prohibiting the
proposed amendment.
(3) On application, the ACAT may, after considering the circumstances
of the case, make an order—
(a) prohibiting the proposed amendment; or
(b) directing that the proposed amendment (or the proposed
amendment modified as stated in the order) takes effect from a
stated day.
85
Operator’s concern that amendment will impose
85 Operator’s concern that amendment will impose
additional cost
(1) This section applies if the operator of a retirement village considers
that a proposed amendment of the village rules to which the residents
have consented under section 83 (Proposed amendment of village
rules) will impose a cost on the operator additional to that allowed for
in the approved annual budget.
(2) The operator must seek the residents’ consent to a proposed
amendment of the approved annual budget.
Note Div 7.4 provides for proposed and approved annual budgets. Section 167
allows an operator to seek the residents’ consent to a proposed
amendment of the approved annual budget if unforeseen requirements for
expenditure arise.
(3) Section 163 (ACAT orders—decisions about spending) does not
apply in relation to a consent sought under this section.
(4) If the residents refuse to consent to the proposed amendment of the
approved annual budget, the operator may apply to the ACAT for an
order in relation to the proposed amendment.
(5) On application, the ACAT may, after considering the circumstances
of the case, order that the approved annual budget—
(a) be amended as stated in the order; or
(b) not be amended.
(6) On making the order, the ACAT may also order—
(a) that the proposed amendment of the village rules has no effect;
or
(b) that the proposed amendment of the village rules (or the
proposed amendment modified as stated in the order) takes
effect from a stated date.
(7) This section does not apply in relation to a retirement village if the
residents have consented under section 160 (Residents may consent
to not receiving proposed annual budget) to not being supplied with
a proposed annual budget.
86
Other applications to ACAT about village rules
86 Other applications to ACAT about village rules
(1) The operator or a resident of a retirement village may, at any time,
apply to the ACAT for an order in relation to 1 or both of the
(a) a dispute concerning the legal validity of a village rule in force
in the village;
(b) a village rule in force in the village that the operator or resident
considers to be unjust, unconscionable, harsh or oppressive.
(2) The ACAT may decide the application by making an order—
(a) setting aside the village rule; or
(b) modifying the operation of the rule in its application to 1 or more
residents of the village; or
(c) upholding the rule.
87
Compliance with village rules
87 Compliance with village rules
(1) The operator and residents of a retirement village must comply with
the village rules.
Note The ACAT may make various orders in relation to compliance with the
village rules (see s 181). It may also end a resident’s residence contract
for serious or persistent breaches of the village rules (see s 188).
(2) If a village rule is inconsistent with a term of a village contract, the
village rule prevails to the extent of the inconsistency.
(3) However, if the inconsistent term of the village contract is a standard
term, that term prevails over the rule.
88
Compliance with village rules by people other than
88 Compliance with village rules by people other than
operator and residents
(1) It is a term of a village contract that the resident of the retirement
village or former occupant (the occupant) who is a party to the
contract will use the occupant’s best endeavours to ensure compliance
with the village rules by—
(a) a tenant or subtenant, under division 10.5 (Sale or letting of
premises by certain residents), of the occupant; and
(b) any other person who is lawfully on the occupant’s residential
premises (other than a person who has a right of entry to the
premises without the occupant’s consent); and
(c) any other person who is in the village at the occupant’s
invitation.
(2) It is also a term of a village contract that the operator of the retirement
village will use the operator’s best endeavours to ensure compliance
with the village rules by—
(a) the operator’s tenants; and
(b) the operator’s employees; and
(c) any other person who is in the village at the operator’s invitation.
89
Certain people not to be operators
89 Certain people not to be operators
(1) A person to whom this section applies commits an offence if the
person—
(a) is the operator of a retirement village; or
(b) is involved in the promotion or sale of a residence right in
relation to residential premises in a retirement village; or
(c) in any way (whether directly or indirectly) is involved in, or
takes part, in the management or control of a retirement village.
(3) This section applies to the following people:
(a) a person who is bankrupt or personally insolvent;
(b) a person who is a director of a Chapter 5 body corporate;
(c) a person who was a director of a company that has been wound
up (otherwise than voluntarily);
(d) a person who has been convicted (in the ACT or elsewhere) of
an offence involving—
(i) physical violence to another person; or
(ii) fraud or dishonesty, if the offence is punishable on
conviction by imprisonment for a period of not less than
3 months.
(4) However, this section applies—
(a) to a person mentioned in subsection (3) (c)—only for the period
of 5 years following the day the company is wound up; and
(b) to a person mentioned in subsection (3) (d)—only for the period
of 5 years following the person’s conviction (or, if the person
was sentenced to imprisonment, within the period of 5 years
following the person’s release).
Part 5
body corporate—see the Corporations Act, section 9.
Chapter 5 body corporate—see the Corporations Act, section 9.
90
Operator to provide secure premises
90 Operator to provide secure premises
(1) The operator of a retirement village must ensure that the village
generally is reasonably secure.
(2) Without limiting subsection (1), the operator must ensure that—
(a) all residential premises in the village have enough locks or other
security devices necessary to make the premises reasonably
secure; and
(b) the locks and other security devices are in good working order.
(3) Subsection (2) does not apply in relation to residential premises that
are subject to a community title scheme, company title scheme or
units plan unless the operator, or a close associate of the operator, is
the owner of the premises.
(4) If a tradesperson, or someone else, requires access to residential
premises to carry out works, the operator must give reasonable notice
of the access needed to each affected resident.
(5) A resident of a retirement village who believes on reasonable grounds
that the village is not reasonably secure may apply to the ACAT for
the following:
(a) an order directing the operator to comply with subsection (1)
or (2);
(b) any other order mentioned in section 181 (1) (ACAT orders).
91
Operator to provide safe premises
91 Operator to provide safe premises
(1) The operator of a retirement village must ensure that the village
generally is reasonably safe.
(2) Without limiting subsection (1), the operator must—
(a) prepare written safety and emergency procedures; and
(b) take reasonable steps to ensure that all residents and staff are
familiar with those procedures; and
(c) provide emergency assembly point signage consistent with
those procedures; and
(d) provide signage at key points in the village to assist local
emergency and home care service agencies to locate village
(e) give residents an emergency out-of-hours number to contact the
operator in case of serious disturbances in the village; and
(f) do a safety inspection at least once each year, and make a safety
inspection report on the findings of the inspection; and
(g) make a copy of the inspection report available to the residents
committee for the retirement village (if any) and place a copy of
the report on the notice board in a communal area within the
(h) take any other action prescribed by regulation to ensure that the
village generally is reasonably safe.
(3) Without limiting subsection (2) (h), a regulation may provide for the
(a) the form of the written safety and emergency procedures;
(b) the conduct of safety inspections required under
subsection (2) (f);
(c) the manner and form of a safety inspection report;
(d) the period that the safety inspection report must remain on the
notice board as mentioned in subsection (2) (g).
(4) A resident who believes on reasonable grounds that the retirement
village is not reasonably safe may apply to the ACAT for any of the
(a) an order directing the operator to comply with subsection (1)
or (2);
(b) any other order mentioned in section 181 (1) (ACAT orders).
92
Operator to provide village emergency system on request
92 Operator to provide village emergency system on request
(1) The residents of a retirement village may, by a special resolution, ask
the operator of the village to provide or arrange for a village
emergency system of a stated kind in the village.
(2) If a request is made, the residents are taken to have consented to the
inclusion, in the proposed annual budget relating to the financial year
following the date of the resolution, of the cost of providing or
arranging for the village emergency system.
(3) If the operator fails to comply with the request, any resident of the
village may apply to the ACAT for an order directing the operator to
provide or arrange for a village emergency system of the kind
requested by the residents.
(4) The operator must ensure that any village emergency system provided
in the village (whether or not it was provided at the request of the
residents) is regularly and adequately monitored and serviced.
(5) Nothing in this section prevents a resident from arranging, at the
resident’s expense, for the provision of a system that will enable the
resident to call for assistance in an emergency.
(6) A system mentioned in subsection (5) is not a village emergency
system.
village emergency system means a system that enables a resident to
call for assistance in an emergency.
1 an emergency call button in residential premises and common areas
2 an emergency call bracelet that can be worn by a resident
93
Failure to provide emergency and home care service
93 Failure to provide emergency and home care service
vehicles access to retirement village
operator fails to take all reasonable steps to ensure that—
(a) emergency and home care service personnel have unimpeded
vehicular access to the residential premises in the village at all
times; and
(b) the residents of the village, and local emergency and home care
service agencies, are consulted and kept informed about any
arrangements made to secure the access.
1 information about access arrangements available at meetings of residents
2 signs indicating areas to be kept clear
94
Change in services or facilities provided at village
94 Change in services or facilities provided at village
(1) The operator of a retirement village must propose a change in the
services and facilities provided at the village if either of the following
requests the operator in writing to do so:
(a) a minimum of 5 residents, or 10% of the residents, (whichever
is the greater) of the village (or, if the village has fewer than 10
occupied residential premises, residents from a majority of the
occupied residential premises); or
(b) the residents committee for the village.
(2) The operator may propose a change in the services and facilities
provided at the village even if there has been no request under
(3) The services and facilities provided at the village are not to be
changed as proposed unless the residents of the village, by a special
resolution, consent to the change.
(4) An operator who receives a request under subsection (1) must call a
meeting of the residents of the village, to be held not later than
28 days after the day the request is received, to consider a special
resolution about the proposed change.
(5) A resident is not entitled to vote on the special resolution unless the
proposed service or facility is (or is proposed to be) available to the
(6) If consent is given, the operator may change the service or facility in
accordance with the consent as soon as practicable (unless the
resolution provides that the change takes effect on a stated later day).
(7) Despite the terms of a village contract, the operator does not breach
the contract by changing services or facilities.
(8) If the operator considers that a proposed change in services or
facilities will impose a cost on the operator additional to that allowed
for in the approved annual budget, the operator must seek the
residents’ consent to an amendment of the approved annual budget.
Note Div 7.4 provides for proposed and approved annual budgets. Section 167
allows an operator to seek the residents’ consent to an amendment of the
approved annual budget if unforeseen requirements for expenditure arise.
(9) Section 163 (ACAT orders—decisions about spending) does not
apply in relation to a consent sought under this section.
(10) If the residents refuse to consent to the amendment, section 85 (4)
to (6) (Operator’s concern that amendment will impose additional
cost) applies to the refusal in the same way that it applies to a refusal
under that section.
(11) In this section:
change, in a service or facility, includes the following:
(a) a reduction in the service or facility;
(b) the withdrawal of the service or facility;
(c) an increase in the service or facility;
(d) any other change in the service or facility;
(e) the provision of a new service or facility.
95
Operator not to reduce or withdraw certain services and
95 Operator not to reduce or withdraw certain services and
facilities
If a development approval for a retirement village requires that a
particular service or facility be provided for the life of the village, the
operator of the village must not reduce or withdraw that service or
facility (despite any consent of the residents) unless the development
approval is amended to omit or amend that requirement.
96
Consequence of unlawful change in services or facilities
96 Consequence of unlawful change in services or facilities
(1) If the operator of a retirement village reduces or withdraws, or allows
the reduction or withdrawal of, a service or facility otherwise than in
accordance with section 94 (Change in services or facilities provided
at village), a resident of the village may apply to the ACAT for an
order for 1 or more of the following:
(a) the reinstatement of the service or facility;
(b) the payment of compensation in relation to the reduced or
withdrawn service or facility;
(c) a reduction in the recurrent charges payable by 1 or more of the
residents;
(d) the payment of the whole or part of those recurrent charges to
the ACAT until the service or facility is reinstated.
(2) On application, the ACAT may make—
(b) any other order mentioned in subsection (1).
97
Operator not to require residents to patronise particular
97 Operator not to require residents to patronise particular
businesses
operator restricts the capacity of a resident of the village to buy goods
and services from a person.
preventing a resident from obtaining meals-on-wheels services
(3) Subsection (1) does not apply if the operator prohibits a goods or
service provider from entry (or further entry) into the retirement
village because the provider has—
(a) unduly disturbed the peace and quiet of the village; or
(b) failed to observe reasonable rules of conduct established by the
(c) contravened a village rule about motor vehicle traffic that is
displayed in, or near the boundary of, the village.
98
Operator not to demand power of attorney
98 Operator not to demand power of attorney
operator requires a resident or prospective resident of the village to
give the operator a power of attorney in favour of—
(a) the operator; or
(b) a close associate of the operator; or
(c) a person nominated by the operator.
(3) A power of attorney given in favour of a person mentioned in
subsection (1) (a) to (c) by a resident or prospective resident is void.
(4) Subsection (3) does not apply if the resident or prospective resident
who gave the power of attorney is a relative of the operator.
(5) This section has effect despite—
(a) the Powers of Attorney Act 2006; and
(b) the terms of the instrument creating the power of attorney.
Note The Powers of Attorney Act 2006, s 32 provides that an enduring power
of attorney is not revoked even if the person who gave the power of
attorney becomes a person with impaired decision-making capacity.
99
Operator to respect rights of residents
99 Operator to respect rights of residents
(1) The operator of a retirement village must respect the rights of
residents of the village.
(2) Without limiting subsection (1), the operator—
(a) must not interfere, or cause or allow any interference, with the
reasonable peace, comfort or privacy of a resident; and
(b) must take all reasonable steps to ensure that all residents meet
their obligations under their village contracts, the village rules
and this Act, so that a resident does not unreasonably interfere
with the peace, comfort and quiet enjoyment of fellow residents;
and
(c) must not interfere with the right of a resident to autonomy over
the resident’s possessions and personal, financial and other
matters; and
(d) must not inhibit any resident from exercising self-reliance in
matters relating to the resident’s personal, domestic or financial
affairs; and
(e) must use the operator’s best endeavours to ensure that each
resident lives in an environment free from harassment and
intimidation.
(3) A resident who reasonably believes that the operator of the village
has contravened this section in relation to the resident may apply to
the ACAT for an order for either or both of the following:
(a) an order directing the operator to pay compensation to the
resident;
(b) an order directing the operator to comply with this section.
(4) On application, the ACAT may make—
(b) any other order mentioned in subsection (3).
100
Restriction of operator’s access to residential premises
100 Restriction of operator’s access to residential premises
(1) The operator of a retirement village and any person authorised by the
operator (an authorised person) commits an offence if—
(a) a person has a residence right in relation to residential premises
in the village; and
(b) the operator or authorised person enters the residential premises.
(3) Subsection (1) does not apply if the operator or authorised person
enters the residential premises in any of the following circumstances:
(a) if the resident consents to the entry;
(b) in an emergency, or if the operator has reasonable cause for
concern about the health or safety of a person that the operator
believes is on the premises;
(c) to carry out urgent repairs;
(d) to carry out general maintenance, but only if 7 days’ written
notice has been given to the resident;
(e) to carry out a general inspection of the premises, but only if—
(i) the resident is not a registered interest holder in relation to
the premises; and
(ii) 7 days’ written notice has been given to the resident; and
(iii) a general inspection of the premises has not been carried
out more than once in the preceding 12 months;
(f) in accordance with an order of the ACAT;
(g) in any other circumstance prescribed by regulation.
(4) The ACAT may, on application by the operator, make an order
authorising the operator or another person to enter residential
(5) A resident who reasonably believes that the operator has contravened
this section in relation to the resident may apply to the ACAT for
either or both of the following:
(a) an order directing the operator to pay compensation to the
resident;
(b) an order directing the operator to comply with this section.
(6) On application, the ACAT may make—
(b) any other order mentioned in subsection (4).
101
Right to appoint agent
101 Right to appoint agent
(1) A resident of a retirement village may appoint a person as the
resident’s agent for receiving notices or other documents to be given
to the resident under a village contract or under this Act.
1 if the resident cannot read or write English
2 if the resident is sick
3 if the resident is going to be away from the resident’s residential premises for
some time
(2) An appointment of the operator of the retirement village (or a close
associate of the operator or a person nominated by the operator) as an
agent under this section is void.
(3) An appointment—
(a) may be made in a village contract or at any time after the day
the contract commences; and
(b) may be revoked at any time by the resident.
(4) However, the appointment or revocation has no effect until it is
notified in writing to the operator of the village.
(5) The operator must give to the resident’s agent, until the time the
appointment expires or is revoked, any notice or other document that
the operator is required to give to the resident under a village contract
or this Act.
(6) A notice or other document that is required by this section to be given
to the resident’s agent and that is not given to the agent, is taken not
to have been given to the resident.
102
Residents to be given access to information about them
102 Residents to be given access to information about them
(1) The operator of a retirement village—
(a) must, if asked at any reasonable time, give a resident of the
village access to any information about the resident that is held
by the operator; and
(b) must give the resident a copy of that information if the resident
asks for it; and
(c) if the resident satisfies the operator that any of the information
is incorrect—must correct the information, if asked, in
accordance with the resident’s instructions.
Note Section 258 prohibits the operator of a retirement village from charging
the resident for giving access to the information or providing a copy of it.
(2) If the operator fails to comply with a request made under this section,
the resident may apply to the ACAT for an order directing the
operator to comply.
103
Residents committees and organisations
103 Residents committees and organisations
(1) The residents of a retirement village may consent to the establishment
of a residents committee for the village.
(2) The residents committee for a retirement village—
(a) if the retirement village is subject to a units plan—is the
executive committee of the owners corporation for the units
(b) in any other case—must be elected by the residents.
(3) Only 1 residents committee may be established for a retirement
(4) Only a resident of a retirement village may be a member of the
residents committee for the village.
(5) If more than 1 entity (regardless of its name) purports to be the
residents committee for a retirement village, the operator or a resident
of the village may apply to the ACAT for an order deciding which
entity (if any) is the residents committee for the village.
(6) A residents committee may, subject to a regulation—
(a) decide its own procedure; and
(b) form 1 or more subcommittees and decide their procedure; and
(c) call meetings of all the residents of the village to consider and
vote on matters mentioned in section 112 (1) (Meetings of
(7) The operator of a retirement village commits an offence if the
(a) discourages or prevents the establishment of a residents
committee; or
(b) obstructs a residents committee in the exercise of its functions;
or
(c) attempts to prevent residents from joining an organisation for
residents of retirement villages.
(8) An offence against subsection (7) is a strict liability offence.
(9) The operator must provide reasonable administrative assistance to the
residents committee on request by the committee, but only if an
estimate of the cost of providing the assistance has been included in
the approved annual budget for the financial year in which the
assistance is requested.
printing or distributing notices
(10) Nothing in this section prevents the residents from establishing other
committees of residents for other purposes.
(11) In this section:
executive committee, of an owners corporation—see the Unit Titles
(Management) Act 2011, dictionary.
104
Membership of residents committee
104 Membership of residents committee
(1) A person must not hold the same office, or hold an office exercising
the same (or substantially the same) function, on the residents
committee for a retirement village for more than 3 consecutive years,
except as provided by regulation.
(2) For subsection (1), the 3 consecutive year period starts on the day the
person starts performing the functions of the office.
(3) The election of a person to an office in contravention of subsection
(1) is void.
(4) Any act, matter or thing done by a residents committee, in good faith,
even though at the time that the act, matter or thing was done the
election of a member of the committee was void under subsection (3),
is valid as if the election of the member was not void under that
subsection.
(5) Anything done by a residents committee is not invalid only because
the election of a committee member was void under subsection (3).
(6) This section does not apply to a residents committee for a retirement
village that is subject to a units plan.
office, on a residents committee for a retirement village—
(a) means a position on the committee with stated functions; and
president, treasurer, secretary
(b) does not include the position of ordinary member.
105
Regulations about residents committees
105 Regulations about residents committees
A regulation may—
(a) provide for matters in relation to the election, functions and
procedure of a residents committee and subcommittee; and
(b) prescribe model rules that may be adopted by a residents
committee.
106
Meetings between residents committee and operator
106 Meetings between residents committee and operator
(1) The operator of a retirement village must, on the reasonable request
of a residents committee for the village, meet the residents committee
(or a representative of the committee).
(2) Subsection (1) does not apply to an operator who owns land in the
village unless the operator is also involved in the management and
control of the village.
(3) A residents committee (or a representative of the committee) must,
on the reasonable request of the operator, meet the operator.
(4) If a reasonable request under this section is not complied with, the
operator or the residents committee that made the request may apply
to the ACAT for an order directing compliance with the request.
107
Operator must hold annual management meeting
107 Operator must hold annual management meeting
operator does not hold, in each financial year for the village, an annual
management meeting of the residents of the village in accordance
with this section.
(3) The annual management meeting must be held not more than
4 months after the end of each financial year.
(4) Nothing in this section prevents the operator from calling a meeting
of the residents at any other time.
108
Operator must give notice of annual management
108 Operator must give notice of annual management
meeting
operator does not give written notice to the residents of the village at
least 14 days before the annual management meeting of—
(a) the time and place of the meeting; and
(b) the agenda for the meeting.
(3) A notice under subsection (1) must include an invitation to the
residents to submit—
(a) written questions to the operator at least 7 days before the
meeting; and
(b) other questions at the meeting.
(4) A regulation may prescribe matters that must be included in the
agenda for an annual management meeting.
109
Annual management meeting—chair
109 Annual management meeting—chair
(1) The annual management meeting of the residents of a retirement
village must be chaired by—
(a) the operator of the village; or
(b) a representative of the operator who is authorised to answer
questions put at the meeting in accordance with section 110.
(2) If the operator or representative is required to leave any part of the
meeting under section 113 (4), that part of the meeting must be
chaired by a resident agreed to by the residents at the meeting.
Note The annual management meeting is a meeting of the residents of a
retirement village and, accordingly, the provisions of this Act applying to
meetings of the residents also apply to an annual management meeting.
110
Questions to be answered at annual management
110 Questions to be answered at annual management
meeting
(1) The chair of the annual management meeting must ensure that the
residents of a retirement village have a reasonable opportunity to put
questions to the operator of the village or a representative of the
operator at the meeting.
(2) The operator or representative of the operator must answer questions
submitted in writing under section 108 (3) (a) (Operator must give
notice of annual management meeting) or put to the operator or
representative at the meeting—
(a) if possible—in reasonable detail at the relevant meeting; and
(b) to the extent that compliance with paragraph (a) is not
possible—in reasonable detail, as soon as practicable after the
meeting, in writing given to all of the residents of the retirement
(3) Nothing in this section requires the operator or representative to—
(a) answer an unreasonable question; or
(b) answer a question relating to an excluded matter prescribed by
110A
Operator must keep minutes of meetings with residents
110A Operator must keep minutes of meetings with residents
(1) This section applies to the following meetings of a retirement
(a) an annual management meeting; or
(b) a meeting between the operator and the residents of the village
convened by the operator, whether under this Act or otherwise.
(2) The operator of the retirement village must keep minutes of the
meeting.
Note If minutes or other records kept by the operator of a retirement village
contain personal information, the operator must comply with the
Australian Privacy Principles under the Privacy Act 1988 (Cwlth) in
relation to that information.
(3) The operator must—
(a) make the minutes available for inspection by residents at the
(b) for minutes in relation to a meeting held on a regular basis—
arrange for the minutes to be adopted at the following meeting.
(4) The operator may keep the minutes in an electronic form.
111
Villages without residents committee
111 Villages without residents committee
If there is no residents committee elected for a retirement village, the
operator of the village must call a meeting of the residents (to be held
in or near the village) if requested to do so by—
(a) for a village with fewer than 10 occupied residential premises—
residents from a majority of the occupied residential premises;
or
(b) for a village with 10 or more occupied residential premises—the
greater of—
(i) 5 residents of the village; and
(ii) 10% of the residents of the village.
112
Meetings of residents
112 Meetings of residents
(1) The residents of a retirement village may meet to consider and vote
on—
(a) any matter for which the consent of the residents is required
under this Act; and
(b) any other matter affecting the management and operation of the
(c) any other matter prescribed by regulation.
(2) A meeting of residents of a retirement village (other than an annual
management meeting) must be chaired by a resident agreed to by the
residents at the meeting.
(3) A vote of the residents of a retirement village on a matter mentioned
in subsection (1) (b) does not bind the operator of the village.
(4) If 2 or more residents occupy the same residential premises in the
(a) each of them may attend a meeting mentioned in subsection (1);
but
(b) only 1 of them may vote on a matter mentioned in
(5) Despite subsection (4), the residents of a retirement village may, by
special resolution at a meeting, consent to each resident occupying
the same residential premises having a separate vote at the meeting,
on a matter mentioned in subsection (1).
(6) Subsections (4) and (5) do not apply to the residents of a retirement
village that is subject to a units plan.
Note For voting procedures for residents of a retirement village that is subject
to a units plan, see the Unit Titles (Management) Act 2011, sch 3, s 3.22.
(7) A meeting of residents may be held simultaneously with a meeting
that the residents, in another capacity, are required to hold or
participate in under another Act.
a meeting required under the Unit Titles (Management) Act 2011
(8) The operator of a retirement village commits an offence if the
operator interferes with a resident exercising a power under
(9) An offence against subsection (8) is a strict liability offence.
112A
Meetings of residents—methods of communication
112A Meetings of residents—methods of communication
(1) This section applies to a meeting of residents of a retirement village
mentioned in section 112 (1).
(2) The residents committee may authorise that the meeting be held using
a method of communication, or a combination of methods of
communication, that allows a resident taking part to hear or otherwise
know what each other resident taking part says without the residents
being in each other’s presence.
a phone link, a satellite link, an internet or intranet link, in writing
(3) If there is no residents committee for a retirement village, the
residents of the village may make an authorisation under
subsection (2) if requested to do so by—
(a) for a village with fewer than 10 occupied residential premises—
residents from a majority of the occupied residential premises;
or
(b) for a village with 10 or more occupied residential premises—the
greater of—
(i) 5 residents of the village; and
(ii) 10% of the residents of the village.
(4) A person who takes part in a meeting conducted under subsection (2)
is taken, for all purposes, to be present at the meeting.
113
Attendance at meetings of residents
113 Attendance at meetings of residents
(1) A resident of a retirement village is not obliged to attend, or vote at,
a meeting of the residents of the village.
(2) A person (other than a proxy of a resident) who is not a resident of
the village (including a person who occupies residential premises in
the village otherwise than under a residence right) must not attend, or
remain at, a meeting of the residents unless the residents at the
meeting consent to the person attending the meeting.
Note A person is not a proxy for a resident unless the person is appointed under
s 116 (see s 116 (3)).
(3) Subsection (2) does not apply to the operator of a retirement village,
or a representative of the operator, during the annual management
meeting of the village.
(4) An operator or representative who is attending a meeting of the
residents (with the residents’ consent), or attending an annual
management meeting of the village, must leave the meeting during
any vote that is taken by the residents at the meeting, but may return
to the meeting after the vote.
(5) Despite subsection (2), a person may attend a meeting of the residents
of a retirement village and vote at the meeting on behalf of a resident
if the person—
(a) is authorised to do so under a power of attorney given in favour
of the person by the resident; or
(b) is a person appointed under the Guardianship and Management
of Property Act 1991 as guardian for the resident.
114
Meetings of residents—attendance by investigator
114 Meetings of residents—attendance by investigator
(a) the residents of the village consent to an investigator attending
a meeting of the residents; and
(b) the operator prevents or hinders the investigator attending the
meeting.
115
No restrictions on voting
115 No restrictions on voting
(1) A village contract may explain the system under which, at the time
the contract is entered into, the residents of the retirement village meet
and consider and vote on matters mentioned in section 112 (1)
(Meetings of residents).
(2) However, a term of the contract that purports to bind a resident to a
particular system is void to the extent that it does so.
(3) A covenant, and any contract or other arrangement between the
operator of a retirement village and a resident of the village, under
which a particular vote of the resident (or the resident’s failure to
vote) on a matter relating to the village attracts a penalty, is void to
the extent of that provision.
116
Proxies
116 Proxies
(1) A resident of a retirement village may, from time to time, appoint a
person as the proxy of the resident.
(2) The appointment must be made in the way prescribed by regulation.
(3) A person is not the proxy of a resident of a retirement village for this
Act unless the person is appointed under this section.
(4) An appointment of the operator of a retirement village or close
associate of the operator as a proxy is void.
(5) A person appointed as the proxy of a resident of a retirement village
cannot vote on a matter on the resident’s behalf if the resident
personally votes on the matter.
(6) This section applies despite the terms of the instrument appointing a
person as the proxy of the resident.
(7) This section does not apply to residents of a retirement village that is
subject to a units plan.
Note For proxy votes for residents of a retirement village that is subject to a
units plan, see the Unit Titles (Management) Act 2011, sch 3, s 3.26.
117
Certain limitations on proxies
117 Certain limitations on proxies
(1) If a person holds appointments as the proxy of 2 residents (or any
other number of residents prescribed by regulation) in any
1 retirement village at any 1 time, the appointment of the person as
proxy of another resident of the village, while the person continues to
hold the other appointments, is void.
(2) An appointment of a person as the proxy of a resident of a retirement
(a) may be revoked at any time by the appointor by written notice
to the person; and
(b) if it is not revoked, ends—
(i) after the first meeting at which it is exercised; or
(ii) if it is not exercised during the period of 6 months
immediately following the day the appointment is made—
on the end of that period.
(3) Nothing in this section prevents a resident of a retirement village from
reappointing a person as the resident’s proxy after the revocation or
ending of an appointment.
(4) This section does not apply to residents of a retirement village that is
subject to a units plan.
Note For proxy votes for residents of a retirement village that is subject to a
units plan, see the Unit Titles (Management) Act 2011, sch 3, s 3.26.
118
Effect of certain votes
118 Effect of certain votes
A vote or resolution of the residents of a retirement village that
purports to oblige the operator of the village to do either of the
following is void:
(a) to abandon or amend plans for development in the village;
(b) to stop acting as the operator of the village.
Note Submissions about proposed development in the village can be made
under the Planning Act 2023 at the time the operator seeks development
approval under that Act.
Retirement villages may contain residential premises that are subject to a
company title scheme, a community title scheme or a units plan.
Resolutions of directors or members of the companies, and votes of
relevant bodies corporate for community title schemes and owners
corporations for unit titles have no relevance to decisions of residents
under this Act.
119
Notice of intention to vacate
119 Notice of intention to vacate
The maximum notice of an intention to vacate residential premises in
a retirement village that the operator of the village may require from
a resident of the premises (whether under a contract or otherwise) is
1 month’s written notice.
Division 6.4 Right of certain relatives to become residents
Division 6.4 Right of certain relatives to become
residents
120 Relative may ask to enter into residence contract
(1) This section applies to a relative of a resident of residential premises
in a retirement village if the relative—
(a) is a retired person; and
(b) is occupying the residential premises at the time that the resident
dies or vacates the premises; and
(c) had been occupying those premises for at least 6 months
immediately before that time.
(2) The relative of the resident may ask the operator of the retirement
village to enter into a residence contract in relation to the premises.
(3) This section does not apply if—
(a) the resident is, or was, a registered interest holder (other than a
registered long-term sublessee) in relation to the residential
(b) the resident is taken to be a resident under section 8 (2)
(Meaning of residence right).
121
Application to ACAT by relative of resident
121 Application to ACAT by relative of resident
(1) This section applies if the operator of a retirement village does not
enter into a residence contract mentioned in section 120 (2) with a
relative of a resident of residential premises in the village.
(2) The relative of the resident may apply to the ACAT for an order
directing the operator to enter into the contract within the time stated
in the order.
Right of certain relatives to become residents Division 6.4
122
Application to ACAT by operator in relation to
122 Application to ACAT by operator in relation to
possession of premises by relative of resident
(1) This section applies if a relative of a resident of residential premises
in a retirement village—
(a) does not enter into a residence contract mentioned in section 120
(2) with the operator of the village in relation to the residential
(b) fails to give vacant possession of the residential premises to the
(2) The operator may apply to the ACAT for an order directing the
relative of the resident to deliver vacant possession of the residential
premises to the operator within the time stated in the order.
(3) However, if the ACAT is satisfied that the relative of the resident
failed to enter into a residence contract only because the terms of the
proposed contract were unreasonable, the ACAT may—
(a) set the terms of the contract, taking into account the following:
(i) the terms of other residence contracts in force in the
(ii) the terms in the standard form contract;
(iii) a term required to be included by a regulation made under
section 66 (Prescribed matters in village contracts); and
(b) direct the operator and the relative to enter into the contract
within the time stated in the order.
(4) The operator must not enter into a residence contract in relation to the
residential premises with a person other than the relative of the
resident unless—
(a) the relative gives vacant possession of the premises to the
(b) the ACAT orders the relative to do so.
(5) A contract entered into in contravention of subsection (4) is void.
123
Application to ACAT by operator in relation to
123 Application to ACAT by operator in relation to
possession of premises by other person
(a) a person who was occupying residential premises in a retirement
village with a resident of the village who has vacated the
premises is not a person mentioned in section 120 (1) (Relative
may ask to enter into residence contract); and
(b) the person fails to give vacant possession of the premises to the
(2) The operator may apply to the ACAT for an order requiring the
person to give vacant possession of the premises to the operator
within the time stated in the order.
124
Residents to respect rights of other people
124 Residents to respect rights of other people
(1) It is a term of every residence contract for residential premises in a
retirement village that the resident of the village must respect the
rights of other residents of, and other people in, the village.
(2) Without limiting subsection (1), a resident—
(a) must not interfere, or cause or allow any interference, with the
reasonable peace, comfort or privacy of another resident; and
(b) must respect the rights of the operator of the village, and agents
and employees of the operator, to work in an environment free
from harassment or intimidation; and
(c) must not act in a manner that adversely affects the occupational
health and safety of people working in the village.
Administrators, receivers and managers Division 6.6
(3) If the operator reasonably believes that a resident has contravened this
section, the operator may apply to the ACAT for an order directing
the resident to comply with this section.
Div 6
6 Administrators, receivers and
Division 6.6 Administrators, receivers and
managers
125
Application for order appointing administrator
125 Application for order appointing administrator
(1) The director-general may apply to the Supreme Court for an order
appointing a stated person as an administrator in relation to the
operator of a retirement village—
(a) to exercise all the functions of the operator; or
(b) to exercise stated functions of the operator; or
(c) to exercise all the functions other than stated functions of the
(2) The director-general may apply for an order only if—
(a) the director-general reasonably believes that the wellbeing or
financial security of the residents of the retirement village has
been, or is likely to be, seriously affected by the continued
operation of the retirement village by the operator; or
(b) the director-general reasonably believes that the operator is
wilfully and repeatedly acting in contravention of an order made
by the ACAT or a court in relation to the retirement village; or
(c) the retirement village is the subject of an existing order under
this section.
(3) For the purpose of determining whether an application for an order
should be made, the director-general may appoint a person to inquire
into, and report to the director-general on, the wellbeing and financial
security of the residents of the retirement village.
(4) More than 1 order may be made under this division in relation to the
same retirement village.
126
No application without consent
126 No application without consent
The director-general must not apply for an order appointing a person
as an administrator under this division unless the person has given
written consent to the appointment.
127
Order may exempt administrator from certain obligations
127 Order may exempt administrator from certain obligations
Without limiting the terms of the order of appointment of an
administrator, the order may exempt the administrator from
complying with stated obligations of the operator of a retirement
128
Effect of appointment
128 Effect of appointment
(1) The operator of a retirement village must not, while an order of
appointment of an administrator is in force in relation to the village,
exercise any function of the operator that the administrator is
authorised to exercise.
(2) However, the appointment of an administrator does not relieve the
operator of any of the operator’s liabilities under a village contract.
(3) Subject to the terms of the appointment, a person appointed as an
administrator—
(a) must comply with all the obligations of the operator in relation
to the functions that the person is authorised to exercise
(including functions under a village contract); and
(b) is, in the exercise of the operator’s functions, taken to be the
Administrators, receivers and managers Division 6.6
129
Expenses of administration
129 Expenses of administration
(1) The expenses incurred by an administrator in exercising the functions
of the operator of a retirement village are payable from—
(a) recurrent charges; and
(b) any other funds that would be available to the operator for those
expenses if the administrator had not been appointed.
(2) The Territory is not liable for—
(a) any expenses incurred by an administrator to exercise the
functions of the operator; or
(b) any liability of the operator for which an administrator is
appointed.
130
Administrator may amend village contract
130 Administrator may amend village contract
(1) Despite any other provision of this Act, an administrator may, with
the director-general’s consent—
(a) amend or revoke an approved annual budget; or
(b) amend the recurrent charges payable by the residents of the
retirement village; or
(c) change the services offered by the retirement village.
(2) The director-general may give consent under subsection (1) only if,
in the director-general’s opinion, the proposed revocation,
amendment or change is done to—
(a) assist in the process of finding a new operator for the retirement
(b) ensure the financial viability of the retirement village.
(3) Nothing done by the administrator in accordance with this section
constitutes a breach of contract or other civil wrong.
(4) No compensation is payable to any person because of the operation
of this section or anything done under this section.
131
Revocation of appointment
131 Revocation of appointment
The appointment of an administrator may be revoked or amended by
the Supreme Court (whether or not on application by the
director-general).
132
Receivers and managers
132 Receivers and managers
(1) If a receiver, or a receiver and manager, is appointed in relation to the
operator of a retirement village, the person appointed must (subject
to the terms of the appointment) comply with the operator’s
obligations under this Act as if that person were the operator.
(2) The terms of appointment of a receiver, or a receiver and manager,
may exempt the appointee from complying with stated obligations.
(3) This section does not apply to the extent that it is inconsistent with
the Corporations Act.
133
Protection from liability—administrator, receiver or
133 Protection from liability—administrator, receiver or
receiver and manager
An administrator, a receiver or receiver and manager is not civilly
liable for anything done or omitted to be done honestly and without
recklessness—
(a) in the exercise of a function under this Act; or
(b) in the reasonable belief that the conduct was in the exercise of a
function under this Act.
Preliminary Division 7.1
Part 7 Financial management of
Division 7.1 Preliminary
133A Meaning of resident—pt 7
134 Financial year for retirement village
(1) The operator of a retirement village must fix a financial year for the
(2) The financial year must be a period of 12 months beginning and
ending on dates fixed by the operator.
135
Definitions—div 7.2
135 Definitions—div 7.2
(1) In this division:
capital item, for which the operator of a retirement village is
responsible—
(a) means—
(i) a building or structure in the village; and
(ii) plant, machinery or equipment used in the village’s
operation; and
(iii) any part of a building or structure in the village, including
any part of a building or structure in a community area,
amenity area, service area or access area; and
(iv) any other item prescribed by regulation; but
(b) does not include a capital item that is—
(i) owned by a resident of the village; or
(ii) common property under a community title scheme or units
(iii) prescribed by regulation.
capital maintenance—
(a) means works carried out for repairing or maintaining a capital
item; and
(b) includes works prescribed by regulation as being capital
maintenance; but
(c) does not include works prescribed by regulation as not being
capital maintenance.
capital replacement—
(a) means works carried out for replacing a capital item; but
(b) does not include—
(i) capital maintenance; or
(ii) replacing a part of a capital item (unless replacing the part
substantially improves, adds to or alters the capital item).
common property—
(a) under a community title scheme—see the Community Title
Act 2001, section 18; and
(b) under a units plan—see the Unit Titles Act 2001, section 13.
136
Meaning of urgent—div 7.2
136 Meaning of urgent—div 7.2
urgent—repair or replacement of a capital item in a retirement village
is urgent if it is to rectify any of the following:
(a) a burst water service;
(b) a blocked or broken lavatory service;
(c) a serious roof leak;
(d) a gas leak;
(e) a dangerous electrical fault;
(f) flooding or serious flood damage;
(g) serious storm or fire damage;
(h) a failure or breakdown of the gas, electricity or water supply to
residential premises in the village;
(i) a failure or breakdown of any essential service on the residential
premises for hot water, cooking, heating or laundering;
(j) any fault or damage that causes the village to be unsafe or
insecure;
(k) anything else prescribed by regulation.
136A
Capital maintenance and replacement guidelines
136A Capital maintenance and replacement guidelines
(1) The Minister may make guidelines in relation to this division.
(2) Without limiting subsection (1), a guideline may make provision in
relation to the following:
(a) the operation of this division;
(b) the classification of, including the distinction between, capital
maintenance and capital replacement.
(3) A guideline is a notifiable instrument.
137
Operator’s obligations—capital maintenance or
137 Operator’s obligations—capital maintenance or
(1) The operator of a retirement village must maintain each item of
capital for which the operator is responsible in a reasonable condition
taking into account the following:
(a) the age of the item;
(b) the prospective life of the item;
(c) the money paid to the operator by the residents under a village
contract (including ingoing contributions).
Note Capital maintenance—see the dictionary.
(2) If it is not practical to maintain a capital item, the operator may
replace the item.
(3) The operator must repair or replace a capital item for which the
operator is responsible within a reasonable time after becoming aware
of the need to repair or replace the item.
138
Residents’ obligations—capital maintenance or
138 Residents’ obligations—capital maintenance or
(1) If a resident of a retirement village becomes aware that a capital item
for which the operator of the village is responsible and that is located
in the resident’s residential premises needs to be repaired or replaced,
the resident must notify the operator as soon as practicable after
becoming aware of it.
(2) The resident must reimburse the operator in relation to any damage
(other than fair wear and tear) caused by the resident to a capital item
for which the operator is responsible.
(3) The resident must not hinder or obstruct the operator, or a person
authorised by the operator, from maintaining (including repairing) or
replacing a capital item for which the operator is responsible.
Note Section 100 sets out the circumstances in which an operator of a
retirement village or a person authorised by the operator may enter
residential premises for which a person has a residence right.
139
Resident may carry out urgent work
139 Resident may carry out urgent work
(1) A resident of a retirement village may carry out capital maintenance
or capital replacement (the work) in relation to a capital item for
which the operator of the village is responsible—
(a) if the work is urgent; and
(b) after the resident gives the operator a reasonable opportunity to
carry out the work.
(2) The operator of the retirement village must reimburse the resident for
the reasonable costs incurred by the resident in carrying out the work.
(3) If the operator does not reimburse the resident within 21 days after
the resident seeks reimbursement, the resident may apply to the
ACAT for an order requiring the operator to reimburse the resident.
(4) The ACAT may also, if the ACAT considers it appropriate, make an
order for the payment of interest at a rate determined by the ACAT.
140
ACAT may make orders for capital maintenance and
140 ACAT may make orders for capital maintenance and
(1) If a resident of a retirement village considers that the operator of the
village is not maintaining or replacing capital items for which the
operator is responsible when necessary, the resident may apply to the
ACAT for an order directing the operator—
(a) to carry out stated maintenance of a capital item within the time
stated in the order; or
(b) to replace a stated capital item within the time stated in the order.
Note Maintaining a capital item includes repairing the item—see s 135 (1), def
capital maintenance, par (a).
(2) If the operator of a retirement village considers that a resident of the
village has caused damage (other than fair wear and tear) to a capital
item for which the operator is responsible, the operator may apply to
the ACAT for an order directing the resident to reimburse the operator
for the cost of the maintenance or replacement of the capital item as
a result of the damage.
141
Funding of certain capital maintenance and capital
141 Funding of certain capital maintenance and capital
(1) The operator of a retirement village may fund the cost of capital
maintenance for which the operator is responsible from the following
sources:
(a) the capital works fund for the village (if any);
(b) recurrent charges.
(2) The operator must bear the cost of capital replacement of a capital
item for which the operator is responsible.
(3) This section does not authorise the funding of any of the following
from the capital works fund or recurrent charges for the retirement
village:
(a) the construction of a new building or a new stage of the village;
(b) any work arising from the breach of a statutory warranty under
the Building Act 2004, section 88 (Statutory warranties), in
relation to which a proceeding may be started under that Act;
(c) the depreciation of capital items;
(d) the refurbishment of vacant residential premises in the village;
(e) anything else prescribed by regulation.
142
Capital maintenance to be included in proposed annual
142 Capital maintenance to be included in proposed annual
(a) the operator of a retirement village is required to supply the
residents of the village with a proposed annual budget; and
(b) the operator proposes to use any recurrent charges or any part of
the capital works fund (if any) for the village to fund capital
maintenance.
(2) The operator must, in the proposed annual budget—
(a) list each item of capital maintenance that is proposed to be
carried out; and
(b) state, in relation to each item, the expected cost; and
(c) include, in relation to each item, any quotes the operator has
obtained; and
(d) include provision for urgent capital maintenance.
143
Capital works fund
143 Capital works fund
(1) This section applies if an approved annual budget for a retirement
village provides for the setting aside of any part of the recurrent
charges for funding capital maintenance in a period that extends
beyond the end of the financial year to which the budget relates.
(2) The operator of the village must establish and maintain a capital
works fund.
(3) However, this section does not require that a separate fund be
established for each financial year.
(4) A capital works fund must be held in an account with an authorised
deposit-taking institution or as otherwise prescribed by regulation.
(5) The operator must pay the following into the capital works fund:
(a) an amount of the recurrent charges as may be needed under an
approved annual budget;
(b) any interest received from the investment of the whole, or part
of, the capital works fund.
144
Misuse capital works fund amounts
144 Misuse capital works fund amounts
operator uses a capital works fund amount for a purpose other than
any of the following:
(a) to meet the cost of capital maintenance;
(b) if the residents of the village consent to a proposal that the
operator distribute any part of the fund that is not required to
fund capital maintenance to the residents in equal shares—to
give effect to that proposal;
(c) for a purpose prescribed by regulation.
(3) A proposal mentioned in subsection (1) (b) may be made by the
operator or the residents committee.
(4) If the residents consent to a proposal made by the residents committee
under subsection (1) (b), the operator may apply to the ACAT for an
order that—
(a) the distribution is not to be made; or
(b) approves or amends the proposed distribution.
(5) In making an order under subsection (4), the ACAT may consider the
(a) the proportion of the capital works fund proposed to be
distributed;
(b) whether the proportion of the capital works fund proposed to be
distributed is reasonably likely to be required to fund capital
maintenance;
(c) anything else the ACAT considers appropriate.
145
Retirement village to be insured
145 Retirement village to be insured
operator does not insure and keep insured the village in accordance
with this section.
(3) The village must have insurance that—
(a) covers the following:
(i) damage;
(ii) costs incidental to the reinstatement or replacement of
insured buildings;
(iii) public liability; and
(b) provides for the reinstatement of property to its condition when
new.
(4) A regulation may prescribe a minimum amount of public liability
insurance that is required under this section.
(5) Insurance for damage and costs incidental to the reinstatement or
replacement of insured buildings in the retirement village must cover
the full replacement value of the buildings.
(6) Nothing in this section requires the operator to insure a capital item
other than a capital item for which the operator is responsible.
(7) The operator may fund insurance required under this section from
recurrent charges if the cost of the insurance is included in the
approved annual budget.
146
Sale of capital items to residents
146 Sale of capital items to residents
(a) the operator sells a capital item for which the operator is
responsible; and
(b) the sale is to a resident of the village; and
(c) the sale is not in accordance with the requirements prescribed by
(3) A contract, agreement, scheme or arrangement is unenforceable to the
extent that it purports to sell, or pass responsibility for the
maintenance or replacement of, capital items in contravention of
(4) Subsection (1) does not apply to the sale of residential premises, or
fixtures in residential premises, in a retirement village.
mentioned in s (4) (see Criminal Code, s 58).
resident includes a prospective resident.
sell, a capital item to a resident, includes pass responsibility for the
capital item, directly or indirectly, to the resident.
147
Operator to pay certain recurrent charges
147 Operator to pay certain recurrent charges
(1) The operator of a retirement village must pay, in relation to new
residential premises in the village, an amount equal to the recurrent
charges for general services payable under a village contract in
relation to comparable (or the most nearly comparable) residential
new residential premises means residential premises that have not and
have never been the subject of a village contract.
148
Amendment of recurrent charges
148 Amendment of recurrent charges
(1) A village contract may provide that any recurrent charges payable
under the contract—
(a) are to be amended at stated intervals (or on stated dates)
according to a fixed formula; or
Example—fixed formula
in proportion to variations in the Consumer Price Index
(b) may be amended otherwise than according to a fixed formula.
(2) If a village contract provides for any recurrent charges payable under
the contract to be amended otherwise than according to a fixed
formula—
(a) the recurrent charges must not be amended more than once in a
financial year; and
(b) any subsequent amendment within that period has no effect.
(3) A village contract must not provide for more than 1 method of
amending the recurrent charges payable under the contract.
(4) If a village contract provides for more than 1 method of amending
recurrent charges, the method that results in the lowest increase in
recurrent charges is the applicable method.
149
Recurrent charges amended by fixed formula
149 Recurrent charges amended by fixed formula
(1) If a village contract provides that recurrent charges are to be amended
according to a fixed formula, the operator of a retirement village must
give a resident who is a party to the contract written notice of the
amendment at least 14 days before it takes effect.
(2) The notice must state the following:
(a) the amount of the new recurrent charges;
(b) the day when the new recurrent charges take effect;
(c) anything else prescribed by regulation.
(3) The resident is not required to pay any increase in the resident’s
recurrent charges until notice of the increase is given in accordance
with subsection (1).
(4) The operator of a retirement village commits an offence if—
(a) a village contract provides that recurrent charges under the
contract must be amended according to a fixed formula; and
(b) the operator amends the recurrent charges; and
(c) the amendment does not comply with—
(i) the fixed formula; or
(ii) this section.
(5) An offence against this section is a strict liability offence.
150
Recurrent charges amended otherwise than by fixed
150 Recurrent charges amended otherwise than by fixed
formula
(1) This section applies to the amendment of recurrent charges payable
under a village contract if the contract provides that the recurrent
charges are to be amended otherwise than in accordance with a fixed
formula.
Note Amendment of recurrent changes otherwise than in accordance with this
Act is an offence (see s 152).
(2) The operator of a retirement village must give a resident of the village
written notice of a proposed amendment of recurrent charges under
this section—
(a) on a day, at least 30 days before the day the proposed
amendment takes effect, agreed to by the operator and the
residents; or
(b) if no day is agreed—at least 60 days before the day the proposed
amendment takes effect; or
(c) if a regulation prescribes another time—at the prescribed time.
(3) The notice must—
(a) state the amount of the proposed recurrent charges; and
(b) state the date it is intended that the proposed recurrent charges
are to be payable; and
(c) include details of any action taken to minimise the proposed
amendment of recurrent charges; and
(d) state that the amendment will take effect only if the residents
affected by the proposed amendment consent to the amendment
or the ACAT orders that it take effect; and
(e) include anything else prescribed by regulation.
(4) A notice may—
(a) cancel an earlier notice under this section; or
(b) provide for a lesser increase than the increase stated in an earlier
notice.
(5) A notice that provides for a lesser increase than the increase stated in
an earlier notice is taken to have been given on the day the earlier
notice was given.
(6) However, the 30-day period mentioned in section 153 (2) (Residents
consent to amendment) begins, in relation to a later notice, on the day
the later notice is actually given.
(7) If the operator operates more than 1 retirement village, the operator
must deal with each village separately under this section.
152
Amending certain recurrent charges otherwise than in
152 Amending certain recurrent charges otherwise than in
accordance with Act
(a) a village contract provides that recurrent charges payable under
the contract are to be amended as set out in section 150
(Recurrent charges amended otherwise than by fixed formula);
and
(b) the operator increases the recurrent charges; and
(c) the increase is—
(i) beyond the upper limit (if any) stated in the contract; or
(ii) not in accordance with section 150.
153
Residents consent to amendment
153 Residents consent to amendment
(1) An amendment of recurrent charges payable under a village contract
takes effect under section 150 (Recurrent charges amended otherwise
than by fixed formula) only if—
(a) the residents of the retirement village consent to it; or
(b) the ACAT orders under section 154 that the amendment takes
effect.
(2) The residents must, not later than 30 days after receiving a notice
under section 150—
(a) meet, consider and vote on the proposed amendment; and
(b) tell the operator of the retirement village that they consent, or do
not consent, to the amendment.
Note Consent by residents to the amendment of recurrent charges under a
village contract is not consent to spending stated in a proposed annual
budget for the village (see s 162 (10)).
(3) If the operator is told nothing under subsection (2) (b), the residents
are taken to have refused to consent to the amendment.
(4) If the residents committee for the village (or, if there is no residents
committee, a resident) requests information about the proposed
amendment for the purpose of deciding whether to consent to it, the
operator must give the information requested.
(5) However, the operator does not have to give information prescribed
by regulation.
(6) If the operator fails to give the information within the time prescribed
by regulation, the residents committee or resident may apply to the
ACAT for an order requiring the operator to give the information
stated in the order.
154
ACAT orders—recurrent charges
154 ACAT orders—recurrent charges
(1) The operator of a retirement village may apply to the ACAT for an
order in relation to a proposed amendment of recurrent charges
payable under a village contract for residential premises in the village
if—
(a) the consent of the residents of the village is required under
section 153 (2) before the proposed amendment can take effect;
and
(b) the residents do not consent to the proposed amendment.
(2) The ACAT may, on application by the operator, make an order that—
(a) the proposed amendment is to take effect, with or without
modification; or
(b) the proposed amendment is not to take effect.
(3) An order under subsection (2) (a) may—
(a) state the date the amendment is to take effect; and
(b) order that the recurrent charges are not to be further amended
for a stated period of not longer than 12 months.
(4) In making an order, the ACAT may consider the following:
(a) the general market level of recurrent charges paid at similar
retirement villages in the same or a similar locality as the
retirement village;
(b) the level and cost of services and facilities provided for in the
proposed annual budget or approved annual budget;
(c) any proposed amendments (including additions) to the services
and facilities to which the residents have consented;
(d) the cost of general services required to be provided by the
operator;
(e) the frequency and amount of past amendments of the recurrent
charges;
(f) if the village is subject to a community title scheme or units
plan—the amounts of levies and other contributions payable by
the residents under the Community Title Act 2001 or the Unit
Titles (Management) Act 2011;
(g) any other matter the ACAT considers relevant.
155
ACAT orders—refund of recurrent charges
155 ACAT orders—refund of recurrent charges
(1) A resident of a retirement village may apply to the ACAT for an order
directing the refund of overpaid recurrent charges on any grounds,
including the ground that an increase in the charges came into effect
otherwise than in accordance with this division.
(2) An application must be lodged not later than 12 months after the day
the increase in the charges came into effect.
(3) The ACAT may make an order directing a refund of overpaid
recurrent charges.
156
Failure to give receipt for payment of recurrent charges
156 Failure to give receipt for payment of recurrent charges
(1) A person commits an offence if the person—
(a) receives a payment for recurrent charges owing under a
resident’s village contract; and
(b) fails to give a receipt for the payment to the person entitled to
it—
(i) if the payment was made in person—at the time the
payment is made; or
(ii) if the payment was not made in person—as soon as
practicable after the payment is made.
Maximum penalty: 5 penalty units.
(3) A receipt for the payment of recurrent charges must include the
(a) the name of the operator of the retirement village;
(b) the name of the resident paying the recurrent charges;
(c) the resident’s address at the village;
(d) the period for which the recurrent charge is paid;
(e) the day the payment is received;
(f) the amount of the payment.
(4) Subsection (1) does not apply to recurrent charges paid by agreement
between the resident and the operator into an account at an authorised
deposit-taking institution nominated by the operator.
mentioned in s (4) (see Criminal Code, s 58).
157
Reduction of recurrent charges in certain circumstances
157 Reduction of recurrent charges in certain circumstances
(1) This section applies if residential premises, or a part of residential
premises, in a retirement village—
(a) are destroyed or cease to be usable as residential premises, or
become unsuitable for habitation, other than as a result of a
breach of the village contract for the residential premises; or
(b) are compulsorily appropriated or acquired by a Commonwealth
or Territory entity.
(2) The recurrent charges payable by the resident of the village are
reduced accordingly.
Note The operator or resident may also want to end the residence contract—
see s 185.
(3) If the operator and resident do not agree that the recurrent charges
should be reduced, or do not agree on the extent to which they should
be reduced, either party may apply to the ACAT for an order
declaring that the recurrent charges—
(a) are not to be reduced; or
(b) are to be reduced by the amount, and from the date, stated in the
order.
Div 7
4 Proposed and approved annual
Division 7.4 Proposed and approved annual
budgets
158
Meaning of proposed annual budget—div 7.4
158 Meaning of proposed annual budget—div 7.4
proposed annual budget, for a financial year for a retirement village,
means a document setting out the way the operator of the village
proposes to spend the money the operator receives as recurrent
charges during the financial year.
159
Proposed annual budget
159 Proposed annual budget
(1) The operator of a retirement village must give each resident in the
village a copy of the proposed annual budget for each financial year
for the village—
(a) on a day, at least 30 days before the beginning of the financial
year to which the budget relates, agreed to by the operator and
the residents; or
(b) if no day is agreed—at least 60 days before the beginning of the
financial year to which the budget relates; or
(c) if a regulation prescribes another time—at the prescribed time.
(3) If the operator operates more than 1 retirement village, the operator—
(a) may give a combined proposed annual budget in relation to 2 or
more villages; but
(b) when giving the budget to each resident and each former
occupant of a particular village, must include a separate budget
for that village.
(4) If the retirement village is subject to a units plan, the operator must
ensure that a copy of the general fund budget for a financial year,
required for the annual general meeting of the owners corporation
under the Unit Titles (Management) Act 2011, section 75, is given to
the residents of the village at the same time as the copy of the
proposed annual budget for the year.
(5) A regulation may make provision in relation to—
(a) matters that must be dealt with in a proposed annual budget; and
(b) matters that must not be financed by way of using amounts
received for recurrent charges.
(6) The proposed annual budget must be accompanied by a notice that
includes the following:
(a) a statement to the effect that the operator of the retirement
(i) must seek the residents consent to spend the money in the
way set out in the budget; and
(ii) if the residents do not give their consent—may spend the
money in accordance with an order of the ACAT;
(b) a brief statement explaining the reasons for any changes in
spending from the previous financial year;
(c) a statement to the effect that if any change in spending results
from a change in the services or facilities the operator provides
at the village, consent to that change must be by special
resolution of the residents;
(d) anything else prescribed by regulation.
(7) The notice may include a statement to the effect that the notice is the
operator’s formal request for the residents’ consent to the spending of
the money in the way set out in the budget.
(8) Nothing in this section prevents the operator cancelling a proposed
annual budget and replacing it with an amended budget at any time.
(9) This section is subject to section 160.
160
Residents may consent to not receiving proposed annual
160 Residents may consent to not receiving proposed annual
(1) The residents of a retirement village may consent to not being given
a proposed annual budget for a financial year for the village if, in the
year the consent is given, the total amount of the recurrent charges to
be collected for the year is not more than—
(2) If the residents consent to not being given a proposed annual budget
under section 159, that section, and section 161 to section 167 do not
apply in relation to the retirement village while the consent is in force.
(3) Consent given under subsection (1) remains in force until—
(a) it is revoked by a resolution of the residents of the retirement
(b) the total amount of the recurrent charges to be collected for the
financial year to which the consent relates is more than—
(i) the amount prescribed by regulation; or
(ii) if no amount is prescribed—$50 000.
(4) The operator of the retirement village must notify the residents of the
name of the auditor of the accounts at the annual management
meeting if—
(a) consent given under subsection (1) is in force; and
(b) the operator is required to have the accounts of the village
audited under section 168 (Auditing of accounts).
161
ACAT order—proposed annual budget
161 ACAT order—proposed annual budget
If the operator of a retirement village does not give the residents of
the village a proposed annual budget as required by section 159, a
resident of the village may apply to the ACAT for an order directing
the operator to give the budget.
More sections below