Division 4103 Operator to pay certain recurrent charges
(1) The operator of a retirement village must pay, in relation to any new residential premises in the village, an amount equivalent to the recurrent charges for general services payable under a village contract in respect of comparable (or the most nearly comparable) premises in the village.(2) In this section, new residential premises means residential premises that are not and have never been the subject of a village contract.
104 Variation of recurrent charges
(1) A village contract may provide that any recurrent charges payable under it:(a) are to be varied at specified intervals (or on specified dates) according to a fixed formula (for example, in proportion to variations in the Consumer Price Index), or(b) may be varied otherwise than according to a fixed formula.(2) If a village contract provides for any recurrent charges payable under it to be varied otherwise than according to a fixed formula, the recurrent charges must not be varied more than once in any 12 month period. Any second or subsequent purported variation within that 12 month period is of no effect.(3) A village contract must not provide for more than one method of variation of the recurrent charges payable under it.(4) If a village contract provides for more than one method of variation of recurrent charges in contravention of subsection (3), the method that results in the lowest increase in recurrent charges is the applicable method.
105 Recurrent charges varied by fixed formula
(1) If a village contract provides that recurrent charges are to be varied according to a fixed formula, the operator of the village must give at least 14 days’ written notice of the variation to the resident concerned.(2) The notice must specify:(a) the amount of the new recurrent charges, and(b) the date from which the new recurrent charges are payable, and(c) such other information as may be prescribed by the regulations.(3) A resident of the retirement village who is a party to a village contract referred to in subsection (1) is not required to pay any increase in his or her recurrent charges until notice of the increase is given as required by this section.(4) The operator of a retirement village must not increase (or attempt to increase) recurrent charges that are to be varied according to a fixed formula otherwise than in accordance with that formula and this section.Maximum penalty: 50 penalty units.
105A Recurrent charges varied otherwise than by a fixed formula—not exceeding variation in CPI
(1) This section applies to the variation of recurrent charges payable under a village contract if:(a) the contract provides that recurrent charges are to be varied otherwise than in accordance with a fixed formula, and(b) the variation does not exceed the variation that would result from the recurrent charges being increased in proportion to the variation in the Consumer Price Index (since the recurrent charges were last varied) and rounded to the nearest whole dollar.(2) In relation to a proposed variation in recurrent charges, the variation in the Consumer Price Index since the recurrent charges were last varied is taken to be the difference between:(a) the Consumer Price Index published most recently before those charges were last varied, and(b) the Consumer Price Index published most recently before the written notice of the proposed variation is given.(3) The operator of a retirement village must give at least 14 days’ written notice of any proposed variation to the recurrent charges.(4) The notice must specify:(a) the amount of the new recurrent charges, and(b) the date from which the new recurrent charges are payable, and(c) such other information as may be prescribed by the regulations.(5) A resident of a retirement village is not required to pay any increase in his or her recurrent charges to which this section applies until notice of the increase is given as required by this section.(6) A notice given under this section may be cancelled by a later notice or a later notice may provide for a lesser increase than the increase specified in the earlier notice.
106 Recurrent charges varied otherwise than by fixed formula—exceeding variation in CPI
(1) This section applies to a variation of recurrent charges payable under a village contract if:(a) the contract provides that recurrent charges are to be varied otherwise than in accordance with a fixed formula, and(b) the variation exceeds the variation that would result from the recurrent charges being increased in proportion to the variation in the Consumer Price Index (since the recurrent charges were last varied) and rounded to the nearest whole dollar.Note. A provision to the effect that recurrent charges may be varied by “up to” a certain percentage is an example of such a provision.(1A) In relation to a proposed variation in recurrent charges, the variation in the Consumer Price Index since the recurrent charges were last varied is taken to be the difference between:(a) the Consumer Price Index published most recently before those charges were last varied, and(b) the Consumer Price Index published most recently before the written notice of the proposed variation is given.(1B) The operator of a retirement village must give the resident concerned notice in accordance with this section at least 60 days before any proposed variation.(2) The notice must:(a) specify the amount of the proposed recurrent charges, and(b) specify the date from which it is intended that the proposed recurrent charges are to be payable, and(c) contain a brief explanation of the reasons for the proposed variation exceeding the variation in the Consumer Price Index or the prescribed rate or amount (if any), and(c1) include details of any action taken to minimise the proposed variation in recurrent charges, and(d) state that the variation will not take effect unless the residents concerned consent to the variation or the Tribunal orders that it take effect, and(e) contain such other information as may be prescribed by the regulations.(3) A notice given under this section may be cancelled by a later notice or a later notice may provide for a lesser increase than the increase specified in the earlier notice.(4) For the purposes of the date from which the proposed variation is to take effect, a later notice is taken to have been given on the date on which the earlier notice was given.(5) However, the period of 30 days specified in section 107 (2) commences, in relation to a later notice, on the date on which the later notice is actually given.(6) An operator who is the operator of more than one retirement village must deal with each village separately under this section.(7) (Repealed)Maximum penalty: 50 penalty units.
106A Recurrent charges varied otherwise than by fixed formula to be increased in accordance with Act
The operator of a retirement village must not increase (or attempt to increase) recurrent charges that are to be varied otherwise than according to a fixed formula if the increase would be:(a) beyond any upper limit specified in the relevant village contract, or(b) otherwise than in accordance with section 105A or 106.Maximum penalty: 50 penalty units.
107 Residents’ consent to variation
(1) A variation does not take effect under section 106 unless:(a) the residents whose recurrent charges will be affected by the variation consent to the variation, or(b) the Tribunal orders under section 108 that the variation take effect.(2) The residents concerned must, within 30 days after receiving a notice under section 106:(a) meet, consider and vote on the proposed variation, and(b) advise the operator that they consent, or do not consent (as the case may be) to the variation.(3) If the operator is not advised as required by subsection (2) (b), the residents are taken to have refused consent to the variation.(4) The operator must provide such information in relation to the proposed variation as the Residents Committee (or, if there is no Residents Committee elected for the village, any resident) reasonably requests for the purpose of deciding whether consent should be given to the variation.(5) If the operator of a retirement village fails to provide information requested under subsection (4) within the time prescribed by the regulations, the Residents Committee (or a resident of the retirement village) may apply to the Tribunal for (and the Tribunal may make) an order requiring the operator to provide the residents with the information specified in the order.(6) The regulations may prescribe:(a) the period within which information requested under subsection (4) must be provided, and(b) information that the operator of a retirement village is not required to provide despite a request under subsection (4).
(1) An operator of a retirement village may apply to the Tribunal for (and the Tribunal may make) an order in respect of a proposed variation of recurrent charges if:(a) the consent of the residents of the retirement village is required before the proposed variation can take effect, and(b) the residents do not consent to the proposed variation under section 107.(2) The Tribunal may, on application by the operator:(a) order that the proposed variation is to take effect, with or without modification, or(b) order that the proposed variation is not to take effect.(3) An order under subsection (2) (a) may:(a) specify the date from which the variation is to take effect (which may be a date other than the date specified by the operator in the notice given under section 106), and(b) order that the recurrent charges are not to be further varied for a specified period, being a period that does not exceed 12 months.(4) In determining an application made under this section, the Tribunal may have regard to the following:(a) the general market level of recurrent charges paid at similar retirement villages in the locality of the retirement village concerned or a similar locality,(b) the level and cost of services and facilities provided for in the proposed annual budget or approved annual budget (as the case may be),(c) any proposed variations (including additions) to those services and facilities, being variations 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 variations of the recurrent charges,(f) if the retirement village is subject to a community land scheme or strata scheme—the amounts of levies and other contributions payable by the residents under the Community Land Management Act 1989 or the Strata Schemes Management Act 1996,(g) any other relevant matter.
109 Tribunal may order refund of recurrent charges in certain circumstances
(1) A resident of a retirement village may apply to the Tribunal 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) The Tribunal may make an order directing a refund of all such overpaid recurrent charges.(3) An application under this section must be lodged no later than 12 months after the increase in the charges came into effect.
110 Receipts for recurrent charges
(1) If payment of recurrent charges in a retirement village is made in person, any person who receives the payment must, without delay, give to the person making the payment a receipt for the payment.Maximum penalty: 5 penalty units.
(2) If the payment is not made in person, the operator of the village must, as soon as practicable after receipt of the payment, prepare or cause to be prepared a receipt for the payment and make the receipt available for collection by the resident concerned or give it to the resident.Maximum penalty: 5 penalty units.
(3) A receipt for payment of recurrent charges is not a receipt for the purposes of this section unless it includes the following particulars:(a) the name of the operator,(b) the name of the resident paying the recurrent charges (or on whose behalf they are paid),(c) the address of the residential premises concerned,(d) the period for which the recurrent charge is paid,(e) the date on which the payment is received,(f) the amount of the payment.(4) This section does not apply to recurrent charges paid in accordance with an agreement between the resident and the operator into an account at an authorised deposit-taking institution nominated by the operator.
111 Abatement of recurrent charges
(1) If residential premises in a retirement village are, otherwise than as a result of a breach of a village contract, destroyed or rendered wholly or partly uninhabitable or cease to be lawfully usable for the purpose of a residence or are appropriated or acquired by any authority by compulsory process, the recurrent charges payable by the resident of the premises abate accordingly.Note. The operator or the resident may also seek to terminate the residence contract in these circumstances (unless the resident is a registered interest holder (other than a person referred to in section 7 (1) (c)) in respect of the residential premises concerned)—see section 132.(2) If the operator and the resident do not agree that the recurrent charges should abate under this section (or do not agree on the extent to which they should abate), either party may apply to the Tribunal for (and the Tribunal may make) an order declaring that the recurrent charges:(a) are not to abate, or(b) are to abate to the extent specified in the order from the date so specified.