Australian Capital Territory Numbered Acts

RETIREMENT VILLAGES ACT 2012 (NO. 38 OF 2012) - SECT 151

    (1)     This section applies to the amendment of recurrent charges payable under a village contract if—

        (a)     the contract provides that the recurrent charges are to be amended otherwise than in accordance with a fixed formula; and

        (b)     the amendment exceeds the amendment that would result from the recurrent charges being increased in proportion to the variation in the CPI (since the recurrent charges were last amended) and rounded to the nearest whole dollar.

    (2)     For paragraph (1) (b), the variation in the CPI since the recurrent charges were last amended is taken to be the difference between—

        (a)     the CPI published most recently before the charges were last amended; and

        (b)     the CPI published most recently before the written notice of the proposed amendment is given.

    (3)     The operator of a retirement village must give a resident of the village written notice of a proposed amendment of recurrent charges under this section at least 60 days before the proposed amendment takes effect.

    (4)     The notice must—

        (a)     state the amount of the proposed recurrent charges; and

        (b)     state the date it is intended that the proposed recurrent charges are to be payable; and

        (c)     include a brief explanation of the reasons for the proposed amendment exceeding the variation in the CPI or the prescribed rate or amount (if any); and

        (d)     include details of any action taken to minimise the proposed amendment of recurrent charges; and

        (e)     state that the amendment will take effect only if the residents concerned consent to the amendment or the ACAT orders that it take effect; and

        (f)     include anything else prescribed by regulation.

    (5)     A notice may—

        (a)     cancel an earlier notice under this section; or

        (b)     provide for a lesser increase than the increase stated in the earlier notice.

    (6)     A notice that provides for a lesser increase than the increase stated in an earlier notice is taken to have been given on the day when the earlier notice was given.

    (7)     However, the 30-day period mentioned in section 153 (2) (Residents consent to amendment) begins, in relation to a later notice, on the day when the later notice is actually given.

    (8)     If the operator operates more than 1 retirement village, the operator must deal with each village separately under this section.

    (9)     An offence against this section is a strict liability offence.