44Making good of deficit—the Act, s 120C(3)(c)

44 Making good of deficit—the Act, s 120C(3)(c)

44 Making good of deficit—the Act, s 120C(3)(c)

(1) The operator of a retirement village may carry forward the part of a deficit that is caused by—

(a) the maintenance, not the replacement, of an item of capital if the maintenance was to rectify a matter set out in the Act, section 92(2), or

(b) an increase in the cost of one or more of the following—

(i) utilities, other than telephone services,

(ii) statutory charges, including rates and taxes,

(iii) wages and salaries increased under an award or industrial agreement,

(iv) a workers compensation premium payable by the operator for insurance under the Workers Compensation Act 1987,

(v) public liability insurance.

(2) Despite subsection (1)(b)(iv), an operator must not carry forward more than 50% of an increase in the experience premium component of the operator’s insurance premium under the Workers Compensation Act 1987.