Retirement Villages Act 1986

Subject to section 38BO, the operator of a retirement village must establish and maintain a capital maintenance fund if the operator sets aside any maintenance charges paid by residents of the retirement village for the purpose of funding the capital maintenance of items of capital for which the operator is responsible after the end of the financial year in which the maintenance charges were paid.

The operator must pay into the capital maintenance fund—

such portion of the maintenance charges as may be required for the capital maintenance of items of capital for which the operator is responsible; and

any amounts received by the operator under an insurance policy in respect of damage or destruction of property covered by the capital maintenance plan; and

any interest received from the investment of the whole, or any part of, the capital maintenance fund; and

any other prescribed amounts.

Subject to subsection (4), the operator may pay money out of the capital maintenance fund at any time to fund the cost of capital maintenance in accordance with the capital maintenance plan.

The operator must not pay money out of the capital maintenance fund—

in the prescribed circumstances; or

to fund any matter or thing that is prescribed.