Retirement villages provide services and facilities as part of village life. Some are included in the maintenance charge. Others are optional extras, available at an additional cost.
There are a number of key requirements around how services are funded, and how fees can be charged for these.
What are village services and facilities?
Village services and facilities are the services and facilities provided by or on behalf of the operator under the management contract. They cover everything the operator provides to run and maintain the village for residents.
Examples of services and facilities commonly provided in retirement villages include:
- maintenance of gardens and common areas
- management and administration of the village
- recreational facilities such as a pool, gym, bowling green or library
- communal spaces such as function rooms and lounges
- on-site management or reception.
The specific services and facilities provided at each village vary. What is and is not included must be set out in the resident's management contract and in a village’s information statement.
Services funded by the maintenance charge
Some village services and facilities are funded by the maintenance charge, which is the regular fee residents pay to the operator.
The maintenance charge notice sent to residents each year must set out what goods and services the charge covers.
For information on how the maintenance charge is set and how it can be increased, go to Fees and charges: Living in a retirement village.
Optional services
Optional services are services that a resident may choose to use. They are charged separately from the maintenance charge. Residents can choose which optional services, if any, they want to use.
Examples of optional services can include:
- meals and meal delivery
- personal care such as assistance with bathing or dressing
- laundry or cleaning of residents' premises
- transport services.
The availability and cost of optional services must be set out in the management contract and a village’s information statement.
Changing services and facilities
A change to village services or facilities requires a special resolution at a meeting of residents passed by at least three quarters of residents voting at a meeting. This includes reducing or withdrawing a service, increasing it, any other change, or introducing a new service
Only residents for whom the service or facility is, or is proposed to be, available may vote on the variation resolution.
The operator must propose a variation to the services or facilities provided at the retirement village if this is requested by 10 per cent of residents or the residents committee of the retirement village.
For information on how to propose a variation and the meeting process, go to Annual meetings and village governance.
If the maintenance charge needs to increase to fund a change
If an increase in the maintenance charge or a special levy is needed to fund a change in services, the increase must also be approved by a special resolution at a meeting of residents.
For information on special resolutions and the meeting process, go to Annual Meetings and Village Governance.
What happens if the vote does not pass?
If residents vote against a maintenance charge increase above the adjusted rate, the operator cannot levy the higher charge.
If residents do not approve a maintenance charge increase that the operator genuinely needs to maintain current services, the operator may need to reduce services to stay within the approved charge.