Increasing maintenance fees
After setting its maintenance fees for the first time, a retirement village can only increase the amount in keeping with the annual consumer price index (CPI) adjustment. A bigger increase is only allowed if it is either:
- approved by a resolution of the residents’ committee or a resolution of a majority of the residents
- due to the factors set out in section 38 of the Retirement Villages Act 1986:
- increases in salaries or wages paid in accordance with an award
- any charges relating to retirement village land or its use imposed by law.
Special levy
A retirement village may need more money than is collected in ongoing maintenance fees, to meet capital expenses such as unexpected major repairs, a new service or facility.
The operator can only charge a special levy if residents have not been charged one in the past 12 months and either:
- residents agree to the change through a special resolution, which requires the support of at least 75 per cent of residents
- the levy seeks to cover costs due to Victorian or Commonwealth law or the order of a court
- the retirement village contract or its rules make residents responsible for the type of expenditure the special levy is intended to cover; for example, your contract states that residents will have to pay for a new facility like a bowling green or pool.
Last updated: 30/04/2012