Major overhaul of retirement villages law in New South Wales and Victoria: What operators need to know

• 1. Gazetting of documents

  Under the NSW Regulation 2017, the general inquiry document and disclosure statement were contained in the regulation’s schedules. However, the NSW Regulation 2025 has relocated these prescribed forms to the NSW Government Gazette (Gazette). Operators must now ensure their general inquiry document and disclosure statement align with the versions published in the Gazette. In contrast, the standard form village contract, condition report, form of appointment of proxy and termination notice remain within the regulation itself (despite the consultation draft proposing to move the form of appointment of proxy and termination notice to the Gazette). 

  While this change makes it easier for the Government to amend the forms, operators may find it more difficult to locate the correct forms and to identify when amendments have been made to the forms. 

  Operators are used to monitoring legislative changes in NSW RV Act and regulation, but are likely to be less familiar with monitoring the Gazette, increasing the risk that important updates may be missed. Operators should familiarise themselves with the Gazette to ensure compliance and familiarity with where these forms are located. 

• 2. Asset management plan requirements

  The NSW Regulation 2025 contains a shortened list of what must be recorded in the asset register for each major item of capital in the asset management plan.[1] The list no longer requires the brand and model of the item or the serial number, making the inclusion of these items on the register optional. The removal of the requirement to include these items will reduce the administrative burden of maintaining the asset register; it will now be the responsibility of the operator to keep their own record of these items voluntarily. 

  Under the NSW Regulation 2025, the following information must be recorded in the asset register: 

  a. a brief description of the item; 

  b. the purchase price;

  c. the date of purchase; 

  d. the remaining effective life; 

  e. the asset ID number; and 

  f. for a shared item of capital – the name of each other village or aged care facility that used the item.[2] 

• 3. Capital maintenance

  The content of the capital maintenance report required to be included in proposed annual budgets for some operators has changed. The operator is now only required to include proposed dates for capital maintenance for major items of capital the budget year rather than next three years. 

  Another important change in the NSW Regulation 2025 is the replacement of ‘effective life’ with ‘remaining effective life’ for capital items. The new definition is less prescriptive and the Regulatory Impact Statement notes this change is intended to give operators and residents a better indicator of when an item should be replaced. Under the NSW Regulation 2025, operators are now allowed the choice between using the tax ruling, or self-assessing the effective life of their capital items; which has the intention of providing operators flexibility in determining what method best reflects the actual condition of a capital item.[3] 

• 4. New offence provisions

  The NSW Regulation 2025 establishes the below rules of conduct (which already exists in the NSW Regulation 2017) as offence provisions: 

  a) operators must develop a strategy for preventing elder abuse; and

  b) operators must not discourage residents from making complaints or pursuing internal disputes. 

Victoria

The Retirement Villages Amendment Act 2025 (Vic) (Vic Amending Act) is due to commence on 1 May 2026 and will amend the Retirement Villages Act 1986 (Vic) (Vic RV Act) to introduce significant changes to the rules for operators in Victoria. We have set out below some key changes introduced by the Vic Amending Act.

• 1. Contract standardisation

  Currently, the Vic RV Act prescribes certain content for residence contracts. However, the Vic Amending Act introduces a standard form contract that will be prescribed by the regulations (similar to the approach taken in other jurisdictions, such as NSW). The prescribed form contract has not been released as at the date of this article. Operators that are bodies corporate will face a penalty of up to 300 penalty units ($61,053) if they do not use the standard form. 

• 2. Financial disclosures

  The Vic Amending Act will require operators to provide an Information Statement to prospective residents in a prescribed form (not yet available).[4] The Information Statement must be published on the operator’s website and be updated annually or following any material changes. The Information Statement must be provided to individuals within 7 days of a request, or with any targeted promotional material sent to an individual. The Information Statement must include details about prescribed insurance, financial and operational matters. 

• 3. Extended cooling-off period

  The Vic Amending Act extends the cooling-off period for incoming residents who have signed a residence contract from 3 to 7 business days.[5] This now mirrors the 7-business day cooling-off period available to prospective residents in NSW. 

• 4. Termination for health and safety reasons

  The process for terminating a residence contract on the grounds of health and safety is proposed to be amended by the insertion of a new s 16H into the Vic RV Act. The new provisions provide that operators can terminate a residence contract if: 

  1. the resident has care needs that cannot be adequately supported by:
     1. the village operator;
     2. a Commonwealth approved home care provider; or
     3. an NDIS provider; and
  2. there is a substantial risk to the health and safety of the resident or others if they remain in the village.

  Previously, if the operator sought to terminate the contract on health and safety grounds it was required to obtain a certificate signed by 2 medical practitioners stating that the resident needs care of a kind not available at the village. 

  Termination however cannot proceed without VCAT approval. If approved by VCAT, the operator may issue a formal termination notice to the resident specifying:

  1. the basis for termination; and
  2. the date by which the resident must vacate (not earlier than the notice date or VCAT’s recommended time). 
• 5. Capital maintenance requirements

  The Vic Amending Act introduces provisions regarding capital repairs and maintenance which draw heavily on the position in NSW. 

  A new s 38BG defines ‘capital maintenance’, ‘capital replacement’ and ‘item of capital’. The reforms require operators to have a capital maintenance plan which sets out the items of capital they are responsible for that are expected to require capital maintenance or replacement within the next ten years. Operators can pay for capital maintenance from the capital maintenance fund (if one exists) or maintenance charges, but must bear the cost of capital replacement for items of capital it is responsible for. 

  Residents are permitted to arrange maintenance or replacement of capital items that the operator is responsible for if it is urgent and the resident has sought (and failed) to have the operator undertake the maintenance or replacement. The operator must reimburse any reasonable costs of the resident doing so. 

• 6. Entry payments

  Additional protections for entry payments have been introduced requiring that entry payments paid in advance must be paid to an agent or held in trust until the resident is permitted to reside in the village (or certain other conditions are met). Offence provisions have been introduced for misuse of entry payments by an agent.

• 7. Maintenance charges

  The amendments prevent operators from charging residents maintenance charges after the time that a resident delivers up vacant possession of his or her unit. 

• 8. Exit entitlements

  A new section 32I introduces a requirement that the amount owed to an individual as their exit entitlement must be paid to them within the earlier of the date specified in the contract, the day otherwise agreed or within 12 months of their leaving the village. This effectively introduces a requirement that the operator ‘buyback’ the unit within the 12 month period after permanent vacation. If there is a disagreement between the operator and the resident regarding the value of the unit, there is provision for a valuation of the unit to be obtained. 

• 9. Deferred management fees

  The Vic Amending Act introduces provisions requiring deferred management fees to be calculated as a percentage of the resident’s entry payment and by reference to the length of time the resident has lived in the village. Operators will be prohibited from charging a deferred management fee: 

  a. if the individual moves to a different premises in the village that is managed by the operator of the village; or

  b. if the person leaves the village within the settling in period. 

• 10. Making good of deficit

  The Vic Amending Act[6], requires operators to make good a deficit in the accounts for a financial year in the village and must not, except in the circumstances prescribed by the regulations:

  1. carry forward a deficit into the following financial year;
  2. request special additional payments from residents to cover a deficit;
  3. increase maintenance charges during a financial year to make up for a deficit;
  4. use maintenance charges collected in a financial year to cover a deficit;
  5. use the capital maintenance fund to make up for a deficit; or
  6. charge a resident of the village interest in respect of a deficit. 
• 11. Dispute resolution

  New Part 6D sets out a structured approach to dispute resolution. 

  The new Part 6D largely reflects the current Part 6A, Division 3, dispute mediation provisions by requiring an operator to establish a procedure for dealing with village disputes and including certain requirements for that procedure (including that the procedure cannot prevent a party to a dispute being represented by another person). The new dispute resolution scheme also requires formal notice to be given to residents in relation to any village dispute (including management or resident disputes). If a resident who is a complainant does not consent to participating in the village’s dispute resolution procedure, the operator must not proceed with any action under that procedure.[7]

  A resident can seek advice on a dispute from the Director of Consumer Affairs Victoria, or from an officer or employee of the village.[8] It is an offence for an operator to take any action that may be regarded as deterring someone from giving notice of a dispute or causing a resident detriment because they have, or intended to give notice of the dispute.[9] If requested by a resident, the village dispute procedure must be provided to them.[10] 

  Operators are required to nominate a primary and alternate contact for the village for receipt of dispute notices. The alternate contact must be part of senior management. A notice of a dispute can be given to the alternate contact if the dispute involves the primary contact or the primary contact is not available or not empowered to deal with the dispute. An exemption can be sought from nominating an alternative contact person from the Director of Consumer Affairs Victoria in certain circumstances.

  All village disputes must be recorded by operators, including records of any outcome reached and the action taken (if any) in relation to the dispute.

• 12. Conciliation of village disputes

  Part 6E of the Vic Amending Act introduces a new conciliation scheme for village disputes. The Secretary to the Department of Government Services (Secretary) is responsible for administering the scheme. 

  A resident, operator or proprietor may apply for conciliation, and former residents may apply within 6 months of receiving their exit entitlement. 

  Following receipt of an application, the Secretary must assess whether the dispute is suitable for conciliation and notify impacted parties of the decision within 10-business days. Factors include:

  1. other disputes or legal proceedings;
  2. good faith participation;
  3. prior resolution attempts;
  4. likelihood of settlement; and
  5. compliance with information requests. 

  In conducting conciliation, the Secretary must ensure that each party to the dispute is given a reasonable opportunity to give information to the Secretary about the facts and issues in dispute and make submissions about the dispute. The Secretary may make any inquiries and ask a party to a matter to provide further information, documents or evidence relating to a matter. 

• 13. Codes of Practice

  The Vic Amending Act enables the making of regulations for Codes of Practice for operators. The Codes of Practice will regulate such matters as marketing, disclosures and village operation and administration. Details of the proposed Codes of Practice are not yet available.[11]  

• 14. Emergency planning

  The reforms in the Vic Amending Act will require operators to prepare and maintain an emergency plan, conduct annual safety inspections and evacuation drills and display key safety information.[12] Unrestricted access to the village must be provided by operators to emergency workers and care providers. 

• 15. Governance and meetings

  The introduction of sections 33A – 33Q of the Vic RV Act sets out a new framework for residents' meetings. Helpfully, the Vic Amending Act includes provisions relating to holding residents' meetings virtually. If the meeting is conducted using technology, the notice for the meeting must state whether the meeting is being held exclusively online or hybrid, the name of the technology being used (e.g. Zoom, Microsoft Teams), the contact details of a person who can assist with the use of technology and any prescribed information. Section 33G provides that residents participating via technology are considered present and their votes count as in-person votes.

Moving forward in times of regulatory change

The recent and proposed reforms to retirement village legislation in Victoria and New South Wales reflect a broader regulatory shift toward enhancing transparency, accountability, and resident protections across the sector. 

Together, these reforms signal a maturing regulatory environment that prioritises resident welfare, operational transparency, and sector accountability. Operators across both jurisdictions will need to adapt to new compliance obligations.

Widespread reform 

In addition to New South Wales and Victoria, there are changes to legislation governing retirement villages taking place in other Australian jurisdictions. Across the reform, there is a theme of increased consumer protection and improved regulatory efficiency.

Western Australia

Last year, the Retirement Villages Amendment Bill 2024 (WA) was passed, with certain parts having commenced, however the commencement date for the remaining sections of the act is yet to be fixed by proclamation. Some of the key changes include: 

1. mandatory payment of exit entitlements (section 29 of Part 2, Division 1 – yet to commence) or completion of buy-back of strata titled properties for former residents (section 35 of Part 2, Division 1 – yet to commence) within 12 months of a resident’s departure (similar to section 32I of the Vic Amending Act); and
2. new operator disclosure obligations which require the provision of earlier, clearer information on the type of tenure offered, availability of facilities and services and costs of entering, living in, and leaving a village through the publication of a community arrangement statement (section 14B of Part 2, Division 1 – yet to commence) and a prospective resident information statement (section 14C of Part 2, Division 1 – yet to commence).

South Australia

Last year, the Retirement Villages (Miscellaneous) Amendment Act 2024 (SA Amending Act) was passed and will commence on 2 February 2026. Draft regulations are under review having undergone a consultation period earlier this year. Some of the key changes being introduced by the SA Amending Act include: 

1. the mandatory statutory repayment period for exit entitlements will be reduced from 18 months to 12 months;
2. the payment of capital fund contributions payable on exit will be capped to a maximum of 12.5% of the current market value of the residence; and
3. where remarketing fees are not covered in the residence contract, these fees will be limited to the reasonable costs incurred by the operator in remarketing the residence.

_{[1] Section 37(2) of the NSW Regulation 2025.} 

_{[2] Section 37 of the NSW Regulation 2025.} 

_{[3] Section 38 of the NSW Regulation 2025.} 

_{[4] Section 19 of the Vic Amending Act (which proposes to insert a new s22 into the Vic RV Act).} 

_{[5] Section 19 of the Vic Amending Act (which proposes to insert a new s26X into the Vic RV Act).}

_{[6] Section 49 of the Vic Amending Act (which proposes to insert a new 38BF of the Vic RV Act).}

_{[7] Section 57 of the Vic Amending Act (which proposes to insert a new section 38O into the Vic RV Act).} 

_{[8] Section 57 of the Vic Amending Act (which proposes to insert a new section 38T into the Vic RV Act).}

_{[9] Section 57 of the Vic Amending Act (which proposes to insert a new section 38U into the Vic RV Act).}

_{[10] Section 57 of the Vic Amending Act (which proposes to insert a new section 38W into the Vic RV Act).}

_{[11] Section 65 of the Vic Amending Act (which proposes to insert a new section 44 into the Vic RV Act).} 

_{[12] Section 52 of the Vic Amending Act (which proposes to insert a new Division 3 of Part 6A into the Vic RV Act).}