2011
THE LEGISLATIVE ASSEMBLY
FOR THE AUSTRALIAN CAPITAL TERRITORY

(As presented)
(Ms Mary Porter)
Retirement Villages Bill 2011

Contents
	Page
	
Part 1	Preliminary
	1	Name of Act	2
	2	Commencement	2
	3	Dictionary	3
	4	Notes	3
	5	Offences against Act—application of Criminal Code etc	3
Part 2	Objects and important concepts
	6	Objects of Act	4
	7	Meaning of retirement village	5
	8	Meaning of retirement village land	5
	9	Meaning of scheme	5
	10	Meaning of resident	6
	11	Meaning of scheme operator	6
Part 3	Registering retirement village schemes
Division 3.1	Registration
	12	Application for registration	7
	13	Decision on registration application	8
	14	Power to ask for information etc from applicants and others	9
Division 3.2	Transferring registration
	15	Transferring registration	10
Division 3.3	Ending registration
	16	When registration ends	13
	17	Cancelling registration—scheme no longer operating	13
	18	Cancelling registration—requested by scheme operator	14
Part 4	Residence contracts
Division 4.1	Residence contracts generally
	19	Purpose—pt 4	17
	20	Meaning of residence contract	17
	21	Form and content of residence contracts	19
	22	Offence—noncompliant residence contracts	21
	23	Residence contracts—guidelines	21
	24	Dealing with inconsistencies between Act, residence contracts and public information documents	21
Division 4.2	Entering into residence contracts
	25	Offence—entering into residence contracts if scheme not registered	22
	26	Residence contracts not invalid etc because scheme not registered	22
	27	Offences—failure to give copies of residence contracts to other parties	22
Division 4.3	Amending residence contracts
	28	Amending individual residence contracts	24
	29	Amending all residence contracts for retirement village	24
Division 4.4	Rescinding residence contracts during cooling‑off periods for residence contracts
	30	Meaning of cooling-off period	25
	31	Offence—failure to notify end of cooling-off periods in certain circumstances	25
	32	Residence contract may be rescinded during cooling-off period	26
Division 4.5	Dealing with property assigned during cooling-off period
	33	Meaning of authorised person—div 4.5	26
	34	Offences—failure to deal with instruments assigning property during cooling-off period	26
	35	Offences—reassigning property acquired during cooling‑off period	27
	36	Costs of reassigning property	28
	37	Scheme operator to compensate assignor in certain circumstances	28
Division 4.6	Dealing with ingoing contributions
	38	Meaning of ingoing contribution	29
	39	Meaning of trustee—div 4.6	30
	40	Offence—failure to give ingoing contributions to trustee	30
	41	Offences—failure to hold and repay ingoing contributions	31
	42	Receiving ingoing contributions after events	32
	43	Offence—failure to give notice of dispute	32
	44	Offence—failure to hold disputed amounts in trust	32
	45	Offence—failure to repay trust amounts after residence contracts rescinded during cooling-off period	33
	46	Unpaid amounts recoverable as debts	33
Division 4.7	Ending residence contracts during settling-in period
	47	Meaning of settling-in period	34
	48	Residence contract may be ended during settling-in period	34
	49	Amounts payable by residents if residence contract ended during settling-in period	34
Division 4.8	Ending residence contracts in other circumstances
	50	Meaning of resident—div 4.8	35
	51	Ending residence contracts—div 4.8—effect	35
	52	Ending residence contracts—residents	36
	53	Ending residence contracts—scheme operators	36
	54	Ending residence contracts—resident’s address unknown	38
	55	Residence contracts automatically end on death	38
Division 4.9	Exit entitlements
	56	Residents may request estimates of exit entitlements	39
	57	Offence—failure to give written estimates	39
	58	Offence—failure to refund ingoing contribution if contract ended where scheme not registered	40
	59	Offence—failure to pay exit entitlements to residents who own units	40
	60	Offence—failure to pay exit entitlement to residents who do not own units	41
	61	Offence—failure to give statement about exit entitlement and liabilities	41
	62	Orders for payment of exit entitlements on sale of units	42
Division 4.10	Enforcing residence contracts
	63	Enforcing residence contracts	43
	64	No liability for breach of residence contracts	44
Part 5	Other documents relating to retirement villages
Division 5.1	General inquiry documents and public information documents
	65	Meaning of public information document	45
	66	Definitions—div 5.1	45
	67	Form and content of general inquiry documents	49
	68	Offence—failure to give copy of general inquiry document	49
	69	Form and content of public information documents	50
	70	Offences—failure to give public information document to prospective resident	51
	71	Offences—failure to notify inaccuracies in public information documents	52
	72	Offence—failure to correct inaccuracies in public information documents	54
Division 5.2	Other matters
	73	Access by residents to certain documents	55
	74	Offence—failure to comply with requests for access	55
	75	Residential care service information	56
Part 6	Dealing with accommodation units
Division 6.1	Waiting list fees
	76	Meaning of waiting list fee—div 6.1	57
	77	Offence—requiring or accepting waiting list fees	57
	78	Offences—failure to repay waiting list fees	58
	79	Orders for repayment of waiting list fees	59
Division 6.2	Condition of accommodation units
	80	Meaning of reinstatement work	59
	81	Definitions—div 6.2	59
	82	Condition reports	59
	83	Condition on vacating units	60
	84	Renovations and alteration of fixtures or fittings	61
Division 6.3	Reselling accommodation units
	85	Definitions—div 6.3	62
	86	Appointing selling agents	63
	87	Setting asking price of accommodation units	63
	88	Selling accommodation units	64
	89	Buyers and scheme operators to enter into residence contracts	65
	90	Offences—failure to give notice about sale of units	65
Division 6.4	Relatives in accommodation units
	91	Relatives may continue to live in units	66
	92	Relatives may enter into residence contracts	67
Part 7	Operation and management of retirement villages
Division 7.1	Scheme operators
	93	Definitions—div 7.1	68
	94	Offence—operating retirement village schemes etc while insolvent	68
	95	Offence—operating retirement village schemes etc with relevant conviction	69
Division 7.2	Operating etc unregistered retirement village schemes
	96	Offence—operating etc unregistered retirement villages	70
	97	ACAT orders to stop operating etc unregistered retirement villages	71
	98	Orders appointing people to control operations of retirement villages	71
Division 7.3	Exercise of powers of attorney by scheme operators
	99	Offence—exercising powers of attorney	72
Division 7.4	Other matters
	100	Consultation about retirement village redevelopment	72
Part 8	Financial management of retirement villages
Division 8.1	Capital improvement
	101	Meaning of capital improvement	74
	102	Responsibility for capital improvement of retirement villages	74
	103	Responsibility of residents for capital improvement—accommodation units	74
	104	Responsibility of residents for capital improvement—retirement villages	75
	105	Responsibility of former residents for capital improvement	75
	106	Quotations for capital improvement	76
	107	Payment of capital improvement	77
	108	Offences—dealing with amounts received for capital improvement	77
Division 8.2	Capital replacement fund
	109	Meaning of capital replacement fund contribution	78
	110	Meaning of capital replacement fund amount—div 8.2	78
	111	Capital replacement funds	78
	112	Offence—failure to open and keep accounts	79
	113	Payments into capital replacement funds	79
	114	Offences—payments into capital replacement funds	79
	115	Offences—misuse of capital replacement fund amounts	80
	116	Charge created over capital replacement funds	80
	117	Capital replacement reserve—reports	81
	118	Capital replacement reserve reports—independent quantity surveyor report not needed in certain circumstances	82
	119	Offence—failure to obtain reports	82
	120	Capital replacement reserve—amounts in reserve	83
	121	Capital replacement fund budgets	84
	122	Residents liable for replacing certain capital items	85
	123	Residents may carry out urgent work	85
Division 8.3	Maintenance reserve fund
	124	Meaning of maintenance reserve fund contribution	86
	125	Meaning of maintenance reserve fund amount—div 8.3	87
	126	Maintenance reserve funds	87
	127	Offence—failure to open and keep accounts	87
	128	Payments into maintenance reserve funds	87
	129	Offences—payments into maintenance reserve funds	88
	130	Offences—misuse of maintenance reserve fund amounts	88
	131	Charge created over maintenance reserve funds	89
	132	Maintenance reserve—reports	89
	133	Maintenance reserve reports—independent quantity surveyor report not needed in certain circumstances	90
	134	Offence—failure to obtain reports	91
	135	Maintenance reserve—amounts in reserve	91
	136	Maintenance reserve fund budgets	92
Division 8.4	Services charges
	137	Meaning of general services charge budget	94
	138	Meaning of general services charge—div 8.4	94
	139	General services charge budget	94
	140	Offences—working out and paying general services charge	95
	141	Responsibility of residents for general services charge	96
	142	Working out and paying general services charge for former residents	96
	143	Offence—no interest on accrued amounts	97
	144	Offence—failure to pay general services charge for unsold right to live in accommodation units	98
	145	Scheme operators paying general services charge	98
	146	Offence—increasing general services charge by more than CPI	99
	147	Cost-effective alternatives for services	101
	148	No liability for failing to supply goods or services	101
	149	Supplying new general services	101
	150	Quotations for new services	102
	151	Charging residents for personal services during temporary absences	103
	152	Offences—charging former residents for personal services	103
Division 8.5	Insurance
	153	Meaning of building—div 8.5	104
	154	Building insurance by scheme operators	105
	155	Public liability insurance by scheme operators	107
	156	Application of insurance money by owners corporation	107
	157	Insurance information	108
	158	Additional insurance—scheme operator	108
	159	Additional insurance—residents	108
Division 8.6	Financial accounts and statements
	160	Offence—scheme operator must keep separate accounts for capital replacement fund and maintenance reserve fund	109
	161	Offences—failure to give quarterly financial statements etc	109
	162	Quarterly financial statements need not be given to residents in certain circumstances	110
	163	Preparing annual financial statements	111
	164	Annual financial statements need not be audited in certain circumstances	112
	165	Offences—failure to give annual financial statements	113
	166	Classification of expenditure	113
Part 9	Charges created over retirement village land to protect residents’ rights
Division 9.1	Preliminary
	167	Meaning of resident—pt 9	115
Division 9.2	Creating charges over retirement village land
	168	Creating charges over retirement village land	115
	169	Charges extend to new land	116
	170	Offence—failure to give notice of new land	117
	171	Effect of charges	117
	172	Priority of charges	118
Division 9.3	Enforcing charges over land
	173	Enforcing charges	118
	174	Orders court may make	119
	175	Effect of court orders	120
Division 9.4	Extinguishing and releasing charges over land
	176	Extinguishing charges	121
	177	Scheme operator may ask for release of charge if land stops being retirement village land	121
	178	Commissioner for fair trading to release charge	123
Part 10	Residents participation
Division 10.1	Residents committees
	179	Establishing residents committees	124
	180	Operating residents committees	124
	181	Offence—preventing etc residents committees	125
	182	Scheme operator to provide administrative assistance	125
	183	Meetings between residents committees and scheme operators	126
	184	Retirement villages without residents committees	126
Division 10.2	Meetings of residents committees
	185	Meaning of decision—div 10.2	127
	186	Decision-making at meetings	127
	187	Ordinary resolutions	127
	188	Special resolutions	127
	189	Who may vote	128
	190	Secret ballot	128
	191	Proxy votes	129
	192	Postal votes	129
	193	Offences—postal votes	129
	194	Quorum at meetings	130
	195	Notice of reduced quorum decisions and adjournments	131
	196	Reduced quorum decisions—effect	131
Part 11	Retirement village disputes
Division 11.1	General
	197	Meaning of retirement village dispute	133
	198	Applications to ACAT	133
	199	Preliminary negotiations	134
Division 11.2	Mediation
	200	Referral to mediation	135
	201	Parties attendance at mediation conferences	135
	202	Representation at mediation conferences	135
	203	People who may attend mediation conferences	136
	204	Mediation agreements	136
Division 11.3	ACAT orders
	205	ACAT orders generally	136
	206	ACAT orders—removal from retirement village etc	137
	207	ACAT orders—false or misleading documents	138
	208	ACAT orders—payment of exit entitlement	138
Part 12	Retirement village scheme register
	209	Retirement village scheme register	140
	210	Correcting retirement village scheme register	141
	211	Public access to retirement village scheme register	141
Part 13	Notification and review of decisions
	212	Meaning of reviewable decision—pt 13	142
	213	Reviewable decision notices	142
	214	Applications for review	142
Part 14	Miscellaneous
	215	Review of Act	143
	216	Determination of fees	143
	217	Approved forms	143
	218	Regulation-making power	144
	219	Legislation amended—sch 2	144
	220	Legislation repealed	144
Part 15	Transitional
	500	Definitions—pt 15	145
	501	Status of existing contracts	145
	502	Noncompliant residence contracts	145
	503	Inconsistencies between Act and existing contracts	146
	504	Parties may agree to apply Act to existing contract	146
	505	Offence—failure to give public information documents to existing residents	146
	506	Cooling-off periods	147
	507	Settling-in periods	147
	508	Waiting list fees	147
	509	Existing disputes	147
	510	Transitional regulations	148
	511	Expiry—pt 15	148
Schedule 1	Reviewable decisions	149
Schedule 2	Consequential amendments	150
Part 2.1	Agents Act 2003	150
Part 2.2	Civil Law (Sale of Residential Property) Act 2003	150
Part 2.3	Discrimination Act 1991	151
Part 2.4	Fair Trading (Australian Consumer Law) Act 1992	151
Part 2.5	Residential Tenancies Act 1997	151
Dictionary		152

2011
THE LEGISLATIVE ASSEMBLY
FOR THE AUSTRALIAN CAPITAL TERRITORY

(As presented)
(Ms Mary Porter)
Retirement Villages Bill 2011

A Bill for
An Act to regulate retirement villages, and for other purposes

    

The Legislative Assembly for the Australian Capital Territory enacts as follows:

Part 1	Preliminary
1	Name of Act
This Act is the Retirement Villages Act 2011.
2	Commencement
	(1)	This Act commences on a day fixed by the Minister by written notice.
Note 1	The naming and commencement provisions automatically commence on the notification day (see Legislation Act, s 75 (1)).
Note 2	A single day or time may be fixed, or different days or times may be fixed, for the commencement of different provisions (see Legislation Act, s 77 (1)).
	(2)	If this Act (other than part 9) has not commenced within 12 months beginning on its notification day, it automatically commences on the first day after that period.
	(3)	If part 9 (Charges created over retirement village land to protect residents’ rights) has not commenced within 30 months beginning on this Act’s notification day, it automatically commences on the first day after that period.
	(4)	The Legislation Act, section 79 (Automatic commencement of postponed law) does not apply to this Act.
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 ‘insolvent under administration, for division 7.1 (Scheme operators)—see the Corporations Act, section 9.’ means that the term ‘insolvent under administration’ is defined in that section 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
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.
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.

Part 2	Objects and important concepts
6	Objects of Act
	(1)	The main objects of this Act are—
	(a)	to promote consumer protection and fair trading practices in relation to operating retirement villages and supplying services to residents by—
	(i)	declaring particular rights and obligations of residents and scheme operators; and
	(ii)	facilitating the disclosure of information to prospective residents of retirement villages to ensure the rights and obligations of residents and scheme operators may be easily understood; and
	(b)	to encourage the continued growth and viability of the retirement village industry in the ACT.
	(2)	The following are also objects of this Act:
	(a)	to encourage the adoption of best practice standards by the retirement village industry;
	(b)	to provide a clear regulatory framework to ensure certainty for the retirement village industry in planning for future expansion;
	(c)	to facilitate participation by residents, who want to be involved, in the affairs of retirement villages;
	(d)	to provide for processes for resolving disputes between residents and scheme operators.
7	Meaning of retirement village
In this Act:
retirement village means premises where older members of the community or retired people live, or will live, in independent living units or serviced units, under a scheme for a retirement village.
8	Meaning of retirement village land
In this Act:
retirement village land, for a retirement village—
	(a)	means land that is, or will be, used for a retirement village; and
	(b)	if a units plans is registered in relation to the retirement village—includes the land identified as units, unit subsidiaries and common property in the plan.
9	Meaning of scheme
In this Act:
scheme, for a retirement village, means a scheme under which a person may—
	(a)	enter into a residence contract with the scheme operator for the retirement village; and
	(b)	on payment of an ingoing contribution, acquire personally or for someone else a right to live in the retirement village, however the right accrues; and
	(c)	on payment of the relevant charge, acquire personally or for someone else a right to receive 1 or more services in relation to the retirement village.  
10	Meaning of resident
In this Act:
resident, of a retirement village, means a person who has a right under a residence contract to—
	(a)	live in the village; and 
	(b)	receive 1 or more services in relation to the village.
11	Meaning of scheme operator
In this Act:
scheme operator, for a retirement village, means a person who, alone or with someone else, controls, or purports to control, the operation of a scheme for the retirement village.

Part 3	Registering retirement village schemes
Division 3.1	Registration
12	Application for registration
	(1)	A person (the applicant) may apply to the commissioner for fair trading to register a scheme for a retirement village.
Note 1	If a form is approved under s 217 for the application, the form must be used.
Note 2	A fee may be determined under s 216 for this provision.
	(2)	The applicant must be—
	(a)	the person who, alone or with someone else, proposes to control the operation of the scheme for the retirement village; and
	(b)	if the applicant is an individual—at least 18 years old.
	(3)	The application must be accompanied by—
	(a)	details of the following:
	(i)	the land on which the retirement village buildings and facilities are, or will be, constructed; 
	(ii)	the accommodation units and communal facilities that the scheme operator undertakes will be available for the retirement village when the scheme is registered; 
	(iii)	the accommodation units and communal facilities that the scheme operator intends to make available for the retirement village when the scheme is registered, depending on the sales activity, finance availability, or market conditions for the village;
	(iv)	other matters in relation to the scheme prescribed by regulation;  and
	(b)	a copy of the public information document in relation to the scheme.
Note 1	Public information document, in relation to a scheme for a retirement village—see s 65.
Note 2	Information provided with an application is included on the retirement villages scheme register (see s 209).
13	Decision on registration application
	(1)	If a person applies to register a scheme for a retirement village under section 12, the commissioner for fair trading must—
	(a)	register the scheme; or 
	(b)	refuse to register the scheme.
Note	A decision to refuse to register a scheme is a reviewable decision (see pt 13). 
	(2)	The commissioner for fair trading may register the scheme only if satisfied that—
	(a)	the application complies with section 12; and
	(b)	the applicant is not prohibited from operating a scheme for a retirement village under—
	(i)	section 94 (Offence—operating retirement village schemes etc while insolvent); or 
	(ii)	section 95 (Offence—operating retirement village schemes etc with relevant conviction).
	(3)	If the commissioner for fair trading registers the scheme, the commissioner must give the applicant a registration certificate stating the day the scheme was registered.
14	Power to ask for information etc from applicants and others
	(1)	The commissioner for fair trading may, in writing, ask a person (the applicant) who applies to register a scheme for a retirement village to do 1 or more of the following: 
	(a)	give the commissioner stated information relevant to the application;
	(b)	produce for the commissioner’s inspection a stated document relevant to the application;
	(c)	allow the commissioner to examine, copy or take extracts from a stated document relevant to the application (including a document produced for the commissioner’s inspection under paragraph (b));
	(d)	confirm, by statutory declaration or otherwise, information given or a document produced to the commissioner;
	(e)	authorise a stated person to do anything mentioned in paragraphs (a) to (d);
	(f)	give the commissioner any authority or consent that the commissioner asks for to allow the commissioner to obtain from other people information (including financial and other confidential information) that is—
	(i)	about the applicant; and
	(ii)	relevant to—
	(A)	the consideration of the application; or
	(B)	a consideration of whether the applicant continues to be a suitable person to operate a scheme for a retirement village.
Example—par (a)
ask the applicant to give information by preparing a document in a stated way (including as a statutory declaration) or by completing a document provided by the commissioner for fair trading
Example—par (b)
a statement supplied by a police officer about the applicant’s criminal history (if any)
Example—par (f)
ask the applicant to authorise the applicant’s accountant, or a former close associate, to give the commissioner for fair trading stated information or documents about the applicant.
Note 1	The Statutory Declarations Act 1959 (Cwlth) applies to the making of statutory declarations under ACT laws.
Note 2	The Criminal Code includes an offence for  making false statements in statutory declarations (see s 336A).
Note 3	An example is part of the Act, is not exhaustive and may extend, but does not limit, the meaning of the provision in which it appears (see Legislation Act, s 126 and s 132).
	(2)	A request under subsection (1) must state a reasonable time within which the request must be complied with.
Division 3.2	Transferring registration
15	Transferring registration
	(1)	This section applies if a scheme operator for a retirement village proposes to transfer control of the operation of the scheme for the village to another person.
	(2)	The scheme operator must apply in writing to the commissioner for fair trading to transfer the registration of the scheme for the retirement village.
	(3)	 The scheme operator must also—
	(a)	give each resident of the retirement village a written notice stating—
	(i)	that the operator has asked the commissioner for fair trading to transfer the registration of the scheme for the village; and
	(ii)	who the operator proposes to transfer the registration to; and 
	(iii)	how the resident will be affected if the registration is transferred; and
	(iv)	that the resident may object to the transfer within 60 days after receiving the notice by giving written notice of the objection to the commissioner for fair trading; and 
	(b)	give the commissioner for fair trading—
	(i)	a statutory declaration made by the scheme operator stating the facts of the operator’s compliance with paragraph (a); and
	(ii)	a copy of the notice given to residents under paragraph (a).
Note 1	The Statutory Declarations Act 1959 (Cwlth) applies to the making of statutory declarations under ACT laws.
Note 2	The Criminal Code includes an offence for  making false statements in statutory declarations (see s 336A).
	(4)	On application, the commissioner for fair trading may—
	(a)	transfer the registration of the scheme for the retirement village to the person named in the application; or
	(b)	refuse to transfer the registration of the scheme.
Note	A decision to refuse to transfer the registration of a scheme for a retirement village is a reviewable decision (see pt 13).
	(5)	However, the commissioner for fair trading may transfer the registration of a scheme for a retirement village only if—
	(a)	the commissioner is satisfied that—
	(i)	the scheme operator for the village has complied with subsection (2); and
	(ii)	the person to whom the scheme is to be transferred is—
	(A)	at least 18 years old; and
	(B)	not prohibited from operating a scheme for a retirement village under section 94 (Offence—operating retirement village schemes etc while insolvent); or 
	(C)	not prohibited from operating a scheme for a retirement village under section 95 (Offence—operating retirement village schemes etc with relevant conviction); and
	(iii)	transferring the registration of the scheme is appropriate, having regard to the objections, if any, made under subsection (3).
	(6)	If the commissioner for fair trading transfers the registration of a scheme for a retirement village, the commissioner must record the transfer in the retirement village scheme register.
	(7)	In this section:
resident includes a former resident who has not received an exit entitlement to which the former resident is entitled under the former resident’s residence contract.
Division 3.3	Ending registration
16	When registration ends
The registration of a scheme for a retirement village ends if the registration is cancelled under section 17 or section 18.
17	Cancelling registration—scheme no longer operating
	(1)	The commissioner for fair trading may cancel the registration of a scheme for a retirement village if the commissioner believes on reasonable grounds that the scheme is no longer operating.
Note	A decision to cancel the registration of a scheme is a reviewable decision (see pt 13).
	(2)	However, the commissioner for fair trading must not cancel the registration of a scheme for a retirement village unless the commissioner—
	(a)	gives the scheme operator for the village written notice (an intended cancellation notice) of the commissioner’s intention to cancel the registration; and
	(b)	takes into consideration any response received from the scheme operator in accordance with the notice.
	(3)	Cancellation of the registration of a scheme for a retirement village under this section takes effect—
	(a)	21 days after the day the intended cancellation notice is given to the scheme operator for the retirement village; or
	(b)	if the written notice states a later date—on the stated date.
	(4)	An intended cancellation notice must—
	(a)	state that the commissioner for fair trading intends to cancel the registration of the scheme; and
	(b)	explain why the commissioner for fair trading intends to cancel the registration of the scheme; and
	(c)	state that the scheme operator may, within 18 days after the day the scheme operator is given the notice, give a written response to the commissioner for fair trading about the matters in the notice.
Note	For how documents may be served, see the Legislation Act, pt 19.5.
18	Cancelling registration—requested by scheme operator
	(1)	This section applies if the scheme operator for a retirement village stops operating or proposes to stop operating the scheme for the village.
	(2)	The scheme operator must apply in writing to the commissioner for fair trading to cancel the registration of the scheme for the retirement village.
	(3)	The scheme operator must also—
	(a)	give each resident of the retirement village a written notice stating—
	(i)	that the operator has asked the commissioner for fair trading to cancel the registration of the scheme for the village; and
	(ii)	if there is a charge over the retirement village land—whether or not the operator has asked the commissioner for fair trading to release the charge over the retirement village land under section 177 (Scheme operator may ask for release of charge if land stops being retirement village land); and
	(iii)	how the resident will be affected if the registration is cancelled; and
	(iv)	that the resident may object to the cancellation within 60 days after receiving the notice by giving written notice of the objection to the commissioner for fair trading; and 
	(b)	give the commissioner for fair trading—
	(i)	a statutory declaration made by the scheme operator stating the facts of the operator’s compliance with paragraph (a); and
	(ii)	a copy of the notice given to residents under paragraph (a).
Note 1	The Statutory Declarations Act 1959 (Cwlth) applies to the making of statutory declarations under ACT laws.
Note 2	The Criminal Code includes an offence for  making false statements in statutory declarations (see s 336A).
	(4)	On application, the commissioner for fair trading may—
	(a)	cancel the registration of the scheme for the retirement village; or
	(b)	refuse to cancel the registration of the scheme.
Note	A decision to refuse to cancel the registration of a scheme for a retirement village is a reviewable decision (see pt 13).
	(5)	However, the commissioner for fair trading may cancel the registration of a scheme for a retirement village only if—
	(a)	the commissioner is satisfied that—
	(i)	the scheme operator for the village has complied with subsection (2); and
	(ii)	cancelling the registration of the scheme is appropriate, having regard to the objections, if any, made under subsection (2); and
	(b)	if there is a charge over the retirement village land—the commissioner has released the charge.
	(6)	If the commissioner for fair trading cancels the registration of a scheme for a retirement village, the commissioner must record the cancellation in the retirement village scheme register.
	(7)	In this section:
resident includes a former resident who has not received an exit entitlement to which the former resident is entitled under the former resident’s residence contract.

Part 4	Residence contracts
Division 4.1	Residence contracts generally
19	Purpose—pt 4
	(1)	The purpose of this part is to state minimum requirements for residence contracts.
	(2)	Nothing in this part prevents a scheme operator for a retirement village and a resident of the retirement village agreeing (in a residence contract or otherwise) to conditions that are more beneficial to the resident than the provisions in this part.
20	Meaning of residence contract
	(1)	For this Act, a residence contract, in relation to a retirement village—
	(a)	means 1 or more written contracts entered into, or to be entered into, between a person and the scheme operator for the village about the matters mentioned in subsection (2); and
	(b)	includes—
	(i)	any other contract (an ancillary contract) between the person and the scheme operator if the ancillary contract depends on, or arises out of, the making of the residence contract or another ancillary contract; and
	(ii)	a public information document in relation to a scheme for a retirement village to which a residence contract relates.
	(2)	For subsection (1), a residence contract in relation to a retirement village must—
	(a)	either—
	(i)	give, or purport to give, a person an exclusive right to live in an accommodation unit in the village; or
	(ii)	place obligations on a person in relation to the person, or someone else, living in the village; and
	(b)	give, or purport to give, a person a right, in common with other residents in the village, to use and enjoy the village’s communal facilities; and
	(c)	contain or incorporate—
	(i)	a service agreement or an agreement to enter into a service agreement that includes a copy of the service agreement; and
	(ii)	if the residence contract includes an ancillary contract that is not signed when the residence contract is signed—an agreement to enter into the ancillary contract that includes a copy of the ancillary contract; and
	(d)	restrict the way in which, or the people to whom—
	(i)	the right to live in the village may be disposed of during the resident’s lifetime; and
	(ii)	if the resident owns an accommodation unit—the resident may dispose of the unit during the resident’s lifetime. 
	(3)	To remove any doubt, a residence contract does not include a contract for the sale of an accommodation unit.
Note	The sale of residential property is dealt with under the Civil Law (Sale of Residential Property) Act 2003.
	(4)	Without limiting the interests that a residence contract may be based on, a residence contract may be based on a leasehold interest in an accommodation unit.
	(5)	In this section:
service agreement means an agreement made between a person and a scheme operator for a retirement village under which general services or personal services are supplied for or to the person or someone else when the person or someone else becomes a resident of the village.
21	Form and content of residence contracts
A scheme operator for a retirement village must ensure each residence contract in relation to the village—
	(a)	includes the following information:
	(i)	the cooling-off period for a residence contract and the right of a resident to rescind the contract under section 32 (Residence contract may be rescinded during cooling‑off period) before the cooling-off period ends;
Note	Cooling-off period, for a residence contract in relation to a retirement village—see s 30.
	(ii)	the settling-in period and the right of a resident to end a residence contract under section 48 (Residence contract may be ended during settling-in period) before the settling‑in period ends; 
Note	Settling-in period, for a residence contract in relation to a retirement village—see s 47.
	(iii)	the ingoing contribution payable under the residence contract, or how the contribution is worked out;
	(iv)	the exit fee payable under the residence contract, or how the fee is worked out;
	(v)	a resident’s exit entitlement, or how the entitlement is worked out;
	(vi)	the services charges payable under the residence contract, or how the charges are worked out, and when the charges are payable;
	(vii)	the proportion of the ingoing contribution attributable to the capital reserve fund;
	(viii)	the proportion of the general services charge attributable to the maintenance reserve fund for the village; 
	(ix)	the insurance for the village, and any insurance for which a resident is responsible;
	(x)	any condition that a resident must meet before the resident can live in an accommodation unit in the village;
	(xi)	how a resident can deal with the resident’s right to live in an accommodation unit in the village;
	(xii)	if a resident owns an accommodation unit in the retirement village—how the resident can resell the unit;
	(xiii)	the resident’s entitlement to audited and unaudited financial statements for the village;
	(xiv)	the dispute resolution process under this Act for a retirement village dispute;
	(xv)	any charge created over retirement village land for the village or a fund of the village under this Act;
	(xvi)	the right of a resident and the scheme operator to end the residence contract; and
	(b)	otherwise complies with any requirements prescribed by regulation.
22	Offence—noncompliant residence contracts
A scheme operator for a retirement village commits an offence if a residence contract in relation to the village does not comply with section 21.
Maximum penalty:  100 penalty units.
23	Residence contracts—guidelines 
	(1)	The commissioner for fair trading may issue guidelines (terminology guidelines) setting out the terminology to be used in residence contracts. 
	(2)	A scheme operator must take all reasonable steps to ensure that the residence contract is drafted using terminology that is—
	(a)	consistent with the guidelines; and
	(b)	otherwise simple and consistent with the public information document.
	(3)	A terminology guideline is a notifiable instrument.
Note	A notifiable instrument must be notified under the Legislation Act.
24	Dealing with inconsistencies between Act, residence contracts and public information documents
	(1)	A provision of a residence contract in relation to a retirement village has no effect to the extent that it is inconsistent with this Act, or purports to restrict or exclude the operation of a provision of this Act. 
	(2)	Also, a provision of a residence contract in relation to a retirement village has no effect to the extent that it purports to restrict or exclude the operation of a public information document, or a provision of a public information document, in relation to a scheme for the village.
Division 4.2	Entering into residence contracts
25	Offence—entering into residence contracts if scheme not registered
A scheme operator for a retirement village commits an offence if—
	(a)	the operator enters into a residence contract in relation to the village with someone; and
	(b)	no scheme for the village is  registered.
Maximum penalty:  540 penalty units.
Note	It is also an offence to operate a retirement village if no scheme for the village is registered (see s 96).
26	Residence contracts not invalid etc because scheme not registered
	(1)	A residence contract is not invalid or unenforceable only because a scheme operator entered into the contract with someone (the other party) in contravention of section 25.
	(2)	However, the other party may end the residence contract under section 51 (Ending residence contracts—residents).
27	Offences—failure to give copies of residence contracts to other parties
	(1)	A scheme operator for a retirement village commits an offence if the operator—
	(a)	enters into a residence contract in relation to the village with someone; and
	(b)	does not, as soon as practicable after entering into the residence contract, give the person—
	(i)	a signed copy of the residence contract; and
	(ii)	a copy of the public information document in relation to a scheme for the village.
Maximum penalty:  100 penalty units.
	(2)	Subsection (1) (b) (ii) does not apply if the scheme operator gave the person a copy of the public information document under section 70 (Offences—failure to give public information document to prospective resident). 
Note	The scheme operator has an evidential burden in relation to the matters mentioned in s (2) (see Criminal Code, s 58).
	(3)	A scheme operator for a retirement village commits an offence if—
	(a)	the operator enters into a residence contract in relation to the village with someone; and
	(b)	the residence contract includes an ancillary contract that is not entered into at the time of the residence contract; and
	(c)	the operator does not, as soon as practicable after entering into the residence contract, give the person an unsigned copy of the ancillary contract.	
Maximum penalty:  100 penalty units.
	(4)	Subsection (3) does not apply if the terms of the ancillary contract are not known at the time the residence contract is entered into.
Note	The scheme operator has an evidential burden in relation to the matters mentioned in s (4) (see Criminal Code, s 58).
	(5)	In this section:
ancillary contract—see section 20 (1) (b). 
Division 4.3	Amending residence contracts
28	Amending individual residence contracts
	(1)	The parties to a residence contract may only amend the conditions of the contract by the written agreement of the parties.
	(2)	This section is subject to section 29.
29	Amending all residence contracts for retirement village
	(1)	The scheme operator for a retirement village may amend the conditions of residence contracts for all residents of a retirement village only if—
	(a)	the proposed amendments are no less beneficial than the existing conditions of the contracts; and
	(b)	the residents of the retirement village agree, by special resolution at a residents meeting, to the proposed amendments.
	(2)	The scheme operator for a retirement village must notify, in writing, each resident of the village of the proposed amendments to the residence contract within 7 days after the day the special resolution is made.
	(3)	The proposed amendments become effective within 14 days after the day the special resolution is made, or a later day proposed by the amendments.
Division 4.4	Rescinding residence contracts during cooling‑off periods for residence contracts
30	Meaning of cooling-off period
In this Act:
cooling-off period, for a residence contract in relation to a retirement village, means the period starting on the day the contract is signed by the parties to the contract and ending 21 days after—
	(a)	the day the contract is signed; or
	(b)	if the residence contract is subject to a later event happening—the day the later event happens.
Example—later event happening
another contract is to be entered into
Note	An example is part of the Act, is not exhaustive and may extend, but does not limit, the meaning of the provision in which it appears (see Legislation Act, s 126 and s 132).
31	Offence—failure to notify end of cooling-off periods in certain circumstances
A scheme operator for a retirement village commits an offence if—
	(a)	the cooling-off period for a residence contract for the retirement village starts on a day that a later event happens; and
	(b)	the scheme operator fails to give the resident under the residence contract, as soon as practicable after the event happens, written notice of—
	(i)	the date the later event happens; and
	(ii)	the date the cooling-off period ends.
Maximum penalty: 100 penalty units.
32	Residence contract may be rescinded during cooling-off period
A resident of a retirement village may, by written notice to the scheme operator for the village, rescind a residence contract in relation to the village before the cooling-off period ends.
Note	For how a resident’s ingoing contribution is dealt with on rescission of a residence contract during the cooling-off period, see div 4.6.
Division 4.5	Dealing with property assigned during cooling-off period
33	Meaning of authorised person—div 4.5
In this division:
authorised person means—
	(a)	the public trustee; or
	(b)	the lawyer for a scheme operator of a retirement village.
34	Offences—failure to deal with instruments assigning property during cooling-off period
	(1)	A scheme operator for a retirement village commits an offence if—
	(a)	a person enters into a residence contract to secure the person’s, or someone else’s, right to live in the village; and
	(b)	the person assigns property under the residence contract before the cooling-off period for the residence contract ends; and
	(c)	the scheme operator fails to ensure the instrument assigning the property is held on trust by an authorised person.
Maximum penalty:  100 penalty units.
	(2)	An authorised person commits an offence if—
	(a)	the authorised person holds an instrument assigning property under a residence contract on trust; and
	(b)	the residence contract is rescinded during the cooling-off period; and
	(c)	the authorised person fails to release the instrument to the person who assigned the property. 
Maximum penalty:  100 penalty units.
	(3)	An authorised person commits an offence if—
	(a)	the authorised person holds an instrument assigning property under a residence contract on trust; and
	(b)	the residence contract is not rescinded during the cooling-off period; and
	(c)	the authorised person fails, at the end of the cooling-off period, to release the instrument to the person to whom the property is assigned or someone else nominated by the person. 
Maximum penalty:  100 penalty units.
35	Offences—reassigning property acquired during cooling‑off period
	(1)	A person (the assignee) commits an offence if—
	(a)	the assignee acquires property under an instrument assigning property under a residence contract during the cooling-off period for the residence contract; and
	(b)	the residence contract is rescinded; and
	(c)	the assignee fails to reassign, as soon as possible after the assignee becomes aware the residence contract has been rescinded, the property to the person (the assignor) from whom the assignee acquired it or someone else, at the assignor’s written direction.
Maximum penalty:  100 penalty units.
	(2)	An assignee commits an offence if—
	(a)	the assignee acquires property under an instrument assigning property under a residence contract during the cooling-off period of a residence contract; and
	(b)	the residence contract is rescinded; and
	(c)	the assignee fails to reassign the property free of all interests, mortgages and other charges to which it has become subject since the assignee acquired it.
Maximum penalty:  100 penalty units.
36	Costs of reassigning property
A person who is assigned property under a residence contract is responsible for the costs, expenses and duties relating to a reassignment of the property under section 35.
37	Scheme operator to compensate assignor in certain circumstances
	(1)	This section applies if a person  who is assigned property under a residence contract (the assignee) is required under section 35 to reassign property to a person (the assignor) on rescission of a residence contract but the assignee—
	(a)	has disposed of the property; or
	(b)	is unable, when the residence contract is rescinded, to discharge the interests, mortgages and other charges (if any) to which the property has become subject since the assignee acquired it.
	(2)	The scheme operator for the retirement village to which the residence contract relates must pay compensation to—
	(a)	the assignor; or
	(b)	someone else, at the assignor’s written direction.
	(3)	The amount of compensation payable—
	(a)	is the amount equal to the value attributed to the assigned property under the residence contract (exclusive of GST); and
	(b)	may be recovered as a debt payable by the scheme operator to the assignor or the person mentioned in subsection (2) (b).
	(4)	If there are 2 or more scheme operators for the retirement village, the scheme operators are jointly and severally liable to pay the compensation.
Division 4.6	Dealing with ingoing contributions
38	Meaning of ingoing contribution
In this Act:
ingoing contribution means an amount payable by a person under a residence contract for a retirement village to secure a right for the person, or someone else, to live in the retirement village, whether or not—
	(a)	the right to live in the retirement village is enforceable; or
	(b)	the payment alone secures the right, or something else is also required to secure the right.
39	Meaning of trustee—div 4.6
In this division:
trustee means—
	(a)	the public trustee; or
	(b)	the lawyer for a scheme operator for a retirement village; or
	(c)	a real estate agent; or
	(d)	a licensed trustee company under the Corporations Act, section 601RAA.
40	Offence—failure to give ingoing contributions to trustee
	(1)	A person commits an offence if the person—
	(a)	receives an amount as an ingoing contribution under a residence contract; and
	(b)	fails to give the amount to a trustee to hold on trust.
Maximum penalty:  100 penalty units.
	(2)	A receipt issued by a trustee in relation to an amount received under subsection (1) is evidence that a person has not contravened subsection (1).
	(3)	Subsection (1) does not apply if a person receives an amount after the latest day that the amount would otherwise be required to be held on trust under section 41 (1) (b).
Note 1	The person has an evidential burden in relation to the matters mentioned in s (3) (see Criminal Code, s 58).
Note 2	For how a person may deal with an amount received in these circumstances, see s 42. 
41	Offences—failure to hold and repay ingoing contributions
	(1)	A trustee commits an offence if the trustee—
	(a)	receives an amount as an ingoing contribution in relation to a residence contract; and
	(b)	fails to hold the amount on trust until the day the latest of the following happens:
	(i)	the day a condition precedent to a residence contract is fulfilled; 
	(ii)	the day a cooling-off period in relation to the residence contract ends; 
	(iii)	if the amount relates to an accommodation unit that has not previously been occupied—the day the accommodation unit is suitable for habitation and the resident is entitled to vacant possession of the unit.
Examples—when a unit is not suitable for habitation
1	reticulated water is not connected to the accommodation unit
2	all sanitary installations are not installed or are not operational in the accommodation unit
Note	An example is part of the Act, is not exhaustive and may extend, but does not limit, the meaning of the provision in which it appears (see Legislation Act, s 126 and s 132).
Maximum penalty:  100 penalty units.
	(2)	A trustee commits an offence if the trustee—
	(a)	receives an amount as an ingoing contribution in relation to a residence contract before the latest day that the amount is required to be held on trust under subsection (1) (b); and
	(b)	fails to pay the amount on the latest day to the person lawfully entitled to it.  
Maximum penalty:  100 penalty units.
	(3)	Subsection (2) does not apply if the trustee is given a notice that all or part of the amount is in dispute.
42	Receiving ingoing contributions after events
If a person receives an amount as an ingoing contribution under a residence contract after the latest day that the amount would otherwise have been required to be held on trust under section 41 (1) (b), the person—
	(a)	if the person is lawfully entitled to the amount—may keep the amount; or
	(b)	in any other case—must pay the amount directly to the person lawfully entitled to it.
43	Offence—failure to give notice of dispute
A scheme operator for a retirement village commits an offence if—
	(a)	a retirement village dispute arises between the scheme operator and a resident of the village about who is lawfully entitled to an amount received as an ingoing contribution in relation to a residence contract; and
	(b)	the scheme operator does not immediately give written notice to the trustee of the amount in dispute.
Maximum penalty:  100 penalty units.
Note	Retirement village dispute—see s 197.
44	Offence—failure to hold disputed amounts in trust
A trustee commits an offence if the trustee—
	(a)	receives an amount to hold on trust under this division; and
	(b)	is given written notice that all or part of the amount (the disputed amount) is in dispute; and
	(c)	fails to hold the disputed amount on trust until the dispute is resolved—
	(i)	as provided for under this Act; or
	(ii)	by written agreement between the parties.
Maximum penalty:  100 penalty units.
45	Offence—failure to repay trust amounts after residence contracts rescinded during cooling-off period
A trustee commits an offence if—
	(a)	the trustee holds an amount received as an ingoing contribution in relation to a residence contract; and
	(b)	the residence contract is rescinded during the cooling-off period for the contract; and
	(c)	the trustee fails to immediately pay the amount to the person lawfully entitled to it.
Maximum penalty:  100 penalty units.
46	Unpaid amounts recoverable as debts
If a person (the payer) who is required to pay an amount to someone (the payee) under this division does not pay the amount, the payee may recover it as a debt payable by the payer to the payee.
Division 4.7	Ending residence contracts during settling-in period 
47	Meaning of settling-in period
For this Act, a settling-in period, for a residence contract in relation to a retirement village, ends—
	(a)	90 days after the day the resident is entitled to occupy the accommodation unit in the village; or
	(b)	if the resident occupies the accommodation unit before the day mentioned in paragraph (a)—90 days after the day the resident first occupies the unit; or
	(c)	if the scheme operator and the resident agree another day—the agreed day.
48	Residence contract may be ended during settling-in period 
	(1)	A resident of a retirement village may end a residence contract with the scheme operator for the village by written notice to the operator before the settling-in period ends.
	(2)	To remove any doubt a resident may, but need not, have started to occupy an accommodation unit to which a residence contract relates before ending the contract under this section.
49	Amounts payable by residents if residence contract ended during settling-in period
	(1)	If a resident ends a residence contract under section 48, the resident must pay the scheme operator—
	(a)	fair market rent for the period (if any) that the resident occupied the accommodation unit under the contract; and
	(b)	the cost of any reinstatement work required to be undertaken in relation to the unit; and
	(c)	an administration fee under subsection (2); and
	(d)	any other amount prescribed by regulation.
	(2)	An administration fee for subsection (1) (c)—
	(a)	must be reasonable; and
	(b)	if a maximum amount is prescribed by regulation—must not exceed the prescribed amount.
	(3)	An amount payable by a resident under this section may be off-set against an amount that is to be refunded to the resident under section 59 (Offence—failure to pay exit entitlements to residents who own units) and 60 (Offence—failure to pay exit entitlement to residents who do not own units).
Division 4.8	Ending residence contracts in other circumstances
50	Meaning of resident—div 4.8
In this division:
resident includes a person who, for someone else, enters into a residence contract to secure the other person’s right to live in a retirement village.
51	Ending residence contracts—div 4.8—effect
To remove any doubt, ending a residence contract under this division does not extinguish any rights, including any cause of action, that have accrued to either party under the contract.
52	Ending residence contracts—residents
	(1)	A resident of a retirement village may end a residence contract with a scheme operator for the village by 1 month’s written notice given to the scheme operator for the village.
	(2)	If no scheme for the retirement village is registered, the notice must—
	(a)	be given not later than 14 days after the day the resident becomes aware no scheme is registered; and
	(b)	state the day, not earlier than the day the notice is given, when the residence contract ends.
53	Ending residence contracts—scheme operators
	(1)	The scheme operator for a retirement village may end a residence contract in relation to the village by giving the resident under the contract 14 days written notice if the scheme operator believes on reasonable grounds that—
	(a)	the resident has intentionally or recklessly—
	(i)	injured a person while the person is in the retirement village; or
	(ii)	seriously damaged the resident’s accommodation unit; or
	(iii)	seriously damaged property of another person in the retirement village; or
	(b)	the resident is likely to, intentionally or recklessly, do something mentioned in paragraph (a).
	(2)	The scheme operator for a retirement village may end a residence contract by giving the resident 2 months written notice if—
	(a)	the resident has committed a material breach of the residence contract; or
	(b)	the operator believes on reasonable grounds that the resident has abandoned the resident’s right to live in the village; or
	(c)	the operator and a person who has assessed the resident’s care needs under the Aged Care Act 1997 (Cwlth), section 22-4 (Assessments of care needs) believe on reasonable grounds the resident’s kind of accommodation is now unsuitable for the resident.
Examples—par (c)
1	the resident lives in an independent living unit and now needs help with personal care not normally provided by the scheme operator
2	the resident’s increased care needs cannot be met by a relative who lives with the resident
Note 1	A relative of a resident who is living in an accommodation unit when the resident’s residence contract ends under s 55 may have a right to continue to live in the accommodation unit (see div 6.4).
Note 2	An example is part of the Act, is not exhaustive and may extend, but does not limit, the meaning of the provision in which it appears (see Legislation Act, s 126 and s 132).
	(3)	However, the scheme operator must not give effect to a notice given under subsection (2) (c) unless satisfied on reasonable grounds that suitable accommodation is available for the resident.
	(4)	A notice given under this section must state—
	(a)	the grounds on which the residence contract is being ended; and
	(b)	the day by which the resident must vacate the accommodation unit.
	(5)	If the scheme operator does not know the resident’s current address, the operator may give the notice by publishing it in—
	(a)	a daily newspaper; and
	(b)	a newspaper circulating throughout Australia.
54	Ending residence contracts—resident’s address unknown
	(1)	This section applies if—
	(a)	a scheme operator for a retirement village wants to end a residence contract under section 53; and
	(b)	the scheme operator does not know the current address for the resident under the contract.
	(2)	The scheme operator may give the notice under section 53 by publishing it in—
	(a)	a daily newspaper; or
	(b)	a newspaper circulating throughout Australia.
	(3)	However, a notice given under subsection (2) must not include the grounds for ending the residence contract.
Maximum penalty:  50 penalty units.
55	Residence contracts automatically end on death
A residence contract in a retirement village ends when—
	(a)	the resident under the contract dies; or
	(b)	if there is more than 1 resident under the contract—the last resident dies.
Note	A relative of a resident who is living in an accommodation unit when the resident’s residence contract ends may have a right to continue to live in the accommodation unit (see div 6.4).
Division 4.9	Exit entitlements 
56	Residents may request estimates of exit entitlements
	(1)	A resident of a retirement village may ask the scheme operator for the village to give the resident a written estimate of the resident’s exit entitlement.
	(2)	The request must—
	(a)	be in writing; and
	(b)	state that the resident is considering ending the resident’s residence contract; and
	(c)	ask the scheme operator to give the resident a written estimate of the resident’s exit entitlement as at the date of the request.
57	Offence—failure to give written estimates
	(1)	A scheme operator for a retirement village commits an offence if—
	(a)	a resident of the village asks for a written estimate of the resident’s exit entitlement under section 56 (1); and
	(b)	the operator fails to give the resident the written estimate within 14 days after the day the operator receives the request. 
Maximum penalty:  40 penalty units.
	(2)	Subsection (1) does not apply if the scheme operator has given the resident a written estimate of the resident’s exit entitlement during the 6 months immediately preceding the resident’s request.
Note	The scheme operator has an evidential burden in relation to the matters mentioned in s (2) (see Criminal Code, s 58).
58	Offence—failure to refund ingoing contribution if contract ended where scheme not registered
	(1)	A scheme operator for a retirement village commits an offence if—
	(a)	a resident of the village ends a residence contract in relation to the village under section 51 (2) (Ending residence contracts—residents); and
	(b)	the operator fails to refund the full amount of the resident’s ingoing contribution to the resident within 30 days after the day the residence contract ends.
Maximum penalty:  540 penalty units.
	(2)	A resident of a retirement village may recover an amount owing under subsection (1) as a debt payable by the scheme operator of the village to the resident.
59	Offence—failure to pay exit entitlements to residents who own units
	(1)	This section applies if a resident of a retirement village owns an accommodation unit in the village.
	(2)	The scheme operator for the retirement village commits an offence if the operator fails to pay an exit entitlement to the resident within 14 days after the earliest of the following:
	(a)	the day the operator receives full payment from an incoming resident for the resident’s accommodation unit;
	(b)	the day the operator enters into a residence contract with an incoming resident of the accommodation unit; 
	(c)	the day a person starts living in the accommodation unit with the consent of the operator;
	(d)	if the resident’s residence contract states a day for payment— the day stated in the residence contract;
	(e)	if the scheme operator buys the unit from the resident—the day the operator completes the purchase;
	(f)	6 months after the day the resident delivers up vacant possession of the unit to the operator.
Maximum penalty:  50 penalty units.
60	Offence—failure to pay exit entitlement to residents who do not own units
	(1)	This section applies if a resident of a retirement village does not own an accommodation unit in the village.
	(2)	The scheme operator for the retirement village commits an offence if the operator fails to pay an exit entitlement to the resident by the earliest of the following:
	(a)	14 days after the day the operator receives full payment from an incoming resident for the resident’s accommodation unit;
	(b)	14 days after the day the operator enters into a residence contract with an incoming resident of the accommodation unit; 
	(c)	14 days after the day a person starts living in the accommodation unit with the consent of the operator;
	(d)	6 months after the day the resident delivers up vacant possession of the unit to the operator.
61	Offence—failure to give statement about exit entitlement and liabilities
	(1)	A scheme operator for a retirement village commits an offence if the operator fails to give a resident of the village an exit entitlement and liabilities statement when the operator pays the exit entitlement.
Maximum penalty:  10 penalty units.
	(2)	In this section:
exit entitlement and liabilities statement means a statement that sets out the following information in relation to a resident of a retirement village:
	(a)	the exit fee, if any, payable by the resident;
	(b)	accrued or outstanding services charges, if any, payable by the resident;
	(c)	any amount payable by the resident in relation to the sale of the accommodation unit;
	(d)	any other amount payable by the resident under a residence contract;
	(e)	for a long-term resident—the sale price of the resident’s accommodation unit;
	(f)	the amount of the resident’s exit entitlement.
long-term resident means a resident who does not own an accommodation unit but whose residence contract—
	(a)	is in the form of a long-term lease; and
	(b)	includes a provision that entitles the resident to at least 50% of any capital gain in relation to the unit.
Note	Own—see the dictionary.
62	Orders for payment of exit entitlements on sale of units
	(1)	A resident of a retirement village may apply to the ACAT for an order directing a scheme operator for the village to—
	(a)	if the operator does not pay the exit entitlement within the time required under section 59—pay an exit entitlement; or
	(b)	if the amount of the exit entitlement is not calculated in accordance with this Act and any relevant residence contract—recalculate an exit entitlement.
	(2)	The ACAT may also make an order for the payment of interest at a rate determined by the ACAT if the ACAT considers it appropriate to do so.
Division 4.10	Enforcing residence contracts
63	Enforcing residence contracts
	(1)	A residence contract in relation to a retirement village is enforceable against the following people for the recovery of all or part of the exit entitlement:
	(a)	a person who is a party to the residence contract;
	(b)	a person who is not a party to the residence contract but who, when the contract was entered into—
	(i)	was the scheme operator for the village to which the residence contract relates; or
	(ii)	owned the retirement village land of the village;
	(c)	a person who is not a party to the residence contract but who, when the contract is to be enforced—
	(i)	is the scheme operator for the village to which the residence contract relates; or
	(ii)	owns the retirement village land of the village.
	(2)	For the purpose of enforcing a residence contract against a person mentioned in subsection (1) (b) or (c), the person is taken to be the scheme operator under the contract.
	(3)	A court may make an order under this section against a person mentioned in subsection (1) (b) only if the court is satisfied that—
	(a)	an order against a person mentioned in subsection (1) (a) or (c) would be ineffectual; and
	(b)	in the particular circumstances, it is just to make the order.
64	No liability for breach of residence contracts
A scheme operator for a retirement village is not liable for breach of a residence contract in relation to the village if—
	(a)	the breach results from the operator’s failure to supply a general service to a resident under the residence contract; and
	(b)	the cost of supplying the service is more than the general services charge for the service; and
	(c)	the residents of the village have not approved an increase in the general services charge to cover the cost of supplying the service under section 146 (Offence—increasing general services charge by more than CPI); and
	(d)	in all the circumstances, the operator acted reasonably.

Part 5	Other documents relating to retirement villages
Division 5.1	General inquiry documents and public information documents
65	Meaning of public information document
In this Act:
public information document, in relation to a scheme for a retirement village, means a document that complies with the requirements stated in section 67.
66	Definitions—div 5.1
In this division:
accommodation information, for a scheme for a retirement village, means—
	(a)	the kind and number of accommodation units in the retirement village; and
	(b)	the number of accommodation units in the village that are available for sale and the sale price of each unit or, if only a right to live in a unit is available, the ingoing contribution for the right to live in the unit; and
	(c)	the kind of tenure or interest a resident obtains in an accommodation unit in the retirement village; and
Examples
1	leasehold interest	
2	licence to occupy 
3	long-term lease
Note	An example is part of the Act, is not exhaustive and may extend, but does not limit, the meaning of the provision in which it appears (see Legislation Act, s 126 and s 132).
	(d)	the nature of insurance arrangements for the village, including the amount of any excess to which any insurance policy is subject.
dispute resolution information, for a scheme for a retirement village, means— 
	(a)	the kinds of disputes for which dispute resolution is available; and
	(b)	how an application for a retirement village dispute may be made to the ACAT; and
	(c)	the fee for an application to the ACAT for resolution of a retirement village dispute, or where information about the fee can be found.
facilities information, for a scheme for a retirement village, means— 
	(a)	the facilities the scheme operator for the retirement village proposes to offer a resident under a residence contract; and
	(b)	the facilities the scheme operator proposes to offer a resident under a residence contract, depending on sales activity, finance availability or market conditions for the retirement village (each a contingency) and when they are proposed to be offered; and
	(c)	the particular contingency for offering particular facilities mentioned in paragraph (b); and
	(d)	information about when the scheme operator proposes to start levying a charge for the particular facilities mentioned in paragraph (b).
Example—par (d)
the scheme operator proposes to start levying a charge for the particular facility when the facility is in place
fund information, for a scheme for a retirement village, means—
	(a)	the details of funds the scheme operator is required to keep; and
	(b)	the balance in each fund at the end of the financial year immediately preceding the financial year for which information is given; and
	(c)	the capital replacement fund contribution; and
	(d)	details of the report under section 117 (Capital replacement reserve—reports) used to decide the proportion of a resident’s ingoing contribution to be paid to the capital replacement fund contribution.
resale process information, for an accommodation unit in a retirement village, means—
	(a)	how the asking price for the accommodation unit is to be decided; and
	(b)	when reinstatement work will be required and who pays for it; and
	(c)	the process for, and effect of, accepting offers, including when offers may be refused; and
	(d)	the provision of monthly sales information; and
	(e)	how the expenses of sale are to be shared; and
	(f)	how the capital gain for the sale is to be dealt with.
Note	Reinstatement work, in relation to an accommodation unit—see s 80.
resident contribution information, for a resident of a retirement village, means—
	(a)	information about each charge, contribution or other amount that the resident may or must pay in relation to the village; and
	(b)	how the exit fee is to be worked out, including a table showing the minimum and maximum exit fee amounts payable under a residence contract over the term of the residence contract; and
	(c)	how the general services charge is worked out in relation to the village’s total operating costs.
Examples—par (a)
ingoing contribution, exit fee, general services charge, personal services charge, contribution to a particular fund
resident rights information, for a resident of a retirement village, means—
	(a)	what the resident’s rights are to rescind a residence contract in the cooling-off period; and
	(b)	what the resident’s rights are, under a residence contract and this Act, to be given financial information about the scheme for the village; and
	(c)	what the resident’s rights are if the residence contract is ended; and
	(d)	anything else prescribed by regulation to be resident rights information.
retirement village land information, for a retirement village, means—
	(a)	details of any charge created under part 9 (Charges created over retirement village land to protect residents’ rights) over retirement village land; and
	(b)	whether or not there are any other encumbrances over retirement village land.
scheme operator payment information, for a scheme for a retirement village, means information about payments a scheme operator for the village must pay a resident of the village, including how any exit entitlement is to be worked out if a resident’s right to live in an accommodation unit ends.
services information, for a scheme for a retirement village, means the general services and personal services the scheme operator undertakes to offer a resident under a residence contract in relation to the village.
67	Form and content of general inquiry documents
A general inquiry document in relation to a scheme for a retirement village must—
	(a)	give a brief description of the services and facilities of the retirement village; and
	(b)	comply with any requirement prescribed by regulation.
Note 1	Power to make a statutory instrument (including a regulation) includes power to make different provision for different categories (see Legislation Act, s 48).
Note 2	If a form is approved under s 217 for this provision, the form must be used.
68	Offence—failure to give copy of general inquiry document
A scheme operator for a retirement village commits an offence if the scheme operator fails to 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.
Maximum penalty:  10 penalty units.
69	Form and content of public information documents 
	(1)	A public information document in relation to a scheme for a retirement village must—
	(a)	relate to only 1 scheme; and
	(b)	state any age limits for residents that apply to the scheme; and
	(c)	include the following information:
	(i)	accommodation information;
	(ii)	dispute resolution information;
	(iii)	facilities information;
	(iv)	fund information;
	(v)	resale process information;
	(vi)	resident contribution information;
	(vii)	resident rights information;
	(viii)	retirement village land information;
	(ix)	scheme operator payment information;
	(x)	services information;
	(xi)	any other information prescribed by regulation.
Note	If a form is approved under s 217 for a public information document, the form must be used.
	(2)	After a scheme for a retirement village is registered, a copy of the registration certificate for the scheme must be attached to the public information document.
70	Offences—failure to give public information document to prospective resident 
	(1)	A scheme operator for a retirement village commits an offence if—
	(a)	a prospective resident of the village—
	(i)	requests a copy of a public information document in relation to the scheme for the village; or
	(ii)	expresses an interest in an accommodation unit in the village; and
	(b)	the operator fails to give the prospective resident a copy of the public information document within 14 days after the day the operator receives the request or expression of interest.
Maximum penalty:  100 penalty units.
	(2)	A scheme operator for a retirement village commits an offence if the operator—
	(a)	enters into a residence contract with a person in relation to the village; and
	(b)	fails to give the person a public information document in relation to the scheme for the village at least 14 days before the day the operator enters into the contract with the person.
Maximum penalty:  540 penalty units.
	(3)	Subsection (2) does not apply if—
	(a)	a resident who owns an accommodation unit in a retirement village sells the unit; and
	(b)	the resident fails to give the scheme operator for the village sufficient notice of the proposed sale to allow the operator to give a person a public information document within the time mentioned in subsection (2); and
	(c)	the scheme operator gives the public information document as soon as practicable after receiving the notice of sale.
Note	The scheme operator has an evidential burden in relation to the matters mentioned in s (3) (see Criminal Code, s 58).
71	Offences—failure to notify inaccuracies in public information documents 
	(1)	A scheme operator for a retirement village commits an offence if—
	(a)	a detail in a public information document in relation to the scheme for the village becomes materially inaccurate (an inaccuracy); and
	(b)	the inaccuracy will or is likely to materially affect a resident of the village; and
	(c)	the operator fails to give written notice of the inaccuracy to the resident within 28 days after the day the operator becomes aware of the inaccuracy.
Maximum penalty:  540 penalty units.
	(2)	A scheme operator for a retirement village commits an offence if—
	(a)	a detail in a public information document in relation to the village becomes materially inaccurate (an inaccuracy); and
	(b)	the inaccuracy will or is likely to materially affect a resident of the village; and
	(c)	the operator fails to give written notice of the inaccuracy to the commissioner for fair trading within 28 days after the day the operator becomes aware of the inaccuracy.
Maximum penalty:  540 penalty units.
	(3)	A scheme operator for a retirement village commits an offence if—
	(a)	a detail in a public information document in relation to the village becomes materially inaccurate (an inaccuracy); and
	(b)	a person has signed a residence contract in relation to the village; and
	(c)	the settling-in period for the residence contract has not ended; and
	(d)	the operator fails to give written notice of the inaccuracy to the person— 
	(i)	if the cooling-off period has not ended—before the cooling-off period ends; or
	(ii)	if the cooling-off period has ended—before the settling‑in period ends; or
	(iii)	if the operator has a reasonable excuse for not giving the notice before the relevant period mentioned in subparagraph (i) or (ii)—as soon as practicable after becoming aware of the inaccuracy.
Maximum penalty:  540 penalty units.
	(4)	A scheme operator for a retirement village commits an offence if—
	(a)	a detail in a public information document in relation to the village becomes materially inaccurate (an inaccuracy); and
	(b)	a person has signed a residence contract in relation to the village; and
	(c)	the settling-in period for the residence contract has not ended; and
	(d)	the operator fails to give written notice of the inaccuracy to the person— 
	(i)	before the settling-in period ends; or
	(ii)	if the operator has a reasonable excuse for not giving the notice before the settling-in period ends—as soon as practicable after becoming aware of the inaccuracy.
Maximum penalty:  540 penalty units.
	(5)	A scheme operator for a retirement village commits an offence if—
	(a)	a detail in a public information document in relation to the village becomes materially inaccurate (an inaccuracy); and
	(b)	a person has told the operator that the person intends to enter into a residence contract in relation to the village; and
	(c)	the operator fails to give written notice of the inaccuracy to the person before the person enters into the residence contract.
Maximum penalty:  540 penalty units.
	(6)	For this section, a public information document becomes materially inaccurate if the document becomes inaccurate in a way that may materially affect the interests of a resident of the retirement village to which the public information document relates.
72	Offence—failure to correct inaccuracies in public information documents
A scheme operator for a retirement village commits an offence if—
	(a)	a detail in a public information document in relation to the village becomes inaccurate (an inaccuracy); and
	(b)	the operator fails to correct the inaccuracy as soon as practicable after becoming aware of the inaccuracy.
Maximum penalty:  540 penalty units.
Division 5.2	Other matters
73	Access by residents to certain documents
	(1)	On the request of a resident of a retirement village, the scheme operator for the village must, in relation to a relevant document in the operator’s possession—
	(a)	allow the resident to inspect the relevant document; or
	(b)	on payment of reasonable copying costs, give a copy of the relevant document to the resident.
Note	The scheme operator must give a resident a copy of a residence contract and public information document in relation to the residence contract (see s 27 and s 70). 
	(2)	The request must—
	(a)	be in writing; and
	(b)	state a time for the resident to inspect or obtain a copy of the relevant document that is at least 7 days after the day the request is made.
	(3)	In this section:
relevant document means a resident’s residence contract for a retirement village or public information document in relation to the scheme for the village.
74	Offence—failure to comply with requests for access
A scheme operator for a retirement village commits an offence if the operator fails to comply with a request under section 73.
Maximum penalty:  10 penalty units.
75	Residential care service information 
	(1)	This section applies if a scheme operator for a retirement village—
	(a)	is approved to provide a residential care service; and
	(b)	promotes the residential care service to residents of the village.
Note	A person may be approved to provide a residential care service under the Aged Care Act 1997 (Cwlth).
	(2)	Any promotional material in relation to the residential care services must include a statement to the following effect:
‘Access to a residential care service is subject to being assessed as in need of the service under the Aged Care Act 1997 (Cwlth). A place in a residential care service cannot be guaranteed.’.
	(3)	In this section:
residential care service—see the Aged Care Act 1997 (Cwlth), dictionary. 

Part 6	Dealing with accommodation units
Division 6.1	Waiting list fees
76	Meaning of waiting list fee—div 6.1
In this division:
waiting list fee, for a retirement village, means any amount paid to the scheme operator for the village, other than—
	(a)	an ingoing contribution; or
	(b)	a payment under a residence contract in relation to the village.
77	Offence—requiring or accepting waiting list fees
	(1)	A scheme operator for a retirement village commits an offence if the operator requires or accepts payment of a waiting list fee from a person.
Maximum penalty:  100 penalty units.
	(2)	Subsection (1) does not apply if—
	(a)	the fee is not more than $200, or another amount prescribed by regulation; and
	(b)	the scheme operator has a written policy setting out the way the waiting list operates; and
	(c)	the scheme 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 scheme operator has an evidential burden in relation to the matters mentioned in s (2) (see Criminal Code, s 58).
78	Offences—failure to repay waiting list fees
	(1)	A scheme operator for a retirement village commits an offence if—
	(a)	a waiting list fee for the village is paid by or on behalf of a prospective resident; and
	(b)	the prospective resident later enters into a residence contract in relation to the village; and
	(c)	the operator fails to refund the waiting list fee to the person lawfully entitled to it when the prospective resident enters into the residence contract.
Maximum penalty:  100 penalty units.
	(2)	A scheme operator for a retirement village commits an offence if—
	(a)	a waiting list fee for the village is paid by or on behalf of a prospective resident; and
	(b)	the prospective resident does not later enter into a residence contract; and 
	(c)	the operator fails to refund the waiting list fee to the person lawfully entitled to it within 14 days after the day the operator receives a written request from that person.
Maximum penalty:  100 penalty units.
	(3)	Subsection (1) does not apply if—
	(a)	an ingoing contribution is payable in relation to the retirement village; and
	(b)	the scheme operator deducts the waiting list fee from the ingoing contribution.
Note	The scheme operator has an evidential burden in relation to the matters mentioned in s (3) (see Criminal Code, s 58).
79	Orders for repayment of waiting list fees
	(1)	A resident may apply to the ACAT for an order directing a scheme operator for a retirement village to repay a waiting list 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.
Division 6.2	Condition of accommodation units
80	Meaning of reinstatement work
In this Act:
reinstatement work, in relation to an accommodation unit, means any repairs to the accommodation unit needed to restore it as nearly as possible to the same condition (excluding fair wear and tear) as set out in the condition report. 
81	Definitions—div 6.2
In this division:
condition report—see section 82 (1). 
resident, of a retirement village, does not include a person who owns an accommodation unit in the village.
Note	Own—see the dictionary.
82	Condition reports
	(1)	A scheme operator for a retirement village must give the resident of the village 2 copies of a report (a condition report) about the state of repair or general condition of the resident’s accommodation unit, and any goods provided with the unit, on the day the resident is given the report.
	(2)	The report must be—
	(a)	signed by the scheme operator; and
	(b)	given to the resident not later than the day after the day the resident takes possession of the accommodation unit.
	(3)	The resident must, not later than 2 weeks after the day the resident receives the copies of the report, return to the scheme operator 1 copy of the report—
	(a)	signed by the resident; and
	(b)	if the resident disagrees with the whole or part of the report—stating that the resident disagrees with the report and what part the resident disagrees with.
	(4)	If the resident returns a signed copy of the report without any other notations, the resident is taken to have agreed with the whole of the report.
83	Condition on vacating units
	(1)	A resident of a retirement village must, on vacating an accommodation unit, leave the resident’s accommodation unit as nearly as possible in the same condition (excluding fair wear and tear) as set out in the condition report.
	(2)	The scheme operator for the retirement village may require the resident to meet the cost of any reinstatement work to the resident’s accommodation unit.
	(3)	The resident may apply to the ACAT for an order in relation to the cost of reinstatement work if the resident—
	(a)	disagrees that the work is needed; or
	(b)	considers the cost is excessive.
	(4)	In an application to the ACAT under this section—
	(a)	the scheme operator bears the onus of substantiating the cost of the reinstatement work; and
	(b)	the ACAT may—
	(i)	if it considers that the scheme operator has not substantiated the cost—order the operator to withdraw the claim; or
	(ii)	if it considers that the scheme operator has substantiated the cost, in whole or in part—order the resident to pay the cost or an amount ordered by the ACAT to meet the cost of the reinstatement work.
	(5)	This section is subject to section 84.
84	Renovations and alteration of fixtures or fittings
	(1)	A resident of a retirement village may carry out either of the following only with the written consent of the scheme operator for the village:
	(a)	add, remove or alter any fixtures or fittings (an alteration) on or within the resident’s accommodation unit;
	(b)	carry out renovations to the resident’s accommodation unit.
Note	Other laws may restrict what alterations or renovations a resident may carry out. For example, a development may require approval under the Planning and Development Act 2007.
	(2)	However, a resident may undertake any of the following without the scheme operator’s consent:
	(a)	remove or alter any fixtures or fittings that were added by a resident, unless the removal or alteration of the fixtures or fittings is likely to cause—
	(i)	significant damage to the residential premises; or
	(ii)	significant disruption to other residents.
	(b)	carry out alterations or renovations prescribed by regulation.
	(3)	The scheme operator—
	(a)	must not unreasonably withhold consent; and
	(b)	may give consent subject to reasonable conditions stated in the consent.
Example—par (b)
The scheme operator may require the resident when vacating the accommodation unit to return the unit to the same condition as it was immediately before the consent was given.
	(4)	A resident of a retirement village may apply to the ACAT for an order—
	(a)	allowing the resident to carry out a stated alteration on or within, or renovation to, the resident’s accommodation unit; or
	(b)	amending the conditions to which the scheme operator’s consent is subject.
	(5)	The ACAT may make an order under subsection (4) if satisfied that—
	(a)	for an application to allow stated alterations or renovations—the scheme operator of the retirement village unreasonably withheld consent; or 
	(b)	for an application to amend the conditions to which a scheme operator’s consent is given—the scheme operator’s conditions are unreasonable.
Division 6.3	Reselling accommodation units
85	Definitions—div 6.3
In this division:
resident, of a retirement village, means a resident who owns an accommodation unit in the village.
Note	Own—see the dictionary.
selling agent means a person appointed by a resident of a retirement village to sell the resident’s accommodation unit in the village.
Note	See the Agents Act 2003 for other obligations about people selling real estate.
86	Appointing selling agents
	(1)	A resident of a retirement village may appoint a selling agent of the resident’s choice.
	(2)	A resident of a retirement village may, but need not, appoint the scheme operator for the village as a selling agent if the operator is licensed as a real estate agent under the Agents Act 2003. 
	(3)	A scheme operator for a retirement village must not make it a condition of entry into the village that the operator or someone appointed by the operator—
	(a)	act as the selling agent for a resident of the village; or
	(b)	set the sale price of the resident’s accommodation unit.
	(4)	If a scheme operator purports to impose a condition mentioned in subsection (3), the condition is void. 
87	Setting asking price of accommodation units
	(1)	The asking price for an accommodation unit in a retirement village is the price agreed in writing between the resident who owns the unit and the scheme operator for the village.
	(2)	However, if the parties cannot agree on an asking price within 14 days after the day the resident has appointed a selling agent, the asking price is an amount determined by an independent valuer agreed by the parties. 
	(3)	If the parties cannot agree on a valuer within 28 days after the day the resident has appointed a selling agent, ether party may apply to the registrar of the ACAT for the registrar to decide the valuer.
88	Selling accommodation units
	(1)	A scheme operator for a retirement village, or a person nominated by the operator, who is appointed as a selling agent for a resident’s accommodation unit must—
	(a)	notify the resident of all offers to buy the accommodation unit; and
	(b)	if requested by the resident—give the resident, at the end of each month, a report stating the following details for that month:
	(i)	the marketing program, including details of all advertising of the accommodation unit or the village;
	(ii)	a list of all inquiries received about the sale of the accommodation unit; 
	(iii)	the names and telephone numbers, or other contact details, of the people who made the inquiries, to the extent that the details are known to the scheme operator;
	(iv)	details, including the asking price, of all other accommodation units for sale in the village.
	(2)	If a person other than a scheme operator for a retirement village is appointed as selling agent for an accommodation unit in the village, the resident of the unit must give the operator written notice of—
	(a)	the name and contact details of the selling agent; and
	(b)	any changes to the appointment or contact details of the selling agent.
89	Buyers and scheme operators to enter into residence contracts
	(1)	A contract for the sale of an accommodation unit in a retirement village is taken to include a provision to the effect that the contract is conditional on the buyer of the accommodation unit entering into a residence contract with the scheme operator for the retirement village on or before completion of the sale.
	(2)	If the scheme operator decides not to enter into a residence contract with the buyer of the accommodation unit, the operator must, not later than 21 days after the day the operator is notified of the sale by the resident who owns the unit—
	(a)	tell the resident about the scheme operator’s decision and the reasons for it; and
	(b)	apply to the ACAT for an order declaring that the operator is not obliged to enter into the residence contract.
90	Offences—failure to give notice about sale of units
	(1)	A resident of a retirement village commits an offence if the resident—
	(a)	sells an accommodation unit in the village; and
	(b)	fails to give the scheme operator for the village sufficient notice of the proposed sale to enable the scheme operator to comply with section 70 (Offences—failure to give public information document to prospective resident).
Maximum penalty:  60 penalty units.
	(2)	A resident of a retirement village commits an offence if the resident—
	(a)	sells an accommodation unit in the village; and
	(b)	fails to notify the scheme operator of the village as soon as practicable after the contract for the sale of the accommodation unit is entered into. 
Maximum penalty:  60 penalty units.
Division 6.4	Relatives in accommodation units
91	Relatives may continue to live in units
	(1)	This section applies if—
	(a)	a resident’s right to live in an accommodation unit under a residence contract in relation to a retirement village ends because the resident dies or vacates the unit; and
	(b)	a relative of the resident, who was not a party to the residence contract, was living in the accommodation unit when the residence contract ended; and
	(c)	the relative has lived in the accommodation unit for at least 6 consecutive months immediately before the residence contract ended.
	(2)	The relative has a right to live in the accommodation unit for 3 months after the day the residence contract ends if the relative agrees to be bound by the terms of the resident’s residence contract during the 3-month period.
	(3)	The relative’s agreement must be—
	(a)	in writing; and 
	(b)	given to the scheme operator for the retirement village not later than 14 days after the day the residence contract ends.
	(4)	The relative has the rights and liabilities of a resident under this Act during the 3-month period.
Note	Relative, of a resident—see the dictionary.
92	Relatives may enter into residence contracts
	(1)	This section applies if—
	(a)	a resident’s right to live in an accommodation unit under a residence contract in relation to a retirement village ends because the resident dies or vacates the accommodation unit; and
	(b)	a relative of the resident, who was not a party to the residence contract, was living in the accommodation unit when the residence contract ended; and
	(c)	the relative has lived in the accommodation unit for at least 6 consecutive months immediately before the residence contract ended; and
	(d)	no other person has a right under the resident’s residence contract to live in the accommodation unit; and
	(e)	the relative meets the eligibility criteria for a resident of the retirement village.
	(2)	The relative may, at least 14 days before the end of the 3-month period mentioned in section 91 (2), tell the scheme operator for the retirement village, in writing, that the relative wants to enter into a residence contract for the accommodation unit.
	(3)	The scheme operator must enter into a residence contract for the accommodation unit with the relative before the end of the 3-month period.
	(4)	The residence contract must be on the same terms as would be offered to any other resident of the accommodation unit.
	(5)	However, the residence contract may be amended to include an agreement between the relative and the scheme operator about reinstatement work for the accommodation unit.

Part 7	Operation and management of retirement villages
Division 7.1	Scheme operators 
93	Definitions—div 7.1
In this division:
conviction—see the Spent Convictions Act 2000, section 6.
insolvent under administration—see the Corporations Act, section 9.
relevant conviction—
	(a)	means a conviction for—
	(i)	an offence involving fraud or dishonesty punishable, at the time the conviction is recorded, by not less than 3 months imprisonment; or
	(ii)	an offence involving physical violence to someone else; but
	(b)	does not include a spent conviction.
spent, for a conviction—see the Spent Convictions Act 2000, section 7.
94	Offence—operating retirement village schemes etc while insolvent
	(1)	A person commits an offence if the person—
	(a)	is insolvent under administration; and
	(b)	does any of the following:
	(i)	operates a scheme for a retirement village; 
	(ii)	promotes a scheme for a retirement village; 
	(iii)	sells a right to live in a retirement village; 
	(iv)	is involved, directly or indirectly, in managing a retirement village.
Maximum penalty:  100 penalty units.
	(2)	Subsection (1) (b) (ii) and (iii) does not apply to the following people who do something mentioned in the subsection only to end the resident’s or former resident’s right to live in an accommodation unit in a retirement village:
	(a)	a person who is a resident or former resident of the village; 
	(b)	a person who acts for the resident or former resident of the village.
Note	The person has an evidential burden in relation to the matters mentioned in s (2) (see Criminal Code, s 58).
95	Offence—operating retirement village schemes etc with relevant conviction
	(1)	A person commits an offence if the person—
	(a)	has a relevant conviction; and
	(b)	does any of the following:
	(i)	operates a scheme for a retirement village;
	(ii)	promotes a scheme for a retirement village; 
	(iii)	sells rights to live in a retirement village; 
	(iv)	is involved, directly or indirectly, in managing a retirement village.
Maximum penalty:  100 penalty units.
	(2)	Subsection (1) (b) (ii) and (iii) does not apply to the following people who do something mentioned in the subsection only to end the resident’s or former resident’s right to live in an accommodation unit in a retirement village:
	(a)	a person who is a resident or former resident of the village; 
	(b)	a person who acts for the resident or former resident of the village.
Note	The person has an evidential burden in relation to the matters mentioned in s (2) (see Criminal Code, s 58).
Division 7.2	Operating etc unregistered retirement village schemes
96	Offence—operating etc unregistered retirement villages 
	(1)	A person commits an offence if—
	(a)	the person does any of the following:
	(i)	operates a scheme for a retirement village;
	(ii)	induces or invites, including by using a document or publishing an advertisement, another person to—
	(A)	live in the retirement village to which the scheme relates; or
	(B)	pay an ingoing contribution in relation to the retirement village; or
	(C)	do another act in relation to the scheme for the village; 
	(iii)	extends an existing retirement village; and
	(b)	no scheme for the retirement village is registered.
Maximum penalty:  540 penalty units.
	(2)	Subsection (1) (a) (ii) does not apply if the person merely invites expressions of interest in relation to the retirement village.
Note	The person has an evidential burden in relation to the matters mentioned in s (2) (see Criminal Code, s 58).
97	ACAT orders to stop operating etc unregistered retirement villages
	(1)	This section applies if the commissioner for fair trading believes on reasonable grounds that a person is contravening section 96.
	(2)	The commissioner for fair trading may apply to the ACAT for an order to stop the person from contravening the section.
Note	The ACT Civil and Administrative Tribunal Act 2008, s 56 sets out other orders the ACAT may make.
98	Orders appointing people to control operations of retirement villages
	(1)	This section applies if the commissioner for fair trading believes on reasonable grounds the interests of residents of a retirement village are compromised by the management of the village. 
	(2)	The commissioner for fair trading may apply to the ACAT for—
	(a)	if the circumstances are urgent—an interim order appointing a stated person to control the operation of the retirement village; or
	(b)	in any other case—an order appointing a stated person to control the operation of the retirement village.
Note	The ACT Civil and Administrative Tribunal Act 2008, s 56 sets out other orders the ACAT may make.
Division 7.3	Exercise of powers of attorney by scheme operators
99	Offence—exercising powers of attorney
	(1)	A scheme operator for a retirement village commits an offence if the operator exercises, or purports to exercise, a power conferred on, or exercisable by, the operator under a power of attorney given by a resident of the village in favour of the operator.
Maximum penalty:  540 penalty units.
	(2)	Subsection (1) does not apply if—
	(a)	the scheme operator is a relative of the resident; or
	(b)	the scheme operator exercises, or purports to exercise, a power of attorney given to the operator by the resident to execute a surrender of a registered lease in favour of the resident over an accommodation unit after the resident’s residence contract has ended lawfully under this Act.
Note 1	The scheme operator has an evidential burden in relation to the matters mentioned in s (2) (see Criminal Code, s 58).
Note 2	Relative, of a resident—see the dictionary.
	(3)	In this section:
power of attorney—see the Powers of Attorney Act 2006, dictionary. 
Division 7.4	Other matters
100	Consultation about retirement village redevelopment 
	(1)	This section applies if a scheme operator for a retirement village proposes to redevelop the village.
	(2)	Before starting the redevelopment, the scheme operator must call a residents meeting, by written notice to each resident, at which the operator must—
	(a)	present a plan of, and report on, the proposed redevelopment; and
	(b)	answer any reasonable question put by a resident in relation to the proposed redevelopment.
	(3)	The notice must—
	(a)	be given at least 14 days before the meeting; and 
	(b)	set out—
	(i)	the time and place of the meeting; and
	(ii)	the reason for the meeting.
	(4)	The scheme operator must not undertake the proposed redevelopment unless the operator has—
	(a)	considered a resident’s rights to live in the retirement village arising from the resident’s residence contract; and
	(b)	if relevant, made reasonable arrangements for alternative accommodation for affected residents during the redevelopment.
Maximum penalty:  200 penalty units.
	(5)	In this section:
redevelop, a retirement village, means development in relation to the village that would have a significant impact on a resident’s right to live in the village under the resident’s residence contract.

Part 8	Financial management of retirement villages
Division 8.1	Capital improvement
101	Meaning of capital improvement
In this Act:
capital improvement—
	(a)	means the initial provision of a capital item; and
	(b)	includes, to the extent that it is not inconsistent with paragraph (a), a thing that is a capital improvement under a ruling under the Taxation Administration Act 1953 (Cwlth) dealing with capital improvements. 
Note	Capital item, in relation to a retirement village—see the dictionary.
102	Responsibility for capital improvement of retirement villages
	(1)	A scheme operator for a retirement village is solely responsible for the cost of the village’s capital improvements, including the capital improvement of the village’s communal facilities owned by the operator.
	(2)	This section is subject to section 103 and section 104.
103	Responsibility of residents for capital improvement—accommodation units
	(1)	This section applies if—
	(a)	a resident of a retirement village gives the scheme operator for the village a written request for a stated capital improvement to the resident’s accommodation unit; and
	(b)	the scheme operator makes or agrees to make the capital improvement.
	(2)	The resident is solely responsible for the cost of the capital improvement.
104	Responsibility of residents for capital improvement—retirement villages
	(1)	This section applies if—
	(a)	residents of a retirement village, by special resolution at a residents meeting, agree to ask the scheme operator for the village, in writing, for a stated capital improvement to the retirement village; and
	(b)	the scheme operator makes or agrees to make the capital improvement.
	(2)	All residents of the retirement village when the vote was taken are jointly responsible for the cost of the capital improvement.
105	Responsibility of former residents for capital improvement
If a former resident of a retirement village stops being liable, under section 142 (2) (b) (Working out and paying general services charge for former residents), to pay a proportion of the general services charge—
	(a)	the former resident stops being liable, under section 103 or section 104, for the cost of a capital improvement; and
	(b)	the scheme operator for the village becomes liable for the resident’s share of the cost of the capital improvement.
106	Quotations for capital improvement
	(1)	This section applies if—
	(a)	a resident of a retirement village asks the scheme operator for the village, in writing, to obtain quotations for a stated capital improvement to the resident’s accommodation unit; or
	(b)	the residents of the village, at a residents meeting, agree to ask the scheme operator for the retirement village, in writing, to obtain quotations for a stated capital improvement to the retirement village.
	(2)	The scheme operator must obtain at least 2 quotations from people who the operator is satisfied on reasonable grounds have the experience or expertise to provide the capital improvement. 
	(3)	However, the scheme operator need not obtain 2 quotations if satisfied on reasonable grounds that it is not practicable to obtain more than 1 quotation. 
	(4)	The scheme operator must, as soon as practicable after obtaining a quotation, give the resident who requested the quotation under section 103 or the residents of the village who requested the quotation under section 104—
	(a)	a copy of the quotation; or
	(b)	if it is not practicable to give a copy of the quotation—a summary of the quotation and details about where the complete quotation may be inspected.
	(5)	Any reasonable cost associated with obtaining a quotation must be paid by—
	(a)	for a quotation requested by a resident under section 103—the resident; or
	(b)	for a quotation requested by the residents of a retirement village under section 104—all residents jointly.
107	Payment of capital improvement
	(1)	This section applies if a scheme operator for a retirement village receives a request for a capital improvement under section 103 (Responsibility of residents for capital improvement—accommodation units) or section 104 (Responsibility of residents for capital improvement—retirement villages).
	(2)	The scheme operator may, as a condition of agreeing to make the capital improvement, require the resident or residents to pay the cost of the improvement before the improvement is made.
108	Offences—dealing with amounts received for capital improvement
	(1)	A scheme operator for a retirement village commits an offence if the operator—
	(a)	receives an amount for the cost of a capital improvement to an accommodation unit or the village; and
	(b)	fails to keep the amount in a trust account on trust for the benefit of the resident or residents of the retirement village who gave the amount.
Maximum penalty:  540 penalty units.
	(2)	A scheme operator for a retirement village commits an offence if the operator—
	(a)	receives an amount for the cost of a capital improvement to an accommodation unit or the village; and
	(b)	uses the amount for a purpose other than the cost of the capital improvement.
Maximum penalty:  540 penalty units.
	(3)	A scheme operator for a retirement village commits an offence if—
	(a)	the amount received for the cost of a capital improvement to an accommodation unit or the village exceeds the cost of the capital improvement; and
	(b)	the scheme operator fails to refund the excess to the resident or  residents of the village who gave the amount.
Maximum penalty:  540 penalty units.
Division 8.2	Capital replacement fund
109	Meaning of capital replacement fund contribution
In this Act:
capital replacement fund contribution, for a retirement village, means the proportion of the ingoing contribution of a new resident of the village that is payable into the village’s capital replacement fund.
110	Meaning of capital replacement fund amount—div 8.2
In this division:
capital replacement fund amount—see section 113 (1).
111	Capital replacement funds
	(1)	A scheme operator for a retirement village must establish and keep a fund (the capital replacement fund) for replacing the village’s capital items.
Note	Capital item, in relation to a retirement village—see the dictionary.
	(2)	The scheme operator is solely responsible for contributing to the capital replacement fund.
112	Offence—failure to open and keep accounts
A scheme operator for a retirement village commits an offence if the operator fails to open and keep an account for capital replacement fund amounts that—
	(a)	includes the operator’s name and a description of the purpose for which the account is kept; and
	(b)	requires withdrawals from the account, whether by cheque or otherwise, to be signed by the operator.
Maximum penalty:  540 penalty units.
113	Payments into capital replacement funds
	(1)	A scheme operator for a retirement village must pay the following amounts (each of which is a capital replacement fund amount) into a capital replacement fund for the village:
	(a)	an amount received under an insurance policy in relation to capital items; 
	(b)	a capital replacement fund contribution;
	(c)	an amount paid by a resident under section 122 (Residents liable for replacing certain capital items);
	(d)	interest on a capital replacement fund amount.
Note	Capital item, in relation to a retirement village—see the dictionary.
	(2)	Subsection (1) does not limit the amounts a scheme operator may pay into a capital replacement fund.
114	Offences—payments into capital replacement funds
	(1)	A scheme operator for a retirement village commits an offence if the operator fails to pay a capital replacement fund amount into the capital replacement fund for the village.
Maximum penalty:  540 penalty units.
	(2)	A scheme operator for a retirement village commits an offence if the operator pays an amount into a capital replacement fund that the operator is required to pay into another fund.
Maximum penalty:  540 penalty units.
115	Offences—misuse of capital replacement fund amounts 
	(1)	A scheme operator for a retirement village commits an offence if the operator uses a capital replacement fund amount for a purpose other than 1 or more of the following:
	(a)	replacing the village’s capital items; 
	(b)	paying the reasonable fees for a report under section 117;
	(c)	paying tax on amounts paid into the capital replacement fund under section 113 (1) (d).
Maximum penalty:  540 penalty units.
Note	Capital item, in relation to a retirement village—see the dictionary.
	(2)	A scheme operator for a retirement village commits an offence if the operator uses a capital replacement fund amount for—
	(a)	the village’s capital improvement, maintenance or repairs; or
	(b)	capital replacement, maintenance or repairs of property owned by an owners corporation for a units plan in relation to the retirement village.
Maximum penalty:  540 penalty units.
	(3)	Subsection (2) does not limit subsection (1).
116	Charge created over capital replacement funds
	(1)	On the establishment of a capital replacement fund in relation to a retirement village, a charge is created over the fund for the benefit of the residents of the village to ensure that the balance of the fund is available for a purpose mentioned in section 115 (1).
	(2)	The charge has priority over any other charge over the capital replacement fund given by the scheme operator for the retirement village, other than a charge created and given priority over other charges under a Commonwealth law or another territory law.
	(3)	The charge is irrevocable, regardless of whether the scheme operator for the retirement village changes, and continues until the later of—
	(a)	the day the scheme for the village stops operating; and
	(b)	the day the last former resident to whom an exit entitlement is payable has been paid the exit entitlement.
117	Capital replacement reserve—reports
	(1)	Before a scheme operator for a retirement village decides a budget for the village, the operator must obtain a written report that complies with this section.
	(2)	The report must—
	(a)	be from an independent quantity surveyor; and 
	(b)	be about the expected costs for replacing the retirement village’s capital items for the period of 10 years following the date of the report.
Note	Capital item, in relation to a retirement village—see the dictionary.
	(3)	The scheme operator must obtain a full report in—
	(a)	the first financial year when the scheme operator is required to obtain a report; and 
	(b)	each 3rd financial year after the first report is obtained; and
	(c)	each financial year when a substantial change has been made to the retirement village. 
	(4)	The scheme operator must obtain an updated report in each financial year when a full report is not required.
	(5)	This section is subject to section 118.
118	Capital replacement reserve reports—independent quantity surveyor report not needed in certain circumstances
	(1)	This section applies if the total of the services charges collected in relation to a retirement village in the immediately preceding financial year is less than—
	(a)	the amount prescribed by regulation; or
	(b)	if no amount is prescribed—$50 000.
	(2)	The scheme operator for the retirement village need not obtain a report under section 117 from a independent quantity surveyor if the residents, by special resolution at a residents meeting, consent, but must, instead, prepare a report that otherwise complies with the section.
	(3)	The consent of the residents of a retirement village under subsection (2) remains in force until the earlier of—
	(a)	the day the total of the services charges collected in relation to the village is—
	(i)	the amount prescribed by the regulation or more; or
	(ii)	if no amount is prescribed by regulation—$50 000 or more; and
	(b)	the residents, by special resolution at a residents meeting, revoke the consent.
119	Offence—failure to obtain reports
	(1)	A scheme operator for a retirement village commits an offence if the operator fails to obtain a report under section 117 before the operator decides a budget for the village.
Maximum penalty:  540 penalty units.
	(2)	Subsection (1) does not apply if section 118 applies to a scheme operator.
Note	The scheme operator has an evidential burden in relation to the matters mentioned in s (2) (see Criminal Code, s 58).
120	Capital replacement reserve—amounts in reserve
	(1)	A scheme operator for a retirement village must decide the amount (the capital replacement reserve) to be held in a capital replacement fund for the village.
	(2)	In deciding the capital replacement reserve, the scheme operator must consider—
	(a)	the capital replacement fund’s purpose; and
	(b)	unless section 118 applies—a report (the quantity surveyor’s report) under section 117.
	(3)	In considering the quantity surveyor’s report, the scheme operator must use the operator’s best endeavours to carry out the recommendations in the report in the context of—
	(a)	the objects of this Act; and
	(b)	any circumstances relevant to the retirement village that appear to the operator not to have been considered in the quantity surveyor’s report.
	(4)	If, at any time, the amount a scheme operator must spend on replacing a capital item is more than the amount held in the capital replacement fund, the operator must pay the difference between the actual amount to be spent and the amount held in the capital replacement fund.
Note	Capital item, in relation to a retirement village—see the dictionary.
121	Capital replacement fund budgets
	(1)	A scheme operator for a retirement village must adopt a budget (a capital replacement fund budget) for the capital replacement fund for the village for each financial year.
	(2)	The capital replacement fund budget must—
	(a)	allow the scheme operator to raise a sufficient amount to—
	(i)	meet the necessary and reasonable costs to be paid from the capital replacement fund for a financial year; and
	(ii)	reserve an appropriate amount necessary to be accumulated to meet anticipated major expenditure over at least the 9 years following the financial year; and
	(b)	fix an amount to be raised by way of a capital replacement fund contribution to cover the amounts mentioned in paragraph (a).
Example
Replacing a village stand-by electricity generator is anticipated to be necessary in 3 years time at a cost currently estimated at $60 000. The contribution amount for the capital replacement fund in the budget for the financial year must therefore include the annual proportional share for its replacement of $20 000. The following year, the estimated cost increases to $68 000 and so the second year amount will be $24 000. The estimated cost in the third year is $70 000, so with the $44 000 accumulated, a further $26 000 is necessary to meet the cost.
Note	An example is part of the Act, is not exhaustive and may extend, but does not limit, the meaning of the provision in which it appears (see Legislation Act, s 126 and s 132).
	(3)	The residents of a retirement village may, by agreement at a residents meeting, ask the scheme operator for the village for a copy of the draft capital replacement fund budget.
	(4)	The request under subsection (3) must be made in writing at least 30 days before the start of the financial year to which the draft capital replacement fund budget relates.
	(5)	If the residents make a request under subsection (3), the scheme operator for the retirement village must give a copy of the draft capital replacement budget, at least 14 days before the start of the financial year to which the budget relates, to—
	(a)	the residents committee for the village; or
	(b)	if there is no residents committee—each resident of the village.
122	Residents liable for replacing certain capital items
If a resident of a retirement village does any of the following in relation to a capital item of the retirement village, the resident is responsible for replacing the item:
	(a)	deliberately damages the item; 
	(b)	subjects the item to wear that happens more quickly than would reasonably be expected.
Note	Capital item, in relation to a retirement village—see the dictionary.
123	Residents may carry out urgent work
	(1)	A resident of a retirement village may repair or replace (the work) a capital item in relation to the retirement village only—
	(a)	if the work is urgent; and
	(b)	after the resident gives the scheme operator for the village a reasonable opportunity to carry out the work.
	(2)	A resident who carries out work under subsection (1) is entitled to be reimbursed by the scheme operator for the reasonable costs incurred by the resident in carrying out the work.
	(3)	If the scheme operator does not reimburse the resident within a reasonable time of the resident seeking 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.
	(5)	In this section:
urgent—work 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 an accommodation unit;
	(i)	a failure or breakdown of any essential service in relation to an accommodation unit for hot water, heating or laundering;
	(j)	any fault or damage that causes the retirement village or an accommodation unit to be unsafe or insecure;
	(k)	anything else prescribed by regulation.
Division 8.3	Maintenance reserve fund
124	Meaning of maintenance reserve fund contribution
In this Act:
maintenance reserve fund contribution means the proportion of the general services charge of a new resident of a retirement village that is payable into the village’s maintenance reserve fund.
125	Meaning of maintenance reserve fund amount—div 8.3
In this division:
maintenance reserve fund amount—see section 128 (1).
126	Maintenance reserve funds
	(1)	A scheme operator for a retirement village must establish and keep a fund (the maintenance reserve fund) for maintaining and repairing the village’s capital items.
Note	Capital item, in relation to a retirement village—see the dictionary.
	(2)	The residents of the retirement village are solely responsible for contributing to the maintenance reserve fund.
127	Offence—failure to open and keep accounts
A scheme operator for a retirement village commits an offence if the operator fails to open and keep an account for maintenance reserve fund amounts that—
	(a)	includes the operator’s name and a description of the purpose for which the account is kept; and
	(b)	requires withdrawals from the account, whether by cheque or otherwise, to be signed by the scheme operator.
Maximum penalty:  540 penalty units.
128	Payments into maintenance reserve funds
	(1)	A scheme operator for a retirement village must pay the following amounts (each of which is a maintenance reserve fund amount) into a maintenance reserve fund for the village:
	(a)	a maintenance reserve fund contribution;
	(b)	interest on a maintenance reserve fund amount.
	(2)	Subsection (1) does not limit the amounts a scheme operator may pay into a maintenance reserve fund.
129	Offences—payments into maintenance reserve funds 
	(1)	A scheme operator for a retirement village commits an offence if the operator fails to pay a maintenance reserve fund amount into the maintenance reserve fund for the village.
Maximum penalty:  540 penalty units.
	(2)	A scheme operator for a retirement village commits an offence if the operator pays an amount into a maintenance reserve fund that the operator is required to pay into another fund.
Maximum penalty:  540 penalty units.
130	Offences—misuse of maintenance reserve fund amounts 
	(1)	A scheme operator for a retirement village commits an offence if the operator uses a maintenance reserve fund amount for a purpose other than 1 or more of the following:
	(a)	maintaining and repairing the village’s capital items; 
	(b)	paying the reasonable fees for a report under section 132 (Maintenance reserve—reports);
	(c)	paying tax on amounts paid into the maintenance reserve fund under section 128 (1) (b).
Maximum penalty:  540 penalty units.
Note	Capital item, in relation to a retirement village—see the dictionary.
	(2)	A scheme operator for a retirement village commits an offence if the operator uses a maintenance reserve fund amount for—
	(a)	the day-to-day maintenance of the village; or
	(b)	the improvement or replacement of capital items of the village; or
	(c)	capital replacement, maintenance or repairs of property owned by an owners corporation for a units plan in relation to the village.
Maximum penalty:  540 penalty units.
	(3)	Subsection (2) does not limit subsection (1).
131	Charge created over maintenance reserve funds
	(1)	On the establishment of a maintenance reserve fund in relation to a retirement village, a charge is created over the fund for the benefit of the residents of the village to ensure that the balance of the fund is available for a purpose mentioned in section 130 (1).
	(2)	The charge has priority over any other charge over the maintenance reserve fund given by the scheme operator for the retirement village, other than a charge created and given priority over other charges under a Commonwealth law or another territory law.
	(3)	The charge is irrevocable, regardless of whether the scheme operator for the retirement village changes, and continues until the later of—
	(a)	the day the scheme for the retirement village stops operating; and
	(b)	the day the last former resident to whom an exit entitlement is payable has been paid the exit entitlement.
132	Maintenance reserve—reports
	(1)	Before a scheme operator for a retirement village decides a budget for the village, the scheme operator must obtain a written report that complies with this section.
	(2)	The report must—
	(a)	be from an independent quantity surveyor; and 
	(b)	be about the expected costs for maintaining and repairing the capital items of the retirement village for the next 10 years.
Note	Capital item, in relation to a retirement village—see the dictionary.
	(3)	The scheme operator must obtain a full report in—
	(a)	the first financial year when the operator is required to obtain a report; and 
	(b)	each 3rd financial year after the first report is obtained; and
	(c)	each financial year when a substantial change has been made to the retirement village. 
	(4)	The scheme operator must obtain an updated report in each financial year when a full report is not required.
133	Maintenance reserve reports—independent quantity surveyor report not needed in certain circumstances
	(1)	This section applies if the total of the services charges collected in relation to a retirement village in the immediately preceding financial year is less than—
	(a)	the amount prescribed by regulation; or
	(b)	if no amount is prescribed—$50 000.
	(2)	The scheme operator for the retirement village need not obtain a report under section 132 from a independent quantity surveyor if the residents, by special resolution at a residents meeting, consent, but must, instead, prepare a report that otherwise complies with the section.
	(3)	The consent of the residents of a retirement village under subsection (2) remains in force until the earlier of—
	(a)	the day the total of the services charges collected in relation to the village is—
	(i)	the amount prescribed by the regulation or more; or
	(ii)	if no amount is prescribed by regulation—$50 000 or more; and
	(b)	the residents, by special resolution at a residents meeting, revoke the consent.
134	Offence—failure to obtain reports
	(1)	A scheme operator for a retirement village commits an offence if the operator fails to obtain a report under section 132 before the operator decides a budget for the village.
Maximum penalty:  540 penalty units.
	(2)	Subsection (1) does not apply if section 133 applies to a scheme operator.
Note	The scheme operator has an evidential burden in relation to the matters mentioned in s (2) (see Criminal Code, s 58).
135	Maintenance reserve—amounts in reserve
	(1)	A scheme operator for a retirement village must decide the amount (the maintenance reserve) to be held in a maintenance reserve fund for the village.
	(2)	In deciding the maintenance reserve, the scheme operator for the retirement village must consider—
	(a)	the maintenance reserve fund’s purpose; and
	(b)	unless section 133 applies—a report (the quantity surveyor’s report) obtained under section 132.
	(3)	In considering the quantity surveyor’s report, the scheme operator must use the operator’s best endeavours to carry out the recommendations in the report in the context of—
	(a)	the objects of this Act; and
	(b)	any circumstances relevant to the retirement village that appear to the operator not to have been considered in the report.
	(4)	If, at any time, the amount a scheme operator must spend on maintaining and repairing capital items of the retirement village is more than the amount held in the maintenance reserve fund, the operator must pay the difference between the actual amount to be spent and the amount held in the maintenance reserve fund.
Note	Capital item, in relation to a retirement village—see the dictionary.
	(5)	An amount paid under subsection (4) is to be treated as an interest‑free loan from the scheme operator to the maintenance reserve fund.
136	Maintenance reserve fund budgets
	(1)	A scheme operator for a retirement village must adopt a budget (a maintenance reserve fund budget) for the maintenance reserve fund for the village for each financial year.
	(2)	The maintenance reserve fund budget must—
	(a)	allow the scheme operator to raise a sufficient amount to—
	(i)	meet the necessary and reasonable costs to be paid from the maintenance reserve fund for a financial year; and
	(ii)	reserve an appropriate amount necessary to be accumulated to meet anticipated major expenditure over at least the 9 years following the financial year; and
	(b)	fix an amount to be raised by way of a maintenance reserve fund contribution to cover the amounts mentioned in paragraph (a).
Example
Painting village property is anticipated to be necessary in 3 years time at a cost currently estimated at $3 000. The contribution amount for the maintenance reserve fund in the budget for the financial year must therefore include the annual proportional share for painting of $1 000. The following year, the estimated cost increases to $3 400 and so the second year levy will be $1 200. The estimated cost in the third year is $3 500, so with the $2 200 accumulated, a levy of $1 300 is necessary to meet the cost.
Note	An example is part of the Act, is not exhaustive and may extend, but does not limit, the meaning of the provision in which it appears (see Legislation Act, s 126 and s 132).
	(3)	The residents of a retirement village may, by agreement at a residents meeting, ask the scheme operator for the village for a copy of the draft maintenance reserve fund budget.
	(4)	The request under subsection (3) must be made in writing at least 30 days before the start of the financial year to which the draft maintenance reserve fund budget relates.
	(5)	If the residents make a request under subsection (3), the scheme operator for the retirement village must give a copy of the draft maintenance reserve fund budget, at least 14 days before the start of the financial year to which the budget relates, to—
	(a)	the residents committee for the village; or
	(b)	if there is no residents committee—each resident of the village.
Division 8.4	Services charges
137	Meaning of general services charge budget
In this Act:
general services charge budget—see section 139 (1). 
138	Meaning of general services charge—div 8.4
In this division:
general services charge, for a retirement village, means a charge payable by a resident of the retirement village for general services under a residence contract.
139	General services charge budget
	(1)	A scheme operator for a retirement village must adopt a budget (the general services charge budget) for the general services charge for each financial year.
	(2)	The general services charge budget must—
	(a)	allow for a reasonable amount of money to be raised to provide the general services for a financial year; and
	(b)	fix an amount to be raised by way of contribution by residents of the village to cover the amount.
	(3)	The residents of a retirement village may, by agreement at a residents meeting, ask the scheme operator for the village for a copy of the draft general services charge budget.
	(4)	The request under subsection (3) must be made in writing at least 30 days before the start of the financial year to which the draft general services charge budget relates.
	(5)	If the residents make a request under subsection (3), the scheme operator for the village must give a copy of the draft general services charge budget, at least 14 days before the start of the financial year to which the budget relates, to—
	(a)	the residents committee for the village; or
	(b)	if there is no residents committee—each resident of the village.
	(6)	If, at the end of a financial year for which a general services charge budget is adopted, there is a surplus or deficit for the general services charge, the surplus or deficit must be carried forward and taken into account in adopting the general services charge budget for the next financial year.
140	Offences—working out and paying general services charge
	(1)	A scheme operator for a retirement village commits an offence if the operator charges a resident of the village an amount for a general services charge worked out other than in the way stated in the public information document in relation to the scheme for the village.
Maximum penalty:  200 penalty units.
	(2)	A scheme operator for a retirement village commits an offence if the operator, in a general services charge in a residence contract, includes, or provides for, an amount (however described) that is payable in relation to replacing the retirement village’s capital items.
Maximum penalty:  200 penalty units.
	(3)	A scheme operator for a retirement village commits an offence if the operator, in a general services charge in a residence contract, includes, or provides, for an amount (however described) that is payable in relation to costs awarded by the ACAT against the operator. 
Maximum penalty:  200 penalty units.
	(4)	Subsections (1) and (2) do not apply to an amount that a scheme operator includes, or provides for in a general services charge that is indirectly or directly attributable to GST payable for the supply of a service. 
	(5)	In this section:
supply has the meaning given by the A New Tax System (Goods and Services Tax) Act 1999 (Cwlth).
141	Responsibility of residents for general services charge
	(1)	A resident of a retirement village is responsible for only the resident’s proportion of the general services charge for the period that the resident lives in the resident’s accommodation unit.
	(2)	This section is subject to section 142.
142	Working out and paying general services charge for former residents
	(1)	A former resident of a retirement village is liable for the resident’s proportion of the general services charge after the resident vacates the resident’s accommodation unit until the first of the following happens:
	(a)	the right to live in the accommodation unit is sold; 
	(b)	a period of 90 days elapses (the 90-day period);
	(c)	the ACAT orders the scheme operator for the village to pay the former resident’s exit entitlement under section 208 (ACAT orders—payment of exit entitlement).
	(2)	If the former resident’s right to live in the accommodation unit has not been sold during the 90-day period—
	(a)	the resident and the scheme operator are each liable, after the 90-day period ends, to pay the general services charge in the same proportion as they are to share the gross ingoing contribution on the sale of the right to live in the accommodation unit, as provided for in the residence contract; and
	(b)	the former resident stops being liable to continue to pay a proportion of the general services charge when the first of the following happens:
	(i)	the right to live in the accommodation unit is sold;
	(ii)	a period of 6 months after the resident vacates the accommodation unit ends.
	(3)	If a former resident’s right to live in an accommodation unit has not been sold during the 90-day period, the scheme operator may—
	(a)	accrue, as a book debt, the resident’s proportion of the general services charge; and
	(b)	set off the accrued amount against the resident’s exit entitlement.
143	Offence—no interest on accrued amounts
A scheme operator for a retirement village commits an offence if the operator charges interest on an amount accrued under section 142 (3).
Maximum penalty:  100 penalty units.
144	Offence—failure to pay general services charge for unsold right to live in accommodation units
A scheme operator for a retirement village commits an offence if—
	(a)	the operator does not pay the proportion of the general services charge relating to the right to live in an accommodation unit in the village; and
	(b)	1 of the following applies:
	(i)	an accommodation unit has not been occupied under a residence contract; 
	(ii)	the liability of the former resident of the accommodation unit to pay a proportion of the general services charge has ended under—
	(A)	section 142 (3); or
	(B)	the terms of the residence contract for the accommodation unit; 
	(iii)	no residence contract is in force for the accommodation unit. 
Maximum penalty:  200 penalty units.
145	Scheme operators paying general services charge
The scheme operator for a retirement village must pay an amount payable under section 144 into the maintenance reserve fund for the village.
146	Offence—increasing general services charge by more than CPI
	(1)	A scheme operator for a retirement village commits an offence if the operator increases the total of the general services charge for the village for a financial year by more than the CPI percentage increase for the financial year.
Maximum penalty:  200 penalty units.
	(2)	Subsection (1) does not apply if—
	(a)	the residents of the retirement village, by special resolution at a residents meeting, approve an increase of more than the CPI percentage increase for the financial year; or
	(b)	the increase is attributable to an increase in—
	(i)	rates, taxes or charges levied under a Commonwealth law or another territory law in relation to the retirement village land or its use; or
	(ii)	the salary or wages of a person engaged in the village’s operation and payable under an award, industrial agreement or workplace determination under the Fair Work Act 2009 (Cwlth) made, approved, certified, or continued in force under a Commonwealth law or another territory law; or
	(iii)	insurance premiums, or insurance excesses paid, in relation to the retirement village or its use; or
	(iv)	maintenance reserve fund contributions.
Examples—industrial agreement
enterprise agreement, fair work instrument
Note 1	A reference to an Act includes a reference to the statutory instruments made or in force under the Act, including regulations (see Legislation Act, s 104).
Note 2	The scheme operator has an evidential burden in relation to the matters mentioned in s (2) (see Criminal Code, s 58).
Note 3	An example is part of the Act, is not exhaustive and may extend, but does not limit, the meaning of the provision in which it appears (see Legislation Act, s 126 and s 132).
	(3)	In this section:
CPI means the all groups consumer price index for Canberra published by the Australian statistician.
CPI percentage increase, for a financial year, means the percentage increase between—
	(a)	the CPI published for the quarter ending immediately before the start of the financial year; and
	(b)	the CPI published for the quarter ending immediately before the end of the financial year.
total of general services charge, for a financial year, means the sum of all charges for general services for the financial year, other than the following charges:
	(a)	a charge for a general service that has been increased by more than the CPI percentage increase for the financial year and that the residents of a retirement village, by special resolution at a residents meeting, have approved;
	(b)	a charge for a general service that has been increased by more than the CPI percentage increase for the financial year and that is allowed under subsection (2).
147	Cost-effective alternatives for services
Before increasing the charge for a particular general service for a retirement village, the scheme operator for the village must consider whether there is a more cost‑effective alternative to the general service.
148	No liability for failing to supply goods or services
A scheme operator for a retirement village is not civilly liable for failing to supply goods or services to residents of the village if—
	(a)	the cost of the supply of the goods and services would require an increase in the general services charge that is more than the increase allowed under section 146; and
	(b)	the operator considered whether there was a more cost‑effective alternative to the general service.
Note	A scheme operator for a retirement village is also not liable for breach of a residence contract for failure to supply a general service if the residents of the village did not agree to an increase in the general service charge to cover the cost of the service (see s 64).
149	Supplying new general services
	(1)	A scheme operator for a retirement village may offer residents of the village a service not already supplied under the scheme for the village for which a general services charge is payable only if—
	(a)	the residents agree, by special resolution at a residents meeting, to the service being supplied; and
	(b)	the service is not 1 of the following:
	(i)	a personal service; 
	(ii)	a service that is the same as a service already supplied under the scheme and introduced as a cost-effective alternative under section 147; 
	(iii)	if the public information document for the village states that another service is proposed to be supplied—that service.
	(2)	Before supplying a new service, the scheme operator must obtain quotations for the supply of the service in accordance with section 150.
	(3)	If any capital improvements to the retirement village are required for the scheme operator to supply the service, the operator may supply the service only if the capital improvements are requested by the residents of the village under section 104 (Responsibility of residents for capital improvement—retirement villages).
	(4)	The scheme operator must not charge a resident for a new service before the service is supplied to the resident.
150	Quotations for new services
	(1)	This section applies if a scheme operator for a retirement village offers to supply a new service to residents of the village.
	(2)	The scheme operator must, at the operator’s expense, obtain at least 2 quotations from people who the operator is satisfied have the experience or expertise to qualify the people to provide the services.
	(3)	However, the scheme operator need not obtain 2 quotations if satisfied on reasonable grounds that it is not practicable to obtain more than 1 quotation. 
	(4)	The scheme operator must, as soon as practicable after obtaining a quotation, give a copy of the quotation to—
	(a)	the residents committee for the village; or
	(b)	if there is no residents committee—each resident of the village.
	(5)	If it is not practicable for the scheme operator to give a copy of the quotation under subsection (4), the scheme operator must give a summary of the quotation and details about where the complete quotation may be inspected.
151	Charging residents for personal services during temporary absences
	(1)	This section applies to a resident of a retirement village who—
	(a)	receives personal services under a residence contract; and
	(b)	is temporarily absent from the village for more than 28 consecutive days (the 28-day period).
	(2)	The resident is not liable to pay for personal services for a period of absence following the 28-day period.
152	Offences—charging former residents for personal services
	(1)	A scheme operator for a retirement village commits an offence if—
	(a)	a resident of the village receives personal services under a residence contract; and
	(b)	the resident’s residence contract is ended under 1 of the following sections (the ending provision):
	(i)	section 51 (Ending residence contracts—residents);
	(ii)	section 53 (Ending residence contracts—scheme operators); and
	(c)	the operator charges the resident for personal services after—
	(i)	if the period of the notice given under the ending provision is extended—the end of the extended period of notice; or
	(ii)	in any other case—the end of the period of notice given under the ending provision.
Maximum penalty:  540 penalty units.
	(2)	A scheme operator for a retirement village commits an offence if—
	(a)	a resident of the village receives personal services under a residence contract; and
	(b)	the resident’s residence contract ends because the resident dies; and
	(c)	the operator charges the resident for personal services for more than 28 days after the residence contract ends.
Maximum penalty:  540 penalty units.
Division 8.5	Insurance
153	Meaning of building—div 8.5
In this division:
building, on retirement village land—
	(a)	includes—
	(i)	any improvements and fixtures forming part of the building; and
	(ii)	any improvements and fixtures, including site improvements, consisting entirely of common property; and
	(iii)	anything prescribed by regulation as forming part of a building; but
Examples—site improvements
landscaping, paved areas
Note	An example is part of the Act, is not exhaustive and may extend, but does not limit, the meaning of the provision in which it appears (see Legislation Act, s 126 and s 132).
	(b)	does not include—
	(i)	paint, wallpaper and temporary wall, floor and ceiling coverings; or
	(ii)	fixtures removable by a resident of an accommodation unit at the end of a residence contract; or
	(iii)	anything prescribed by regulation as not forming part of a building.
154	Building insurance by scheme operators
	(1)	A scheme operator for a retirement village must insure and keep insured all buildings on the retirement village land for their replacement value from time to time against all of the following risks:
	(a)	fire, lightning, tempest, earthquake and explosion;
	(b)	riot, civil commotion, strikes and labour disturbances;
	(c)	malicious damage;
	(d)	bursting, leaking and overflowing of boilers, water tanks, water pipes and associated apparatus;
	(e)	impact of aircraft (including parts of, and objects falling from, aircraft) and of road vehicles, horses and cattle;
	(f)	anything prescribed by regulation.
	(2)	However, the scheme operator need not insure and keep insured all buildings on retirement village land in a units plan.
Note	An owners corporation must insure and keep insured all buildings on land in a units plan under the Unit Titles (Management) Act 2011.
	(3)	The scheme operator commits an offence if the operator fails to take out an insurance policy that covers, to the greatest practicable extent—
	(a)	the risks mentioned in subsection (1); and
	(b)	costs incidental to the reinstatement or replacement of the insured building, including the cost of removing debris and the fees of architects and other professional advisers.
Maximum penalty:  540 penalty units.
	(4)	Subsection (2) does not apply to buildings on retirement village land in a units plan in relation to the village if the owners corporation for the units plan has insured, and is keeping insured, the buildings in accordance with the requirements for insurance under the Unit Titles (Management) Act 2011, section 100 (Building insurance by owners corporation).
Note	The defendant has an evidential burden in relation to the matters mentioned in s (3) (see Criminal Code, s 58).
	(5)	A regulation may make provision in relation to an insurance policy required to be taken out by the scheme operator under this section including for the following:
	(a)	payment by residents of any excess payable under the policy;
	(b)	combining the policy with other insurance policies;
	(c)	notification requirements by residents in relation to improvements made to units;
	(d)	valuation of the insured buildings. 
	(6)	For all purposes related to any insurance taken out by it under this section, a scheme operator for a retirement village is taken to have an insurable interest in the buildings on the retirement village land to the extent of their replacement value.
155	Public liability insurance by scheme operators
	(1)	A scheme operator for a retirement village commits an offence if the operator fails to take out and maintain public liability insurance in relation to all of the following events happening in relation to the retirement village or the retirement village land:
	(a)	death, bodily injury or illness of anyone;
	(b)	loss of, or damage to, the property of anyone.
Maximum penalty:  540 penalty units.
	(2)	Subsection (1) does not apply in relation to land that is common property in a units plan in relation to the retirement village if the owners corporation for the units plan has taken out and is maintaining insurance required under the Unit Titles (Management) Act 2011, section 102 (Public liability insurance by owners corporation) in relation to the common property.
Note	The scheme operator has an evidential burden in relation to the matters mentioned in s (2) (see Criminal Code, s 58).
	(3)	Public liability insurance under subsection (1) must be for a total amount of liability of not less than an amount prescribed by regulation.
156	Application of insurance money by owners corporation
	(1)	If a scheme operator for a retirement village receives insurance money for damage to, or destruction of, any building on the retirement village land, the operator must, without delay, apply the insurance money to rebuilding and reinstating the building.
	(2)	Subsection (1) applies subject to this Act, other territory laws and any order of a court.
157	Insurance information
	(1)	On request by a resident of a retirement village, the scheme operator for the village must, within 14 days after the request is received, allow the resident to inspect, and take a copy of—
	(a)	any current insurance policy or policies taken out by the operator for the village; or
	(b)	the receipts for all premiums paid under current policies taken out by the operator for the village.
	(2)	The scheme operator must not charge the resident a fee in relation to inspecting or copying documents under subsection (1). 
158	Additional insurance—scheme operator
This division does not limit the right of a scheme operator to take out additional insurance.
159	Additional insurance—residents
This division does not limit the right of a resident who owns an accommodation unit to insure against damage to, or destruction of, the unit to the extent of its replacement value.
Division 8.6	Financial accounts and statements 
160	Offence—scheme operator must keep separate accounts for capital replacement fund and maintenance reserve fund
A scheme operator for a retirement village must keep separate accounts for the village’s capital replacement fund and maintenance reserve fund.
Maximum penalty:  540 penalty units.
161	Offences—failure to give quarterly financial statements etc
	(1)	A scheme operator for a retirement village commits an offence if the operator fails to give, not later than 28 days after the end of each quarter, a quarterly financial statement in a form that can be audited to—
	(a)	the residents committee for the village; or
	(b)	if there is no residents committee—each resident of the village.
Maximum penalty:  540 penalty units.
	(2)	Subsection (1) does not apply if section 159 applies to the scheme operator for a retirement village.
Note	The scheme operator has an evidential burden in relation to the matters mentioned in s (2) (see Criminal Code, s 58).
	(3)	A scheme operator for a retirement village commits an offence if—
	(a)	the residents of the village give the operator a written request for an explanatory document; and
	(b)	the operator fails to give, not later than 28 days after the day the operator receives the request, an explanatory document to—
	(i)	the residents committee for the village; or
	(ii)	if there is no residents committee—each resident of the village.
Maximum penalty:  100 penalty units.
	(4)	In this section:
explanatory document means a document that explains—
	(a)	the expenditure involved in supplying each general service; and
	(b)	any increase in the expenditure involved in supplying a general service that differs from the expected expenditure for the general service in the general services charge budget.
quarterly annual statement means a statement that lists, for the quarter—
	(a)	the income of, and expenditure from—
	(i)	the capital replacement fund; and
	(ii)	the maintenance reserve fund; and
	(b)	the expenditure involved in supplying each general service.
162	Quarterly financial statements need not be given to residents in certain circumstances 
	(1)	This section applies if the total of the services charges collected in relation to a retirement village in the preceding 4 quarters is less than—
	(a)	the amount prescribed by regulation; or
	(b)	if no amount is prescribed—$50 000; and
	(2)	A scheme operator for a retirement village need not give the residents of the village a copy of quarterly financial statements for the village under section 161 if the residents, by special resolution at a residents meeting, consent.
	(3)	The consent of the residents of a retirement village under subsection (2) remains in force until the earlier of—
	(a)	the total of the services charges collected in relation to the village is—
	(i)	the amount prescribed by the regulation or more; or
	(ii)	if no amount is prescribed by regulation—$50 000 or more; and
	(b)	the residents, by special resolution at a residents meeting, revoke the consent.
163	Preparing annual financial statements
	(1)	A scheme operator for a retirement village must prepare, for each financial year, a financial statement in relation to the village that—
	(a)	shows the following details about the village’s operation:
	(i)	income and expenditure of the capital replacement fund for the financial year;
	(ii)	income and expenditure of the maintenance reserve fund for the financial year;
	(iii)	expenditure involved in supplying each general service for the financial year;
	(iv)	amounts received for insurance claims relating to the village during the financial year;
	(v)	assets and liabilities relating to the village as at the end of the financial year;
	(vi)	interests, mortgages and other charges affecting the village’s property as at the end of the financial year; and
	(b)	is audited and prepared in accordance with generally accepted accounting principles.
	(2)	This section is subject to section 164.
164	Annual financial statements need not be audited in certain circumstances
	(1)	This section applies to a financial statement prepared in relation to a retirement village under section 163 for a financial year if the total of the services charges collected in relation to the village for the financial year are less than—
	(a)	the amount prescribed by regulation; or
	(b)	if no amount is prescribed—$50 000.
	(2)	The scheme operator for the retirement village—
	(a)	need not have the financial statement audited if the residents, by special resolution at a residents meeting, consent; but
	(b)	must instead include a statement about whether the operator will be able to meet the liabilities relating to the village when they become due during the financial year immediately following.
Note	Giving false or misleading information and producing false or misleading documents are offences against the Criminal Code, s 338 and s 339.
	(3)	The residents’ consent under subsection (2) remains in force until the earlier of—
	(a)	the day the total of the services charges collected in relation to the village is—
	(i)	the amount prescribed by regulation or more; or
	(ii)	if no amount is prescribed by regulation—$50 000 or more; and
	(b)	the residents, by special resolution at a residents meeting, revoke the consent.
165	Offences—failure to give annual financial statements
	(1)	A scheme operator for a retirement village commits an offence if the operator fails to give the commissioner for fair trading, not later than 5 months after the end of each financial year, a financial statement for the village.
Maximum penalty:  200 penalty units.
	(2)	A scheme operator for a retirement village commits an offence if the operator fails to give the residents committee for the village, within 5 months after the end of the financial year, a copy of a financial statement for the village.
Maximum penalty:  200 penalty units.
	(3)	Subsection (2) does not apply if there is no residents committee for a retirement village.
	(4)	In this section:
financial statement means a statement prepared in accordance with section 163. 
166	Classification of expenditure
	(1)	A regulation may prescribe model rules (the model classification rules) about the classification of items of expenditure.
	(2)	Without limiting subsection (1), the model classification rules may—
	(a)	classify how a particular item of expenditure must be dealt with; and
	(b)	provide that scheme operators must classify how other items of expenditure must be dealt with.
	(3)	A scheme operator for a retirement village must comply with the model classification rules in dealing with items of expenditure in relation to the village.
	(4)	If the model classification rules provide that a scheme operator for a retirement village must classify how other items of expenditure must be dealt with, the operator must give the residents of the village written notice of the operator’s classification of the items of expenditure by—
	(a)	giving the notice to the residents committee; or
	(b)	if there is no residents committee—putting the notice in a place in the village where it is likely to be seen by most of the village’s residents.
	(5)	For this section, an item of expenditure is dealt with if it is—
	(a)	debited to the capital replacement fund; or
	(b)	debited to the maintenance reserve fund; or
	(c)	levied as a general service charge.

Part 9	Charges created over retirement village land to protect residents’ rights
Division 9.1	Preliminary
167	Meaning of resident—pt 9
In this part:
resident, of a retirement village, does not include a person who owns an accommodation unit in the village.
Note	Own—see the dictionary.
Division 9.2	Creating charges over retirement village land 
168	Creating charges over retirement village land
	(1)	On the commissioner for fair trading registering a scheme for a retirement village, a charge is created over the retirement village land to which the scheme relates.
	(2)	As soon as practicable after the scheme for the retirement village is registered, the commissioner for fair trading must lodge a memorandum of the charge over the land with the registrar-general for registration under the Land Titles Act 1925. 
	(3)	The memorandum must—
	(a)	identify the retirement village land; and
	(b)	state the day when the scheme for the retirement village was registered.
Note	The registrar-general must register an instrument lodged in registrable form (see Land Titles Act 1925, s 48 (1)).
	(4)	However, the commissioner for fair trading may exempt a scheme from subsection (1) if—
	(a)	if the scheme operator is an organisation established for a religious, charitable or community purpose—the commissioner is satisfied that the scheme operator is of good standing in operating schemes for retirement villages; or
	(b)	in any other case—
	(i)	the commissioner is satisfied that other exceptional circumstances exist; and 
	(ii)	the scheme operator provides another form of security to secure the rights under a residence contract of a resident in the village.
	(5)	An exemption is a notifiable decision.
Note	A notifiable instrument must be notified under the Legislation Act.
169	Charges extend to new land
	(1)	This section applies if land (the new land) becomes retirement village land of a retirement village after a charge on the original retirement village land (the original land) for the retirement village is created under section 168.
	(2)	On the new land becoming retirement village land—
	(a)	the charge over the original land is released; and 
	(b)	a charge is created over the original land and the new land.
	(3)	The scheme operator for a retirement village must give the commissioner for fair trading written notice that new land has become retirement village land not later than 1 month after the day the new land becomes retirement village land.
	(4)	As soon as practicable after receiving the notice under subsection (3), the commissioner for fair trading must lodge a memorandum of the change to the retirement village land with the registrar-general for registration under the Land Titles Act 1925.
Note	The registrar-general must register an instrument lodged in registrable form (see Land Titles Act 1925, s 48 (1)).
	(5)	The memorandum must—
	(a)	identify the retirement village land; and
	(b)	state the day when the new land became retirement village land.
170	Offence—failure to give notice of new land
A scheme operator for a retirement village commits an offence if the scheme operator fails to give the commissioner for fair trading written notice under section 169 (3).
Maximum penalty:  540 penalty units.
171	Effect of charges 
A charge over retirement village land under this part secures the right of each resident of the retirement village on the land—
	(a)	to occupy the resident’s accommodation unit; and
	(b)	to use the village’s communal and recreational facilities; and
	(c)	to be paid the exit entitlement the resident is entitled to under the resident’s residence contract when the contract ends.
172	Priority of charges 
	(1)	A charge lodged with the registrar-general under this division has priority over all other registered securities in or over the retirement village land to which the charge relates, whether or not the security was registered before the statutory charge was notified to the registrar-general.
	(2)	However, a charge does not have priority over a charge created, and given priority over other charges, under a Commonwealth law or another territory law.
	(3)	In this section:
registered, for a security, means registered under the Land Titles Act 1925. 
Division 9.3	Enforcing charges over land
173	Enforcing charges 
	(1)	This section applies if—
	(a)	retirement village land is subject to a charge under section 168 (Creating charges over retirement village land) or section 169 (Charges extend to new land); and
	(b)	a court or tribunal orders an amount be paid by the scheme operator for the retirement village on the retirement village land to a resident of the village in relation to a right of the resident mentioned in section 171 (the original order); and
	(c)	the amount is not paid within 6 months after the end of the day by which it was required to be paid under the original order.
	(2)	The person in whose favour the original order was made may apply to a court of competent jurisdiction for an order that the retirement village land be sold.
	(3)	However, a person may make an application under subsection (2) only if—
	(a)	the person has given the commissioner for fair trading written notice of the person’s intention to make the application; and
	(b)	for an amount payable under the original order by way of an exit entitlement, the amount is at least $10 000 or another higher amount prescribed by regulation.
	(4)	Each resident of the retirement village, and anyone else who appears to the court to have a sufficient interest in the application, is entitled—
	(a)	to be joined as a party to the proceeding; and
	(b)	to be heard on the application.
	(5)	Unless the court orders otherwise, the applicant must give each resident notice of the resident’s right to be heard on the application.
174	Orders court may make 
	(1)	On hearing an application under section 173 (2), the court may order the retirement village land be sold only if the court is satisfied that—
	(a)	the original order is unsatisfied and is not likely to be satisfied in any other way open to the applicant; and
	(b)	it is not contrary to the interests of any resident of the retirement village that the land be sold.
	(2)	Without limiting the orders it may make, the court may appoint a person to act as the seller’s agent for the sale.
175	Effect of court orders 
	(1)	An order for the sale of retirement village land under section 174—
	(a)	authorises the sale of the land free of all existing securities, other than the securities the court preserves in its order; and
	(b)	has effect despite—
	(i)	an existing caveat or lien affecting the land; or
	(ii)	any Act, other than this Act.
	(2)	A person appointed as the seller’s agent under section 174 (2) has the power to convey the land to a purchaser and do all things necessary to effect the conveyance.
	(3)	On settlement, the seller is to apply the sale proceeds in the following order:
	(a)	paying the sale costs and the applicant’s costs in seeking the order for sale;
	(b)	paying amounts payable under securities ranking in priority to the charge;
	(c)	satisfying the original order;
	(d)	paying exit entitlements payable to residents if, because of the court order, the retirement village scheme stops operating or the residence contracts under the scheme end;
	(e)	paying amounts payable under securities ranking in priority after the charge;
	(f)	paying the balance to the person who owned the retirement village land immediately before the sale, or to someone else at the person’s direction.
	(4)	For ensuring compliance with subsection (3) (d), the seller must take reasonable steps to locate any former resident to whom an exit entitlement is payable. 
Division 9.4	Extinguishing and releasing charges over land
176	Extinguishing charges 
	(1)	A charge created over retirement village land under this part is extinguished on the earlier of—
	(a)	its release by the commissioner for fair trading under section 178 (Commissioner for fair trading to release charge); and
	(b)	the sale of the land under a court order under section 174 (Orders court may make).
	(2)	However, subsection (1) (b) does not apply if—
	(a)	the land continues, or is to continue, to be used under a registered scheme for a retirement village; and
	(b)	under the residence contracts in relation to the village, a person does not obtain a leasehold interest in the retirement village land.
177	Scheme operator may ask for release of charge if land stops being retirement village land 
	(1)	A scheme operator for a retirement village may ask the commissioner for fair trading to release the charge over the retirement village land on which the retirement village is located if—
	(a)	the land stops being retirement village land; or
	(b)	the scheme operator proposes to stop using the land for a retirement village.
	(2)	A request under subsection (1) must be in writing.
	(3)	The scheme operator must also—
	(a)	give each resident of the retirement village a written notice stating—
	(i)	that the scheme operator has asked the commissioner for fair trading to release the charge over the retirement village land; and
	(ii)	how the resident will be affected if the charge is released; and
	(iii)	that, not later than 60 days after the day the resident receives the notice, the resident may, by written notice given to the commissioner for fair trading, object to the release; and
	(b)	give the commissioner for fair trading—
	(i)	a statutory declaration made by the scheme operator stating—
	(A)	the fact of the scheme operator’s compliance with paragraph (a); and
	(B)	whether the scheme operator knows or suspects on reasonable grounds that a person has started, or is likely to start, proceedings to enforce the charge under section 173 (Enforcing charges); and
	(ii)	a copy of the notice given to residents under paragraph (a).
Note 1	The Statutory Declarations Act 1959 (Cwlth) applies to the making of statutory declarations under ACT laws.
Note 2	The Criminal Code includes an offence for  making false statements in statutory declarations (see s 336A).
	(4)	In this section:
resident includes a former resident who has not received an exit entitlement to which the former resident is entitled under the former resident’s residence contract. 
178	Commissioner for fair trading to release charge 
	(1)	The commissioner for fair trading must release the charge over retirement village land of a retirement village if the commissioner is satisfied—
	(a)	the scheme operator for the retirement village has complied with section 177; and
	(b)	having regard to any objections made under section 177, it is appropriate to release the charge over the land.
	(2)	If the commissioner for fair trading releases a charge under subsection (1), the commissioner must give the registrar-general written notice of the release.
	(3)	On receiving the notice, the registrar-general must register the release of the charge over the retirement village land.

Part 10	Residents participation
Division 10.1	Residents committees
179	Establishing residents committees 
	(1)	The residents of a retirement village may establish, by election conducted among themselves, a residents committee for the village.
	(2)	Only a resident of the retirement village may be a member of a residents committee.
	(3)	Only 1 residents committee may be established for a retirement village. 
	(4)	If more than 1 body or committee (however described) purports to be the residents committee for a retirement village, the scheme operator for the village or a resident of the village may apply to the ACAT for an order determining which body or committee is the residents committee.
	(5)	Nothing in this section prevents the residents of a retirement village establishing other committees or organisations of residents for other purposes.
	(6)	A regulation may make provision in relation to the following:
	(a)	the election, functions and procedure of residents committees and sub-committees; 
	(b)	model rules that may be adopted by a residents committee.
180	Operating residents committees
	(1)	A residents committee for a retirement village may—
	(a)	decide its own procedure; and
	(b)	form 1 or more subcommittees and decide the procedure for those subcommittees; and
	(c)	call meetings of all the residents of the village to vote on—
	(i)	any matter on which a resolution of the residents is required under this Act; and
	(ii)	any other matter affecting the management or operation of the village; and
	(iii)	any other matter prescribed by regulation.
	(2)	The matters mentioned in subsection (1) are subject to the conditions (if any) prescribed by regulation.
181	Offence—preventing etc residents committees
A scheme operator for a retirement village commits an offence if the operator does any of the following in relation to a residents committee for the village:
	(a)	discourages or prevents the establishment of a residents committee; 
	(b)	obstructs a residents committee from exercising the committee’s functions; 
	(c)	prevents a resident of the village from joining a committee or organisation for residents of the village.
Maximum penalty:  50 penalty units.
182	Scheme operator to provide administrative assistance
	(1)	This section applies if—
	(a)	a scheme operator for a retirement village receives a written request from a residents committee for the village for administrative assistance; and
	(b)	an estimate of the cost of providing the assistance has been included in the general services charge budget.
	(2)	The scheme operator must give reasonable administrative assistance to the residents committee.
Examples—administrative assistance
photocopying, distributing notices
Note	An example is part of the Act, is not exhaustive and may extend, but does not limit, the meaning of the provision in which it appears (see Legislation Act, s 126 and s 132).
183	Meetings between residents committees and scheme operators
	(1)	A scheme operator for a retirement village must, on the reasonable request of a residents committee for the village, meet with the committee or a representative of the committee.
	(2)	A residents committee for a retirement village or a representative of the committee must, on the reasonable request of the scheme operator for the village, meet the operator.
	(3)	If a reasonable request under this section is not complied with, the person who made the request may apply to the ACAT for an order directing compliance with the request.
184	Retirement villages without residents committees
	(1)	If there is no residents committee for a retirement village, the scheme operator for the village must call a residents meeting for considering and voting on the matters mentioned in section 180 (1) (c) (Operating residents committees)—
	(a)	at least once every 12 months; and
	(b)	if the scheme operator receives a written request for a meeting from—
	(i)	5 residents or 10% of the residents (whichever is the greater) of the retirement village; or
	(ii)	if the retirement village has fewer than 10 occupied accommodation units—a majority of the occupied units.
	(2)	The meeting must be held in or near the retirement village.
Division 10.2	Meetings of residents committees 
185	Meaning of decision—div 10.2
In this division:
decision does not include a decision to be made by the owners corporation of a units plan under the Unit Titles (Management) Act 2011. 
186	Decision-making at meetings
	(1)	A decision by residents of a retirement village at a residents meeting must be made by ordinary resolution, unless this Act requires the decision to be made by special resolution. 
	(2)	If, at a residents meeting, the residents make a resolution of a particular kind (that is, an ordinary or special resolution), a resolution of the same kind at a meeting is required to amend or revoke the earlier resolution, unless this Act requires otherwise.
187	Ordinary resolutions 
The requirement for passing an ordinary resolution at a residents meeting is that the number of votes cast in favour of the resolution exceeds the number of votes cast against it.
188	Special resolutions 
The requirements for passing a special resolution at a residents meeting are that—
	(a)	the number of votes cast in favour of the resolution exceed the number of votes cast against it; and
	(b)	the votes cast against the resolution number less than 1/3 of the total number of votes that can be cast on the resolution by people present at the meeting (including proxy votes).
189	Who may vote
	(1)	The following people are entitled to vote at a residents meeting:
	(a)	if the residents of the retirement village have, by special resolution, agreed that each resident of the village should be entitled to vote—each resident of the village; 
	(b)	if a former resident of an accommodation unit in the village is required under section 142 (Working out and paying general services charge for former residents) to pay the whole or a portion of the general services charge for the unit—1 former resident of the accommodation unit; 
	(c)	in any other case—1 resident of each accommodation unit in the village.
	(2)	A resident’s vote at a residents meeting may be cast by—
	(a)	the resident; or
	(b)	a person who the resident has appointed by power of attorney; or
	(c)	any other person who the resident has appointed by signed notice to vote by way of a proxy vote at a particular meeting stated in the notice.
190	Secret ballot
If a person entitled to vote at a residents meeting asks for a vote to be undertaken by secret ballot, the vote must be undertaken by secret ballot.
191	Proxy votes 
	(1)	Votes at a residents meeting may be cast by proxy.
	(2)	A person entitled to vote at a residents meeting must not—
	(a)	appoint a proxy for more than 1 meeting at a time; or
	(b)	appoint the scheme operator for the village as a proxy.
	(3)	A person may not hold more than 2 proxy votes for a meeting.
192	Postal votes
Votes at a residents meeting may be cast in writing by placing the vote in a container supplied for that purpose before the time when the meeting is to be held.
193	Offences—postal votes 
	(1)	A scheme operator for a retirement village commits an offence if the operator fails to provide a secured container in a common area of the village for the purpose of a resident casting a vote under section 192 at least 24 hours before the time of a residents meeting.
Maximum penalty:  10 penalty units.
	(2)	A scheme operator for a retirement village commits an offence if the operator fails to deliver the secured container to the chairperson of a residents meeting immediately before the chairperson opens the meeting.
Maximum penalty:  10 penalty units.
	(3)	A scheme operator commits an offence if the operator opens, or allows to be opened, the secured container before it is delivered to the chairperson of a residents meeting.
Maximum penalty:  10 penalty units.
194	Quorum at meetings 
	(1)	A motion may be considered at a residents meeting only if there is present—
	(a)	a quorum (a standard quorum) made up by people entitled to vote on the motion in relation to not less than 1/2 the total number of accommodation units in a retirement village; or
	(b)	a quorum (a reduced quorum) made up under subsection (2).
	(2)	If a standard quorum is not present within 1/2 an hour after the motion arises for consideration, a reduced quorum for the motion and any subsequent motion considered at the meeting is made up by 2 or more people present at the meeting who are entitled to vote on the motion.
	(3)	If a reduced quorum is not present 1/2 an hour after the motion arises for consideration, the meeting is adjourned to the same day in the next week at the same place and time.
	(4)	If a reduced quorum is present for the consideration of any motion and the motion is voted on, section 195 applies to the decision on the motion.
	(5)	If a reduced quorum is present for the consideration of any motion and the motion is not voted on, the meeting may decide to adjourn to the same day in the next week at the same place and time to consider the motion (and any others remaining to be considered).
	(6)	If a meeting is adjourned under this section (including paragraph (c)) and a standard quorum is not present within 1/2 an hour after a motion arises for consideration at the adjourned meeting—
	(a)	a reduced quorum is made up by the people who are then present and entitled to vote on the motion and any subsequent motion considered at the adjourned meeting; and
	(b)	if a reduced quorum is present for the consideration of any motion at the adjourned meeting, and the motion is voted on—the decision on the motion must be notified under section 195; and
	(c)	if the motion (or any other motion) is not voted on at the adjourned meeting—the adjourned meeting may resolve to adjourn again to the same day in the next week at the same place and time to consider the resolution (and any others remaining to be considered at the meeting).
195	Notice of reduced quorum decisions and adjournments 
	(1)	If a decision (a reduced quorum decision) is made on a motion while a reduced quorum was present for the consideration of the motion, within 7 days after the meeting a scheme operator for a retirement village must give each resident of the retirement village written notice of the reduced quorum decision.
Note	If a form is approved under s 217 for a notice, the form must be used.
	(2)	Within 4 days after a meeting is adjourned under section 176, the scheme operator must give each resident a written notice of the date, place and time to which the meeting is adjourned.
196	Reduced quorum decisions—effect 
	(1)	A reduced quorum decision takes effect 21 days after the decision was made, subject to this section.
	(2)	Subsection (1) does not apply if a scheme operator for a retirement village fails to give notice of the reduced quorum decision under section 195 (1).
	(3)	A reduced quorum decision is disallowed if, within 21 days after the decision was made, the scheme operator is given a petition requiring that the decision be disallowed signed by a majority of people entitled to vote on the relevant motion at the time of signing (whether or not they were present or entitled to vote on the motion at the general meeting at which the decision was made).
	(4)	If, within 21 days after a reduced quorum decision is made, a motion is passed confirming the reduced quorum decision while a standard quorum is present at a meeting for consideration of the confirmation motion, the reduced quorum decision takes effect on confirmation, whether or not a petition under subsection (3) is at any time given to the scheme operator.
	(5)	This section does not prevent a reduced quorum decision from being revoked at a meeting, whether a standard quorum or reduced quorum is present while the revocation motion is being considered.

Part 11	Retirement village disputes
Division 11.1	General
197	Meaning of retirement village dispute
	(1)	For this Act, a dispute is a retirement village dispute if—
	(a)	it is between—
	(i)	the parties to a residence contract; or 
	(ii)	if a resident is not a party to the residence contract—the resident and the scheme operator; and
	(b)	it is about, arises from, or relates to, the residence contract.
Example
a dispute between a resident and a scheme operator about who is lawfully entitled to an amount received as an ingoing contribution in relation to a residence contract
Note	An example is part of the Act, is not exhaustive and may extend, but does not limit, the meaning of the provision in which it appears (see Legislation Act, s 126 and s 132).
	(2)	In this section:
resident includes a former resident. 
198	Applications to ACAT
	(1)	A person may make an application to the ACAT in relation to a retirement village dispute.
Note 	If a form is approved under the ACT Civil and Administrative Tribunal Act 2008 for the application, the form must be used.
	(2)	This section is subject to section 199.
199	Preliminary negotiations
	(1)	A person may make an application to the ACAT in relation to a retirement village dispute only if the parties to the dispute have attempted to resolve the dispute under this section.
	(2)	A party to the retirement village dispute (the 1st party) must give the other party to the dispute (the 2nd party) written notice—
	(a)	stating the matters in dispute; and
	(b)	nominating a day (the nominated day), not earlier than 14 days after the day the notice is given, for the parties to meet in the retirement village to attempt to resolve the dispute.
	(3)	The 2nd party must give the 1st party a written response to the notice not later than 7 days after the day the 2nd party received the notice.
	(4)	On the nominated day, or another day that is not later than 7 days after the nominated day and agreed by the parties, the parties must meet in the retirement village and attempt to resolve the dispute.
	(5)	If the parties reach agreement during a preliminary negotiation, the scheme operator must, within 7 days after the day agreement is reached—
	(a)	record the agreement in writing; and
	(b)	sign the agreement; and
	(c)	organise for the agreement to be signed by or on behalf of the resident; and
	(d)	give a copy of the signed agreement to the resident.
Division 11.2	Mediation 
200	Referral to mediation
	(1)	This section applies if a person makes an application to the ACAT in relation to a retirement village dispute.
	(2)	Not later than 14 days after the day the application is made, the registrar must—
	(a)	refer the subject matter of the application to a registered mediator for mediation; and
	(b)	give the parties to the dispute written notice of—
	(i)	the mediator who is to mediate the dispute; and
	(ii)	the time, date and place of the conference (the mediation conference) to be conducted by the mediator.
	(3)	The notice under subsection (2) (b) must be given not later than 7 days before the mediation conference.
	(4)	In this section:
registered mediator—see the Mediation Act 1997, dictionary.  
201	Parties attendance at mediation conferences
A party to a retirement village dispute cannot be compelled to attend a mediation conference.
202	Representation at mediation conferences
A party to a retirement village dispute may be represented at a mediation conference by a lawyer or an agent, unless the mediator is satisfied on reasonable grounds that the party should not be represented.
203	People who may attend mediation conferences
	(1)	A mediator may allow a person to take part in a mediation conference in relation to a retirement village dispute if the mediator is satisfied that the person has a sufficient interest in the resolution of the dispute.
	(2)	However, the person does not become a party to the retirement village dispute.
204	Mediation agreements
	(1)	This section applies if the parties to a retirement village dispute reach a mediated agreement (the mediation agreement) on the dispute.
	(2)	The mediator must record the mediation agreement in writing and have it signed by or for the parties.
	(3)	The mediator must give a copy of the signed mediation agreement to the registrar as soon as practicable after it is signed.
Division 11.3	ACAT orders
205	ACAT orders generally
	(1)	The ACAT may make the following orders in relation to a retirement village dispute:
	(a)	an order requiring a party to the dispute to do, or not do, something;
	(b)	an order requiring a party to the dispute to pay an amount (including an amount of compensation) to a stated person;
	(c)	an order that a party to the dispute need not pay an amount to a stated person;
	(d)	an order setting aside a residence contract between the parties to the dispute;
	(e)	an order setting aside a mediation agreement between the parties to the dispute; 
	(f)	an order giving effect to a settlement agreed to by the parties to the dispute.
	(2)	An order may state a time for compliance with it.
	(3)	This section does not limit the orders the ACAT may make in relation to a retirement village dispute.
Note	The ACT Civil and Administrative Tribunal Act 2008, s 56 sets out other orders the ACAT may make.
206	ACAT orders—removal from retirement village etc
	(1)	This section applies if a retirement village dispute arises because a resident of a retirement village—
	(a)	is threatened with removal, or is removed, from the village by the scheme operator for the village; or
	(b)	is threatened with deprivation, or is deprived, of the resident’s right to live in the village under a residence contract by the scheme operator; or
	(c)	is threatened with restriction of, or is restricted in, the resident’s use of the village land under the residence contract by the scheme operator.
	(2)	The ACAT may make an order that the scheme operator do, or not do, a stated thing.
	(3)	In making an order, the ACAT must be satisfied that the actual or threatened removal, deprivation or restriction mentioned in the application—
	(a)	is, or would be, a breach of the resident’s residence contract; or
	(b)	is not, or would not be, justified.
	(4)	Without limiting subsection (3), the ACAT may have regard to the rights and interests of all people who may be affected if the order is made.
	(5)	The ACAT may make the order on the conditions and for the period it decides is appropriate.
207	ACAT orders—false or misleading documents
	(1)	This section applies if a retirement village dispute arises because—
	(a)	a scheme operator for a retirement village contravenes the Criminal Code, section 338 (Giving false or misleading information); and 
	(b)	a resident of the village is significantly prejudiced by the contravention.
	(2)	The ACAT may make an order setting aside the resident’s residence contract.
	(3)	In setting aside a residence contract, the ACAT may make the orders it considers appropriate, including—
	(a)	an order that the scheme operator refund to the resident the ingoing contribution or another amount paid under the residence contract; and
	(b)	an order that the scheme operator compensate the resident for damages or loss caused by the contravention.
208	ACAT orders—payment of exit entitlement 
	(1)	This section applies if a retirement village dispute arises because—
	(a)	a scheme operator for a retirement village fails to comply with a requirement under division 6.3 (Reselling accommodation units); and 
	(b)	a former resident of the village is significantly prejudiced by the failure.
	(2)	The ACAT may make an order requiring the scheme operator to pay the former resident the former resident’s exit entitlement.
	(3)	In ordering the scheme operator to pay the exit entitlement to the former resident, the ACAT must base the exit entitlement on the following in relation to the accommodation unit that the resident lived in:
	(a)	if the resale value of the right to live in the accommodation unit has been agreed between the resident and scheme operator—the agreed value; and
	(b)	if the resale value of the right to live in the unit has not been agreed—the resale value of the right to live in the unit decided by the ACAT under subsection (4).
	(4)	For subsection (3) (b), the ACAT must obtain an independent valuation of the right to live in the accommodation unit from a valuer.

Part 12	Retirement village scheme register
    
209	Retirement village scheme register
	(1)	The commissioner for fair trading must keep a register of schemes for retirement villages registered under this Act (the retirement village scheme register).
	(2)	The retirement village scheme register must include the following items (each of which is a record) for each scheme for a retirement village:
	(a)	a copy of the registration certificate;
	(b)	details of the following:
	(i)	the land on which the retirement village buildings and facilities are, or will be, constructed; 
	(ii)	the accommodation units and communal facilities that are available for the retirement village under the scheme; 
	(iii)	the accommodation units and communal facilities that are available for the retirement village under the scheme, depending on the sales activity, finance availability, or market conditions for the village;
	(iv)	other matters in relation to the scheme prescribed by regulation; 
	(c)	a copy of the public information document in relation to the scheme, and notice of any inaccuracy in the document given under section 71 (2) (Offences—failure to notify inaccuracies in public information documents);
	(d)	the annual financial statements given under section 163 (Preparing annual financial statements).
Note	If the commissioner for fair trading transfers or cancels the registration of a scheme for a retirement village, the commissioner must record the transfer or cancellation in the retirement village scheme register (see s 15 (5) and s 18 (5)).
	(3)	The retirement village scheme register may be kept in any form, including electronically, that the commissioner for fair trading decides.
	(4)	A record must be kept on the retirement village scheme register for at least 10 years.
210	Correcting retirement village scheme register 
The commissioner for fair trading may correct a mistake or omission in the retirement village scheme register subject to the requirements (if any) prescribed by regulation.
211	Public access to retirement village scheme register
	(1)	The retirement village scheme register must be available for inspection at reasonable times. 
	(2)	A person may make a copy of all or part of the retirement village scheme register.
Note 	A fee may be determined under s 216 for s (2).

Part 13	Notification and review of decisions
212	Meaning of reviewable decision—pt 13
In this part:
reviewable decision means a decision mentioned in schedule 1, column 3 under a provision of this Act mentioned in column 2 in relation to the decision.
213	Reviewable decision notices
If a person makes a reviewable decision, the person must give a reviewable decision notice to each entity mentioned in schedule 1, column 4 in relation to the decision.
Note 1	The person must also take reasonable steps to give a reviewable decision notice to any other person whose interests are affected by the decision (see ACT Civil and Administrative Tribunal Act 2008, s 67A).
Note 2	The requirements for reviewable decision notices are prescribed under the ACT Civil and Administrative Tribunal Act 2008.
214	Applications for review
The following may apply to the ACAT for a review of a reviewable decision:
	(a)	an entity mentioned in schedule 1, column 4 in relation to the decision;
	(b)	any other person whose interests are affected by the decision.
Note	If a form is approved under the ACT Civil and Administrative Tribunal Act 2008 for the application, the form must be used.

Part 14	Miscellaneous
215	Review of Act
	(1)	The Minister must, as soon as practicable after the end of this Act’s 2nd year of operation (but before the commencement of part 9 (Charges created over retirement village land to protect residents’ rights))—
	(a)	review the operation of the Act; and
	(b)	present a report of the review to the Legislative Assembly.
	(2)	The review must include—
	(a)	a consideration of the effectiveness of the operation of part 9  to secure the rights mentioned in section 171 (Effect of charges) of residents of retirement villages; and
	(b)	a consideration of the effectiveness of the operation of this Act in achieving its objects.
216	Determination of fees
	(1)	The Minister may determine fees for this Act.
Note	The Legislation Act contains provisions about the making of determinations and regulations relating to fees (see pt 6.3).
	(2)	A determination is a disallowable instrument.
Note	A disallowable instrument must be notified, and presented to the Legislative Assembly, under the Legislation Act.
217	Approved forms
	(1)	The commissioner for fair trading may approve forms for this Act.
	(2)	If the commissioner for fair trading approves a form for a particular purpose, the approved form must be used for that purpose.
Note	For other provisions about forms, see the Legislation Act, s 255.
	(3)	An approved form is a notifiable instrument.
Note	A notifiable instrument must be notified under the Legislation Act.
218	Regulation-making power
The Executive may make regulations for this Act.
Note	A regulation must be notified, and presented to the Legislative Assembly, under the Legislation Act.
219	Legislation amended—sch 2
This Act amends the legislation mentioned in schedule 2.
220	Legislation repealed
The Fair Trading (Retirement Villages Industry) Code of Practice 1999 (NI1999-277) is repealed.

Part 15	Transitional
500	Definitions—pt 15
In this part:
commencement day means the day this Act, section 6 (Objects of Act) commences.
existing contract means any of the following that was in force immediately before the commencement day:
	(a)	 a residence contract under the repealed code; 
	(b)	any other contract, agreement, scheme or arrangement under which a person obtained the right to occupy residential premises in a complex that was, at the time the right was obtained, a retirement village within the meaning of this Act (even if it stopped being a retirement village before the commencement of this Act).
repealed code means the Fair Trading (Retirement Villages Industry) Code of Practice 1999 (NI1999-277).
501	Status of existing contracts
	(1)	An existing contract is taken to be a residence contract under this Act.
	(2)	This section is subject to section 502 and section 503.
502	Noncompliant residence contracts
Section 21 (Form and content of residence contracts) and section 22 (Offence—noncompliant residence contracts) do not apply to an existing contract.
503	Inconsistencies between Act and existing contracts
	(1)	This section applies if an existing contract contains a provision (the contract provision) dealing with the same subject matter as a provision of this Act (the Act provision) that would, apart from this section, apply to the contract. 
	(2)	The Act provision applies to the existing contract to the extent that it is possible for it to apply without being inconsistent with the contract provision. 
	(3)	However, if the Act provision is inconsistent with the contract provision, the contract provision prevails to the extent of the inconsistency.
504	Parties may agree to apply Act to existing contract
Despite section 502 and section 503—
	(a)	the parties to an existing contract may agree in writing that this Act applies to the existing contract or part of the contract; and
	(b)	if the parties agree, this Act applies to the existing contract or part of the contract.
505	Offence—failure to give public information documents to existing residents
A scheme operator for a retirement village commits an offence if the scheme operator fails to give a copy of the public information document for the retirement village to each resident of the village under an existing contract within 28 days after the commencement day.
Maximum penalty:  540 penalty units.
506	Cooling-off periods
Division 4.4 (Rescinding residence contracts during cooling-off periods for residence contracts) does not apply to an existing contract.
507	Settling-in periods
Division 4.7 (Ending residence contracts during settling-in period) does not apply to an existing contract.
508	Waiting list fees
	(1)	This section applies to a fee that is a waiting list fee within the meaning of this Act if the fee was paid before the commencement day.
	(2)	Division 6.1 (Waiting list fees) does not apply to the fee.
509	Existing disputes
	(1)	This section applies if—
	(a)	before the commencement day, a dispute resolution process (the existing dispute resolution process) was started in relation to a dispute under an existing contract; and
	(b)	immediately before the commencement day, the existing dispute resolution process had not finished.
	(2)	The existing dispute resolution process continues to apply to the dispute.
510	Transitional regulations
	(1)	A regulation may prescribe transitional matters necessary or convenient to be prescribed because of the enactment of this Act.
	(2)	A regulation may modify this part (including in relation to another territory law) to make provision in relation to anything that, in the Executive’s opinion, is not, or is not adequately or appropriately, dealt with in this part.
	(3)	A regulation under subsection (2) has effect despite anything else in this Act or another territory law.
511	Expiry—pt 15
This part expires 1 year after the commencement day.
Note	Transitional provisions are kept in the Act for a limited time.  A transitional provision is repealed on its expiry but continues to have effect after its repeal (see Legislation Act, s 88).

Schedule 1	Reviewable decisions
(see pt 13)

column 1
item	column 2
section	column 3
decision	column 4
entity	
1	13 (1) (b)	refuse to register scheme for retirement village 	applicant for registration	
2	15 (4) (b)	refuse to transfer registration of scheme for retirement village	scheme operator	
2	17 (2)	cancel registration of scheme for retirement village	scheme operator	
3	18 (3)	refuse to cancel registration of scheme for retirement village	scheme operator	

Schedule 2	Consequential amendments
(see s 219)
Part 2.1	Agents Act 2003
[2.1]	New section 77 (1A)
insert
	(1A)	Subsection (1) does not apply if—
	(a)	the agent is a scheme operator for a retirement village under the Retirement Villages Act 2011; and
	(b)	the agent sells an accommodation unit in the retirement village for a resident under that Act.
Note	The agent has an evidential burden in relation to the matters mentioned in s (1A) (see Criminal Code, s 58).
Part 2.2	Civil Law (Sale of Residential Property) Act 2003
[2.2]	Section 8 (2) (c)
omit
[2.3]	Section 20, definition of premises, paragraph (e)
substitute
	(e)	a retirement village under the Retirement Villages Act 2011; 
[2.4]	Section 20, definition of retirement village
omit
[2.5]	Dictionary, definition of retirement village
omit
Part 2.3	Discrimination Act 1991
[2.6]	New section 57KA
insert
57KA	Accommodation and goods and services for retirement villages
	(1)	Section 20 or section 21 does not make it unlawful to discriminate against a person on the ground of age in relation to the provision of goods and services or accommodation in a retirement village.
	(2)	In this section:
retirement village—see the Retirement Villages Act 2011, section 7. 
Part 2.4	Fair Trading (Australian Consumer Law) Act 1992
[2.7]	Dictionary, definition of fair trading legislation, new paragraph (fa)
insert
	(fa)	the Retirement Villages Act 2011; or
Part 2.5	Residential Tenancies Act 1997
[2.8]	Section 4 (a)
substitute
	(a)	a retirement village under the Retirement Villages Act 2011; or

Dictionary
(see s 3)
Note 1	The Legislation Act contains definitions and other provisions relevant to this Act.
Note 2	For example, the Legislation Act, dict, pt 1, defines the following terms:
·	ACAT
·	ACT
·	Australian statistician
·	commissioner for fair trading
·	Commonwealth
·	contravene 
·	Corporations Act
·	Criminal Code
·	daily newspaper
·	document
·	domestic partner
·	entity
·	financial year
·	function
·	GST
·	land
·	lawyer
·	Minister (see s 162)
·	month
·	must (see s 146)
·	proceeding
·	public trustee
·	quarter
·	registrar-general
·	reviewable decision notice
·	State
·	territory law.
accommodation information, for a scheme for a retirement village, for division 5.1 (General inquiry documents and public information documents)—see section 66.
accommodation unit means the part of a retirement village where a resident of the village has an exclusive right to live.
authorised person, for division 4.5 (Dealing with property assigned during cooling-off period)—see section 33.
capital improvement—see section 101. 
capital item, in relation to a retirement village, includes—
	(a)	a building or structure in the village owned by the scheme operator for the village, other than an item that, under a residence contract, is to be maintained, replaced or repaired by a resident of the village; and 
	(b)	plant, machinery or equipment used in the operation of the village, other than an item that is property of an owners corporation for a units plan in relation to the village; and
	(c)	infrastructure of the village owned by the scheme operator for the village.
Examples—par (a)
communal facilities, amenities, accommodation units
Examples—par (b)
communal hot water and air conditioning, communal kitchen and dining room equipment, community facility furnishings, gardening equipment, retirement village bus or transportation services
Examples—par (c)
roadways, pathways, drainage, sewerage mains, landscaping, electrical distribution systems, water services and connections, distribution services
Note	An example is part of the Act, is not exhaustive and may extend, but does not limit, the meaning of the provision in which it appears (see Legislation Act, s 126 and s 132).
capital replacement fund means a fund established under section 111.
capital replacement fund amount, for division 8.2 (Capital replacement fund)—see section 113 (1). 
capital replacement fund contribution, for a retirement village—see section 109. 
condition report, for division 6.2 (Condition of accommodation units)—see section 81. 
conviction, for division 7.1 (Scheme operators)—see the Spent Convictions Act 2000, section 6. 
cooling-off period, for a residence contract, in relation to a retirement village—see section 30. 
decision, for division 10.2 (Meetings of residents committees)—see section 185. 
dispute resolution information, for a scheme for a retirement village, for division 5.1 (General inquiry documents and public information documents)—see section 66.
exit entitlement means an amount that a scheme operator for a retirement village may be liable to pay, or to credit to the account of, a resident or former resident of the village under a residence contract arising from—
	(a)	the resident or former resident ceasing to live in the accommodation unit to which the contract relates; or 
	(b)	the settlement of the sale of the right to live in the accommodation unit.
exit fee means the amount that a resident or former resident of a retirement village may be liable to pay to a scheme operator for the village under a residence contract arising from—
	(c)	the resident or former resident ceasing to live in the accommodation unit to which the contract relates; or
	(d)	the settlement of the sale of a right to live in the accommodation unit.
facilities information, for a scheme for a retirement village, for division 5.1 (General inquiry documents and public information documents)—see section 66.
former resident includes—
	(a)	a person who, personally or for someone else, entered into a residence contract to secure the person’s, or other person’s, right to live in a retirement village; or
	(b)	the former resident’s personal representative. 
fund information, for a scheme for a retirement village, for division 5.1 (General inquiry documents and public information documents)—see section 66.
general services means services supplied, or made available, to all residents of a retirement village.
Examples
·	management and administration
·	gardening and general maintenance
·	a shop or other facility for supplying goods to residents
·	a service or facility for the recreation or entertainment of residents
Note	An example is part of the Act, is not exhaustive and may extend, but does not limit, the meaning of the provision in which it appears (see Legislation Act, s 126 and s 132).
general services charge, for a retirement village, for division 8.4 (Services charges)—see section 138. 
general services charge budget—see section 139 (1).
ingoing contribution—see section 38. 
insolvent under administration, for division 7.1 (Scheme operators)—see the Corporations Act, section 9.
maintenance reserve fund means a fund established under section 126.
maintenance reserve fund amount, for division 8.3 (Maintenance reserve fund)—see section 128 (1). 
maintenance reserve fund contribution—see section 124. 
own—a person owns an accommodation unit if the person has a leasehold interest in the parcel on which the accommodation unit is located. 
owners corporation, for a units plan—see the Unit Titles (Management) Act 2011, dictionary.
personal services means optional services supplied or made available for the benefit, care or enjoyment of a resident of a retirement village.
Examples
laundry, meals, cleaning a resident’s accommodation unit
Note	An example is part of the Act, is not exhaustive and may extend, but does not limit, the meaning of the provision in which it appears (see Legislation Act, s 126 and s 132).
public information document, in relation to a scheme for a retirement village—see section 65. 
reinstatement work, in relation to an accommodation unit—see section 80.
relative, of a resident, means the resident’s domestic partner, mother, stepmother, father, stepfather, sister, stepsister, half-sister, brother, stepbrother, half-brother, child or stepchild.
relevant conviction, for division 7.1 (Scheme operators)—see section 93.
resale process information, for an accommodation unit in a retirement village, for division 5.1 (General inquiry documents and public information documents)—see section 66.
residence contract, in relation to a retirement village—see section 20. 
resident—
	(a)	for this Act generally—see section 10; and
	(b)	for division 4.8 (Ending residence contracts in other circumstances)—see section 50; and
	(c)	for division 6.2 (Condition of accommodation units)—see section 81; and
	(d)	for division 6.3 (Reselling accommodation units)—see section 85; and
	(e)	for part 9 (Charges created over retirement village land to protect residents’ rights)—see section 167.
resident contribution information, for a resident of a retirement village, for division 5.1 (General inquiry documents and public information documents)—see section 66.
resident rights information, for a resident of a retirement village, for division 5.1 (General inquiry documents and public information documents)—see section 66.
residents committee, for a retirement village, means a committee established under section 179.
residents meeting means a meeting of the residents of a retirement village. 
retirement village—see section 7.
retirement village dispute—see section 197. 
retirement village land, for a retirement village—see section 8. 
retirement village land information, for a retirement village, for division 5.1 (General inquiry documents and public information documents)—see section 66.
retirement village scheme register means the register kept by the commissioner for fair trading under section 209.  
reviewable decision, for part 13 (Notification and review of decisions)—see section 212.
scheme, for a retirement village—see section 9.
scheme operator, for a retirement village—see section 11.
scheme operator payment information, for a scheme for a retirement village, for division 5.1 (General inquiry documents and public information documents)—see section 66.
selling agent, for division 6.3 (Reselling accommodation units)—see section 85. 
services charge means a charge payable by a resident for general or personal services under a residence contract.
services information, for a scheme for a retirement village, for division 5.1 (General inquiry documents and public information documents)—see section 66.
settling-in period, for a residence contract in relation to a retirement village, for division 4.7 (Ending residence contracts during settling‑in period)—see section 47.
spent, for a conviction, for division 7.1 (Scheme operators)—see the Spent Convictions Act 2000, section 7.
trustee, for division 4.6 (Dealing with ingoing contributions)—see section 39.
units plan—see the Unit Titles Act 2001, dictionary. 
waiting list fee, for a retirement village, for division 6.1 (Waiting list fees)—see section 76. 

Endnotes
1	Presentation speech
	Presentation speech made in the Legislative Assembly on	2011.
2	Notification
	Notified under the Legislation Act on	2011.
3	Republications of amended laws
	For the latest republication of amended laws, see www.legislation.act.gov.au.

© Australian Capital Territory 2011