New South Wales Consolidated Acts

RETIREMENT VILLAGES ACT 1999 - SECT 106

106 Recurrent charges varied otherwise than by fixed formula

(1) If a village contract provides that recurrent charges are to be varied otherwise than according to a fixed formula, the operator of the village must give at least 60 days’ written notice of any proposed variation to the resident concerned.

Note: A provision to the effect that recurrent charges may be varied by “up to” a certain percentage is an example of such a provision.

(2) The notice must:

(a) specify the amount of the proposed recurrent charges, and

(b) specify the date from which it is intended that the proposed recurrent charges are to be payable, and

(c) contain a brief explanation of the reasons for the variation, and

(d) state that the variation will not take effect unless the residents concerned consent to the variation or the Tribunal orders that it take effect, and

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

(3) 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 (if any) specified in the earlier notice.

(4) For the purposes of the date from which the proposed variation is to take effect, a later notice is taken to have been given on the date on which the earlier notice was given.

(5) However, the period of 30 days specified in section 107 (2) commences, in relation to a later notice, on the date on which the later notice is actually given.

(6) An operator who is the operator of more than one retirement village must deal with each village separately under this section.

(7) The operator of a retirement village must not increase (or attempt to increase) recurrent charges that are to be varied otherwise than according to a fixed formula:

(a) beyond any upper limit specified in the relevant village contract, or

(b) otherwise than in accordance with this section.

Maximum penalty: 50 penalty units.