RETIREMENT VILLAGES ACT 1986 - SECT 38AA Formula for calculation of adjusted maintenance charge

RETIREMENT VILLAGES ACT 1986 - SECT 38AA

    (1)     The adjusted maintenance charge for a relevant financial year for an existing retirement village or a new retirement village that has been in operation for at least one relevant financial year must be determined in accordance with subsection (2).

    (2)     For the purposes of subsection (1), the adjusted maintenance charge must be determined for each relevant financial year for the retirement village in accordance with the formula—

where—

        A     is—

              (i)     subject to subparagraph (ii), the adjusted maintenance charge for the previous relevant financial year for the village; or

              (ii)     in the case of a new retirement village that has been in operation for only one relevant financial year, the maintenance charge for that relevant financial year for the village;

        B     is the sum of the consumer price index numbers for each of the reference periods ending in the previous relevant financial year for the village;

        C     is the sum of the consumer price index numbers for each of the reference periods ending in the relevant financial year immediately preceding the previous relevant financial year for the village.

    (3)     The amount obtained by the application of the formula set out in subsection (2) may be rounded to the nearest multiple of 10 cents.

    (4)     In this section—

"consumer price index" means the all groups consumer price index for Melbourne in original terms published by the Australian Bureau of Statistics;

"relevant financial year" means, in respect of a retirement village, a period that consists of 12 consecutive months commencing on the date fixed by the manager of the retirement village.

S. 38A inserted by No. 4/2005 s. 16.