Retirement Villages Act 2012

A surplus in the annual accounts of a retirement village for a financial year (a surplus) must be carried forward to the accounts for the next financial year unless—

the residents of the village consent to a proposal for the spending of the whole or any part of the surplus; or

the residents consent to a proposal that the operator of the village distribute the whole or any part of the surplus to the operator and existing residents.

A proposal under subsection (1) may be made by the operator or the residents committee (if any).

A proposal under subsection (1) (b) must provide for the distribution to be made to the operator and existing residents in the same proportion as their contribution to the surplus.

If the residents consent under subsection (1) (b) to a proposal made by the residents committee, the operator may apply to the ACAT for an order that—

the distribution is not to be made; or

approves or amends the proposed distribution.

In making an order, the ACAT may consider the following:

the proportion of the surplus proposed to be distributed;

any other matter the ACAT considers appropriate.