Victorian overhaul of retirement villages laws – what you need to know

The Retirement Villages Amendment Bill 2024 (Vic) (Amendment Bill) heralds a transformative era for the retirement living sector in Victoria, marking the first comprehensive overhaul of the Retirement Villages Act 1986 (Vic) (Act) in over two decades.

Far more than just a regulatory update, this landmark legislation reshapes the economic and operational foundations of retirement villages in Victoria, aligning the State with trends in other jurisdictions (particularly those on the east coast) while also boldly positioning the State at the forefront of some more prominent safeguards for the ageing population (e.g., the ability to receive home care support limiting an operator's termination rights).  

The Amendment Bill refines and strengthens the pre-existing legislation, introducing new guiding principles to emphasise dignity, respect, and transparency in the interactions between residents and operators.  Notably, the Amendment Bill has furthered the progressive standards contemplated in the earlier draft of the Bill released in 2022 (Exposure Draft).

We've outlined the more significant changes in a table you can download by clicking the "Download PDF" button below. The table includes a comparison to the current Act and the changes made since the release of the Exposure Draft. 

Transitional provisions

Based on currently available information, the proposed amendments affecting financial aspects—including deferred fees, exit entitlements, cessation of maintenance charges, and maintenance and repair obligations—are not expected to apply retrospectively. These changes will likely only apply to residence and management contracts entered into after the Amendment Bill comes into effect.

However, the proposed changes concerning contract termination, disclosure requirements, settling-in periods, and dispute resolution procedures are anticipated to be applicable to both new and existing contracts.

This approach suggests a balanced implementation, aiming to introduce comprehensive reforms while minimising disruption to established agreements and financial models for operators.

How can we help?

While we are not quite at the level of harmonisation across jurisdictions that has been called for by the industry, it is clear that State/Territory Governments across the country are aware of the needs and desires of the seniors living market and we are moving closer to a more consistent legislative framework for the industry as a whole.  

For those operating in multiple States/Territories, this greater consistency will allow for a reduction in administrative costs in implementing varied obligations across jurisdictions.

If you require further information or would like to discuss how these significant changes might affect you, please contact Nikolas Miljkovic and our wider Health, Aged Care and Retirement team.

Authors

Nikolas Miljkovic | Partner | +61 2 8248 3406 | nmiljkovic@tglaw.com.au

Natasya Currie | Lawyer