163ACAT orders—decisions about spending

163 ACAT orders—decisions about spending (1) If the residents of a retirement village refuse to consent to the spending stated in the proposed annual budget for a financial year for the village, the operator of the village or a resident may apply to the ACAT for an order in relation to the spending proposed for the financial year. (2) On application under subsection (1), the ACAT may do 1 or more of the following: (a) make an interim order allowing spending on all items in the proposed annual budget other than those stated under section 162 (6) (c) (Residents consent to spending); (b) give a procedural direction to the parties to assist the parties to agree about the proposed spending, including a direction to prepare new spending for services and to meet and discuss disputed matters; (c) make a recommendation to the parties about the proposed spending, including a recommendation about the cost and kind of the services to be provided; (d) order that the spending is to be as itemised in the proposed annual budget; (e) order that there is to be no spending, or reduced or increased spending, on a particular item in the proposed annual budget; (f) order that there is to be spending of a stated amount on an item that does not appear in the proposed annual budget; (g) order that the spending is to be as stated in the order; (h) determine liability for expenses (if any) incurred from the beginning of the financial year to which the proposed annual budget relates until the day when an order under paragraph (d), (e), (f) or (g) is made; (i) make any other order prescribed by regulation.

(3) Subsection (4) applies if— (a) the operator makes an application under this section; and (b) the ACAT does not, before the beginning of the financial year to which the proposed annual budget relates, make an order that gives rise to an approved annual budget. (4) The operator may spend money received for recurrent charges to meet the reasonable and necessary costs of operating the retirement village until the ACAT makes an order under subsection (2). (5) In deciding an application made by the operator, the ACAT may— (a) review any spending by the operator under subsection (4); and (b) make an order that the operator is liable for so much of that spending it considers was not reasonable or necessary. (6) If the ACAT gives a direction under subsection (2) (b) or makes a recommendation for further action under subsection (2) (c), it may— (a) adjourn the proceeding for a report from the parties; and (b) take further action under subsection (2) it considers necessary when the proceeding resumes. (7) In deciding an application, the ACAT may consider the following: (a) the reasonable cost of services provided (or proposed to be provided) in the retirement village; (b) the need for the services to be provided in the retirement village; (c) any other matter it considers relevant. (8) If the ACAT receives an application under this section at the same time it receives, or is considering, an application under section 154 (ACAT orders—recurrent charges) in relation to recurrent charges payable at the same retirement village, it must make a decision under this section before making a decision under section 154.