New South Wales Consolidated Regulations

RETIREMENT VILLAGES REGULATION 2009 - REG 19

19 Notice accompanying proposed annual budget

(1) For the purposes of section 112 (4) (e) of the Act, the notice accompanying a proposed annual budget must contain the following statements:

(a) the operator must provide such information in relation to the proposed expenditure as the Residents Committee (or, if there is no such Committee established in the village, any resident) reasonably requests,

(b) the operator must not expend money received by way of recurrent charges otherwise than in accordance with the approved annual budget, except for:

(i) a minor variation, or

(ii) a variation between items in the approved annual budget if the variation does not reduce the level of services provided and does not cause total expenditure to be exceeded.

(2) If the recurrent charges within the budget have been increased since the previous annual budget and section 106 (1) of the Act applies to that increase, the notice accompanying a proposed annual budget must also contain the following statements:

(a) it is a requirement of section 112 of the Retirement Villages Act 1999 that the operator of the village supply each resident with a proposed annual budget for the financial year of the village at least 60 days before the commencement of the financial year concerned,

(b) it is a requirement of section 114 of that Act that the residents advise the operator of whether or not they consent to the proposed budget (and, if they do not consent, they must specify the item or items in the proposed budget to which they object),

(c) if the operator is not advised one way or the other, the residents are taken to have refused consent.

(3) If the recurrent charges within the budget have not been increased since the previous annual budget or if those charges have been increased but section 106 (1) of the Act does not apply to that increase, the notice accompanying a proposed annual budget must also contain whichever of the following statements is applicable in the particular case:

(a) the residents are taken to have consented to the proposed annual budget as the recurrent charges have not been increased since the previous annual budget,

(b) the residents are taken to have consented to the proposed annual budget because the increase in the recurrent charges is in accordance with the formula set out in the village contract,

(c) the residents are taken to have consented to the proposed annual budget because the increase in the recurrent charges is not more than the increase in the Consumer Price Index.