Changes to the requirements for retirement village operators will come into effect on 1 May 2026.
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Significant changes to Victoria’s retirement village laws will start from 1 May 2026. The laws will ensure Victorians living in a retirement village will benefit from stronger protections so they retire with peace of mind.
The new legislation is the biggest change to the Retirement Villages Act 1986 since it was first made.
The reforms have been informed by extensive stakeholder feedback, with more than 500 submissions received from residents, their families, industry and consumer advocates.
New terminology
Operator: the person or organisation who is responsible for the daily operation of the retirement village. Previously referred to as the manager.
Proprietor: the person or organisation who is the owner of the retirement village land (other than land owned by a resident or owners corporation).
New notification and exemption requirements for operators
Annual notification requirements for operators
From 1 May 2026, retirement village operators will be required to provide information to Consumer Affairs Victoria (CAV) every year. This information must be updated within 14 days of any change.
The first notification under the new scheme is due from 1 May 2026.
Operators will be required to provide:
- the name, physical address and postal address of the retirement village
- the name and address of the operator of the retirement village
- details of any existing exemptions from the Retirement Villages Act 1986 that apply to their village.
All operators must re-notify CAV online via myCAV, even if the retirement village has previously held a retirement village registration.
Regulations may list additional information which operators will be required to provide.
Operators will be able to make notifications through myCAV from 1 May 2026. Find information on how to create a myCAV account.
Exemptions from the Retirement Villages Act 1986
All existing exemptions from the Act will continue until 1 May 2027.
Operators with an existing exemption must seek and be granted a new exemption by 1 May 2027 via myCAV to continue being exempt from requirements.
Exemptions from the Act will now be granted at the discretion of the Director of CAV for a maximum of 5 years. Exemptions can only be applied for and granted to individual retirement villages. A group of villages can no longer apply for an exemption.
To apply for an exemption, operators must:
- provide details and reasons for the exemption sought
- provide details of any existing exemptions
- notify residents of the application and provide this notice as part of their application.
Once notified by the operator of their intention to apply for an exemption, residents will have 60 days to provide submissions to the Director.
Operators can make exemption applications through myCAV from 1 May 2026.
Find information on how to create a myCAV account.
Before entering a village
Information statements
Information statements will provide essential information about retirement villages to prospective residents and the public.
From 1 May 2026, operators must publish information statements on their websites. They must provide the information statement to prospective residents on request.
An information statement must be in the form approved by the Director. It must contain:
- details of the retirement village, proprietor, operator and any representative of the operator located at the village
- details of the owners corporation (if there is any common property vested in an owners corporation).
Regulations may list additional information which operators will be required to provide in the information statement, including information about insurance arrangements for the retirement village, the contracts that have to be entered into, and financial matters.
The approved information statement form will be provided when the regulations are made. It will be available on the CAV website before 1 May 2026.
Condition reports
From 1 May 2026, operators must provide condition reports to non-owner residents before they move in.
The report must be created using the condition report template and given to the resident on paper (2 copies) or by email.
There are also new requirements for when and how non-owner residents add their own comments, provide the report back to the operator and for how the condition report is used when a non-owner resident exits the village.
The condition report template will be provided in regulations. It will be available on the CAV website before 1 May 2026.
New rights and obligations in retirement village contracts
From 1 May 2026, retirement village contracts must incorporate new rights and obligations.
Requirements for new contracts include:
- Cooling off period: a prospective resident may cancel a retirement village contract within 7 days and will only have to pay an administration fee (which will be an amount set by government). Contracts must clearly state residents have a 7-day cooling‑off right.
- Settling in period (if included): where a contract includes a settling‑in period for a non‑owner resident, it must clearly state dates and notice requirements (and limit what can be charged during that period).
- No undisclosed fees: contracts must not require payment of a fee/cost/charge that was not disclosed in the information statement.
- Fair sharing of capital gains and losses: contracts must not allocate residents a higher share of capital loss than capital gain.
- Exit entitlement method: contracts must set out how a repayable exit entitlement is calculated.
- Owner‑residents will not be required to reinstate their premises: contracts must not include terms requiring an owner resident to alter/reinstate premises in ways the Act does not allow.
New standard form contract
A new standard form contract will be prescribed in regulations.
It will be mandatory for operators to use the standard form contract for new agreements with incoming residents from the date prescribed in regulations.
The standard form contract will be provided when the regulations are made. It will be available on the CAV website before 1 May 2026.
Living in a village
Contract checks
Operators must provide residents with a contract check each year and when a resident asks for one.
Contract checks will help residents understand what would happen financially if they were to exit the village. Contract checks must include information about:
- estimates of any payments and fees that the resident would need to pay if they exit
- estimates of any payments that would be paid to the resident if they exit
- the process and requirements for terminating contracts, selling and vacating a premises.
Operators may only charge a fee for a contract check where a resident has requested it and not given notice of their intention to leave the village.
Contract checks must be provided in the form approved by the Director. The approved form will be available on the CAV website when the regulations are made (before 1 May 2026).
Resident participation
Residents will be better supported to take part in village decision-making through new requirements to inform residents of resident meetings and for the use of technology to conduct meetings.
New requirements include:
- at least 14 days’ notice of meetings to residents who are entitled to vote
- a special resolution of residents is passed before decisions are made about:
- maintenance charges
- variation of services or facilities offered at the village
- village by laws
- minimum number of residents (based on the size of the village) to be present before any business can be conducted
- details of a person that will assist residents to use technology if needed.
At annual general meetings (AGMs), proprietors and operators will need to give residents clearer and more detailed information, including:
- the status of any entry payments or exit entitlements that should have been paid in the previous financial year but are still outstanding, and reasons why
- details of any issues that could affect the proprietor’s ability to pay debts when they fall due in the current financial year
- a summary of money paid into and paid out of the capital maintenance fund for the village
- a copy of the village’s capital maintenance plan, along with a report on how that plan has been carried out.
Village by-laws
New requirements will ensure village by-laws are fair, lawful, and reasonable, while still allowing villages to set appropriate standards for community living.
Village by-laws must not:
- unreasonably limit the keeping of a pet on a resident’s premises
- discriminate against anyone on the basis of a protected attribute under the Equal Opportunity Act 2010
- be inconsistent with any retirement village laws or associated rules.
Regulations may set additional matters for which village by-laws can and cannot be made.
Modification of fixtures and fittings
Non-owner residents will be able to request the consent of the operator of the retirement village to add, remove or alter any fixtures or fittings on the non-owner resident's premises.
Operators must either refuse or provide consent within 14 days of a written request and must not unreasonably refuse a request.
Operators can grant consent subject to reasonable conditions.
Regulations may list certain modifications that can be made by a non-owner resident without an operator’s consent.
Responsibilities for maintenance and repairs
Clearer requirements for maintenance and repairs will ensure that residents and operators understand their responsibilities and obligations.
Operator responsibilities
Operators will be responsible for buildings, structures, plant, machinery and equipment, and infrastructure of a retirement village that is not owned by a resident or on common property belonging to an owners corporation.
Operators must:
- maintain capital items the operator is responsible for in a reasonable condition
- carry out maintenance and replacement within a reasonable time after becoming aware it is needed
- prepare a capital maintenance plan, table it at the AGM and report on implementation
- establish and manage a capital maintenance fund and report on fund usage.
Resident responsibilities
Residents must notify the operator if capital maintenance or replacement is needed for an item that is located within the resident’s premises.
A resident may arrange capital maintenance or replacement themselves only if all of the following apply:
- the work is urgent
- the resident has taken reasonable steps to contact the operator and request immediate action
- the operator does not carry out the required work in time.
Residents are also responsible for any damage they cause other than normal wear and tear.
Further details on the capital items that an operator is and is not responsible for, and works that are considered capital maintenance and urgent capital maintenance, may be listed in regulations.
Emergency planning and safety inspections
Retirement village operators must develop an emergency and evacuation plan for each village and keep these up to date. Operators must also undertake annual safety inspections and evacuation exercises.
More details about emergency and safety requirements may be listed in regulations.
Termination of village contracts
Residents will have stronger procedural protections for the termination of village contracts.
Operators will have clearer steps and clearer expectations for when termination action is appropriate.
Separate pathways are provided for termination for breach of contract and termination for health and safety reasons.
Termination for breach of contract will require:
- the breach of contract to meet the definition of ‘substantial breach’ in the Act
- the resident to be given 28 days to remedy the breach (more time may be requested)
- that the termination is reasonable and proportionate in the circumstances.
Residents can apply to the Victorian Civil and Administrative Tribunal (VCAT) if they dispute the notice to terminate their contract.
Termination for health and safety reasons requires approval from VCAT. An operator can only seek to terminate a contract for health and safety reasons if:
- the resident has care needs that cannot be met in the village (even with external services), and
- the resident would pose a serious risk to the health or safety of themselves or others if they remain in the village.
Complaints and disputes
Complaint and dispute processes will be clearer and fairer, with a strong focus on early resolution, conciliation and respectful treatment.
Operators must establish a procedure for dealing with disputes. They must publish this procedure online and provide it to a resident on request.
The procedure must include:
- details of how residents can give notice of a dispute
- ways for residents to give notice of the dispute verbally and in writing
- how the operator will:
- deal with disputes
- create a written record of the dispute and give it to the resident who raised the dispute
- advise residents of the outcome of that process
- information on how to contact CAV for advice.
Operators must:
- keep a record of all village disputes, including any action taken and outcomes
- present a report at the AGM of residents on the number, nature, outcomes and any changes made to address issues related to disputes
- provide CAV with a copy of the disputes report presented at the AGM, via myCAV.
Find information on myCAV and how to create an account.
Conciliation scheme
A new conciliation scheme will commence on 1 May 2026.
The conciliation scheme will provide a fair, supportive and low‑stress process where an impartial conciliator helps the resident and operator find a practical agreement.
Residents and operators will be able to apply to the scheme to have a matter conciliated or can be referred into the scheme by CAV. Residents and operators will generally be expected to first try to resolve a dispute through the operator’s dispute procedure.
Some matters may not be suitable for conciliation, such as those involving unwilling parties, legislative breaches or cases already before VCAT. If conciliation is not suitable, or resolution of the dispute is not achieved through the scheme, the conciliator will notify parties, and the matter can proceed to VCAT.
More information on how to access the scheme will be available ahead of its launch on 1 May 2026.
Exiting a village
The reforms provide clearer rights and obligations for exiting a village.
When a resident leaves a village
A resident’s formal exit from a village is an important trigger for rights and obligations. This includes determining when a resident stops paying for services within the village and calculating deferred management fees and exit entitlements.
A clearer definition for exit will ensure residents and operators understand when certain payments and processes are due.
The reforms clarify that a resident has permanently exited a village when:
- the resident stops living in the premises
- all personal belongings are removed
- keys are returned, and
- required notice periods end.
Transparency and fairness of exit calculations
Exit entitlements must:
- be calculated by a particular formula (and this formula must be included in the resident’s contract)
- not require that a resident bears a higher proportion of a capital loss than a capital gain.
Deferred management fees can only be charged if calculated as a percentage of the resident’s entry payment and by reference to the total length of time a resident lives in the village.
Clear timeframes and triggers for payment
The maximum time for an operator to pay exit entitlements to a resident will be 12 months.
Payment earlier than 12 months will be required where:
- a residence contract provides for payment earlier than 12 months, or
- a residence contract is terminated, and the resident has permanently exited the village.
Protections for residents as they leave a village
The reforms strengthen protections when exiting a village to ensure residents are treated fairly and supported appropriately.
New protections include:
- clearer limits on ongoing charges after a resident has exited, ensuring residents are not paying for services they no longer receive
- stronger rights for former residents and estates to receive information and timely payment
- a clear process for appointing an independent valuer where the value of a premises or residence right cannot be agreed between an existing resident and the operator.
Clear reinstatement and renovation requirements
New requirements will apply to non-owner residents who enter a retirement village contract on or after 1 May 2026. Under the new requirements, non-owner residents must leave their premises:
- reasonably clean, and
- as far as practicable, in the same condition as when they started living in their premises, taking into account fair wear and tear.
Residents who enter into a retirement village contract on or after 1 May 2026 are not automatically required to renovate when they leave. Renovation obligations only arise where there is a written agreement setting out what renovation will occur, how costs are shared, and how any capital gain or loss will be managed.
Non-owner residents may need to reinstate changes they have made to the premises in order to leave the premises in the same condition as when they moved in, if the changes are not the result of fair wear and tear or were not approved by the operator to remain.
If the operator considers that reinstatement is required, there is now a clear process and timelines for raising the issue with the resident, the completion of work and disputing the need for reinstatement.