New South Wales Consolidated Acts

RETIREMENT VILLAGES ACT 1999 - SECT 105A

105A Recurrent charges varied otherwise than by a fixed formula-not exceeding variation in CPI

(1) This section applies to the variation of recurrent charges payable under a village contract if:

(a) the contract provides that recurrent charges are to be varied otherwise than in accordance with a fixed formula, and

(b) the variation does not exceed the variation that would result from the recurrent charges being increased in proportion to the variation in the Consumer Price Index (since the recurrent charges were last varied) and rounded to the nearest whole dollar.

(2) In relation to a proposed variation in recurrent charges, the variation in the Consumer Price Index since the recurrent charges were last varied is taken to be the difference between:

(a) the Consumer Price Index published most recently before those charges were last varied, and

(b) the Consumer Price Index published most recently before the written notice of the proposed variation is given.

(3) The operator of a retirement village must give at least 14 days’ written notice of any proposed variation to the recurrent charges.

(4) The notice must specify:

(a) the amount of the new recurrent charges, and

(b) the date from which the new recurrent charges are payable, and

(c) such other information as may be prescribed by the regulations.

(5) A resident of a retirement village is not required to pay any increase in his or her recurrent charges to which this section applies until notice of the increase is given as required by this section.

(6) A notice given under this section may be cancelled by a later notice or a later notice may provide for a lesser increase than the increase specified in the earlier notice.