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.