Retirement Villages Act 2012

This Act is the Retirement Villages Act 2012.

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 ‘development approval—see the Planning Act 2023, dictionary.’ means that the term ‘development approval’ is defined in that dictionary 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)).

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.

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

The objects of this Act are to—

set out particular rights and obligations of residents and operators of retirement villages; and

facilitate the disclosure of information to prospective residents of retirement villages; and

require contracts between residents and operators of retirement villages to contain full details of the rights and obligations of the parties; and

facilitate participation by residents, who want to be involved, in the management of retirement villages; and

establish appropriate mechanisms for resolving certain disputes between residents and operators of retirement villages; and

encourage the retirement village industry to adopt best practice management standards.

In this Act:

operator, of a retirement village—

means the person who, alone or with someone else, manages or controls the retirement village; and

includes—

a person for the time being managing or controlling the retirement village; and

a person (other than a resident or other person mentioned in section 8 (Meaning of residence right) who owns land in the village; and

a person mentioned in section 15A (1) (d) (Application to residents and operators of former retirement villages); and

any other person prescribed by regulation; but

Note Power to make a regulation in relation to a matter includes power to make provision in relation to a class of matter (see Legislation Act, s 48 (2)).

does not include—

the body corporate of a community title scheme or the owners corporation for a units plan; or

the managing agent of a community title scheme or units plan; or

any person excluded from this definition by regulation.

If there is more than 1 operator for a retirement village, it is sufficient compliance with a requirement of this Act if—

any of the operators exercises the functions of an operator under this Act; and

any notice or other document required to be given to the operator under this Act is given to any of the operators.

Note 1 A reference to an Act includes a reference to the statutory instruments made or in force under the Act, including any regulation (see Legislation Act, s 104).

Note 2 For how documents may be given, see the Legislation Act, pt 19.5.

In this section:

body corporate, of a community title scheme—see the Community Title Act 2001, dictionary.

In this Act:

residence right, in relation to residential premises in a retirement village, means—

a person’s right to occupy the residential premises under a contract—

under which the person bought the residential premises; or

under which the person bought shares entitling the person to occupy the residential premises; or

in the form of a lease, licence, arrangement or agreement of any kind (other than a residential tenancy agreement)—

entered into under division 10.5 (Sale or letting of premises by certain residents); or

that contains a term to the effect that this Act does not apply to the residential premises; or

under which the person lends money to the operator of the village in consideration for, or in expectation of, the right to occupy the residential premises; or

prescribed by regulation; or

any other right prescribed by regulation.

Note The contract that gives rise to a residence right is a residence contract, and a residence contract is a village contract (see dict).

For the definition of residence right, it does not matter if the person who acquired the right (the acquirer)—

is a corporation, if the residential premises is intended for use by an individual; or

acquires it for the purposes of allowing another person to live in the residential premises instead of the acquirer.

If subsection (2) applies, a retired person who lives in the residential premises with the acquirer’s consent is taken to have the residence right.

In this Act, a reference to the sale, the sale price, or a contract for the sale, of residential premises in a retirement village that was or is to be occupied under a company title scheme is a reference to the sale, the sale price, or a contract for the sale, of the residence right in relation to the residential premises.

In this Act:

retirement village—

means a complex containing residential premises that are—

predominantly or exclusively occupied, or intended to be predominantly or exclusively occupied, by retired people who have entered into village contracts with an operator of the complex; or

prescribed by regulation; but

does not include any of the following:

a residential care home provided by a registered provider;

a mobile home park;

residential premises that are the subject of a residential tenancy agreement to which the housing commissioner is a party;

a boarding house;

accommodation provided in a complex for employees of the complex who are not residents of the retirement village;

residential premises that are the subject of a residential tenancy agreement—

to which the operator of a retirement village is a party; and

that contains a term to the effect that this Act does not apply to the premises;

any other place prescribed by regulation.

In this section:

mobile home park—see the Residential Tenancies Act 1997, dictionary.

In this Act:

ingoing contribution—

means—

an amount payable by or on behalf of a person to the operator of a retirement village under a residence contract; or

any other amount paid by or on behalf of a person to the operator of a retirement village in consideration for, or in expectation of, the person or someone else becoming a resident of the village; but

does not include the following:

a waiting list fee;

a recurrent charge;

if the resident is the registered proprietor of a lease, the owner of a unit in a units plan or the owner of a lot in a community title scheme where the residential premises are located—the purchase price of the land or lot;

if the person owns shares in a company title scheme that give rise to a residence right in relation to the residential premises—the purchase price of the shares;

a payment prescribed by regulation.

Note Power to make a regulation in relation to a matter includes power to make provision in relation to a class of matter (see Legislation Act, s 48 (2)).

In this Act:

registered interest holder—a person is a registered interest holder in relation to residential premises in a retirement village if—

the person—

is 1 of the following:

the registered proprietor of land in the retirement village;

the owner of a unit in a units plan in the retirement village;

the owner of a lot in a community title scheme in the retirement village; and

has a residence right in relation to residential premises in the retirement village; or

the person owns shares in a company title scheme that give rise to a residence right in relation to residential premises in the retirement village; or

the person is a registered long-term sublessee.

registered long-term sublessee, of residential premises in a retirement village, means a person whose residence contract is in the form of a registered long‑term sublease if—

the sublease includes a provision that entitles the person to at least 50% of any capital gain; or

the person is otherwise entitled under a contract, an agreement or other arrangement to at least 50% of any capital gain.

In this section:

registered long-term sublease means a sublease (however described) registered under the Land Titles Act 1925 that—

has a term of at least 50 years (including any option to renew); or

is for the life of the lessee.

In this Act:

capital gain, in relation to a resident’s entitlement under a residence contract or the sharing of a capital gain under a village contract between the operator and a resident—

means any increase between the amount the resident paid for the residence right for the residential premises and the amount that the next resident pays for a residence right for the same premises; but

does not include any costs associated with the subsequent sale or lease of the premises.

The amount of fees and charges payable under a village contract are not to be included in working out the amount of a capital gain.