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This is a Bill, not an Act. For current law, see the Acts databases.
Queensland
Retirement Villages
Amendment Bill 2006
Queensland
Retirement Villages Amendment Bill 2006
Contents
Page
1 Short title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
2 Commencement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
3 Act amended . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
4 Replacement of s 3 (Main objects) . . . . . . . . . . . . . . . . . . . . . . . . 6
3 Objects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
5 Amendment of s 10 (What is a residence contract) . . . . . . . . . . . 7
6 Amendment of s 12 (What is a service agreement) . . . . . . . . . . . 8
7 Replacement of s 13 (What is a public information document) . . 8
13 What is a public information document. . . . . . . . . . . . 8
8 Amendment of s 15 (What is an exit fee) . . . . . . . . . . . . . . . . . . . 8
9 Amendment of s 16 (What is an exit entitlement). . . . . . . . . . . . . 9
10 Amendment of s 20 (What is a maintenance reserve fund
contribution) ..................................... 9
11 Amendment of s 21 (What is a retirement village dispute). . . . . . 10
12 Amendment of s 28 (Registration of retirement village scheme) . 10
13 Insertion of new s 28A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
28A Deregistration of retirement village scheme . . . . . . . . 10
14 Amendment of s 29 (Appeal to District Court) . . . . . . . . . . . . . . . 11
15 Amendment of s 30 (Time for making appeals) . . . . . . . . . . . . . . 11
16 Replacement of s 36 (Scheme operator to give notice about
inaccuracy in public information document) . . . . . . . . . . . . . . . . . 12
36 Scheme operator to give notice about inaccuracy in
public information document . . . . . . . . . . . . . . . . . . . 12
17 Amendment of s 37 (Public information document forms part of
residence contract) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
18 Replacement of s 44 (Person signing residence contract to be
given copy) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
44 Person signing residence contract to be given copy . 13
19 Amendment of s 45 (Content of residence contract) . . . . . . . . . . 14
2
Retirement Villages Amendment Bill 2006
20 Insertion of new s 45A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
45A Scheme operator to give notice of end of cooling-off
period in particular circumstances . . . . . . . . . . . . . . . 14
21 Amendment of s 46 (Dealing with ingoing contribution) . . . . . . . . 14
22 Amendment of s 54 (Resident may ask for estimate statement
of resident's exit entitlement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
23 Replacement of ss 56-58. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
56 Interpretation for div 5 . . . . . . . . . . . . . . . . . . . . . . . . 15
57 Application of div 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
58 Necessary reinstatement work . . . . . . . . . . . . . . . . . . 16
24 Amendment of s 59 (Scheme operator to ensure reinstatement
work to be completed) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
25 Amendment of s 61 (Who pays for work in freehold interest
scheme) ........................................ 18
26 Replacement of s 62 (Who pays for work in leasehold or
licence scheme) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
62 Who pays for work in leasehold or licence scheme . . 18
27 Amendment of s 63 (When former resident's exit entitlement
payable) ........................................ 19
28 Amendment of s 65 (Operator to tell resident of all offers for
accommodation unit) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
29 Amendment of s 68 (Costs of selling) . . . . . . . . . . . . . . . . . . . . . 20
30 Insertion of new s 70A and pt 3, div 5A . . . . . . . . . . . . . . . . . . . . 20
70A Valuer's independence . . . . . . . . . . . . . . . . . . . . . . . . 20
Division 5A Relative's right to reside
70B Relative's right to reside after death or vacation. . . . . 20
31 Amendment of s 74 (Form and content of public information
document) ....................................... 22
32 Amendment of s 75 (Accommodation information) . . . . . . . . . . . 22
33 Amendment of s 79 (Facilities information) . . . . . . . . . . . . . . . . . 22
34 Amendment of s 83 (Dispute resolution information) . . . . . . . . . . 23
35 Amendment of s 84 (Public information document to be given
to prospective resident) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
36 Replacement of s 90 (Responsibility for capital improvement). . . 23
90 Responsibility for capital improvement of retirement
village .................................. 23
90A Responsibility for capital improvement of resident's
accommodation unit . . . . . . . . . . . . . . . . . . . . . . . . . . 23
90B Residents jointly responsible for capital
improvements requested at residents meeting. . . . . . 24
3
Retirement Villages Amendment Bill 2006
90C Responsibility of former resident for capital
improvement ............................ 24
90D Quotes for capital improvements . . . . . . . . . . . . . . . . 24
90E Money received for capital improvement . . . . . . . . . . 25
37 Amendment of s 92 (Amount of capital replacement fund) . . . . . 26
38 Amendment of s 93 (Capital replacement fund budget) . . . . . . . . 27
39 Amendment of s 98 (Amount of maintenance reserve fund) . . . . 27
40 Amendment of s 99 (Maintenance reserve fund budget) . . . . . . . 28
41 Amendment of s 102 (Charges for personal services for former
residents) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
42 Insertion of new s 102A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
102A General services charges budget. . . . . . . . . . . . . . . . 30
43 Amendment of s 103 (Working out and paying charges for
general services for residents) . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
44 Replacement of s 104 (Working out and paying general
services charges for former residents) . . . . . . . . . . . . . . . . . . . . . 31
104 Working out and paying charges for general
services for former residents . . . . . . . . . . . . . . . . . . . 31
45 Amendment of s 105 (General services charges for unsold
right to reside in accommodation units) . . . . . . . . . . . . . . . . . . . . 32
46 Replacement of s 106 (Increasing general services charges) . . . 33
106 Increasing charges for general services. . . . . . . . . . . 33
47 Amendment of s 107 (Resident's responsibility for paying
increased general services charge) . . . . . . . . . . . . . . . . . . . . . . . 33
48 Insertion of new s 107A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
107A Considering more cost-effective alternate services . . 34
49 Amendment of s 108 (New services to be approved by majority
of residents) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
50 Amendment of s 110 (Scheme operator must insure village). . . . 35
51 Replacement of s 112 (Quarterly financial statements) . . . . . . . . 35
112 Quarterly financial statements . . . . . . . . . . . . . . . . . . 35
52 Amendment of s 113 (Annual financial statements) . . . . . . . . . . . 36
53 Insertion of new s 113A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
113A Classification of expenditure. . . . . . . . . . . . . . . . . . . . 37
54 Amendment of s 127 (Residents committee) . . . . . . . . . . . . . . . . 38
55 Insertion of new ss 129A and 129B . . . . . . . . . . . . . . . . . . . . . . . 38
129A Minutes of meetings . . . . . . . . . . . . . . . . . . . . . . . . . . 38
129B Residents committee may require scheme operator
to attend meeting about budgets . . . . . . . . . . . . . . . . 39
4
Retirement Villages Amendment Bill 2006
56 Amendment of s 130 (Residents may make, change or revoke
by-laws) .......................................... 39
57 Amendment of s 132 (Other meetings) . . . . . . . . . . . . . . . . . . . . 39
58 Replacement of pt 7, div 4, hdg (Proxy voting and postal voting). 40
59 Amendment of s 133 (Voting) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
60 Replacement of pt 10, div 4 (Requests to chief executive to
make application) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Division 4 Group applications
173 Application to tribunal by group of residents. . . . . . . . 42
Division 5 Representation
174 Who may represent a resident before the tribunal . . . 42
61 Amendment of s 191 (Tribunal orders generally) . . . . . . . . . . . . . 42
62 Insertion of new pt 15, div 1, hdg . . . . . . . . . . . . . . . . . . . . . . . . . 42
63 Insertion of new pt 15, div 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Division 2 Transitional provisions for Retirement Villages
Amendment Act 2006
237A Exit fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
237B Notice about inaccuracy in public information
document ............................. 43
237C Notice of end of cooling-off period . . . . . . . . . . . . . . . 44
237D Reinstatement work . . . . . . . . . . . . . . . . . . . . . . . . . . 44
237E Budgets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
237F General services charges for former residents . . . . . 45
237G Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
64 Amendment of schedule (Dictionary) . . . . . . . . . . . . . . . . . . . . . . 46
2006
A Bill
for
An Act to amend the Retirement Villages Act 1999
s1 6 s4
Retirement Villages Amendment Bill 2006
The Parliament of Queensland enacts-- 1
Clause 1 Short title 2
This Act may be cited as the Retirement Villages Amendment 3
Act 2006. 4
Clause 2 Commencement 5
(1) The following sections commence on 1 January 2007-- 6
· sections 37 to 40 7
· section 42 8
· section 52 9
· section 63, to the extent it inserts section 237E. 10
(2) Sections 50 and 63, to the extent it inserts section 237G, 11
commence on a day to be fixed by proclamation. 12
Clause 3 Act amended 13
This Act amends the Retirement Villages Act 1999. 14
Clause 4 Replacement of s 3 (Main objects) 15
Section 3-- 16
omit, insert-- 17
`3 Objects 18
`(1) The main objects of this Act are-- 19
(a) to promote consumer protection and fair trading 20
practices in operating retirement villages and in 21
supplying services to residents by-- 22
(i) declaring particular rights and obligations of 23
residents and scheme operators; and 24
(ii) facilitating the disclosure of information to 25
prospective residents of a retirement village to 26
ensure the rights and obligations of the residents 27
s5 7 s5
Retirement Villages Amendment Bill 2006
and scheme operator may be easily understood; 1
and 2
(b) to encourage the continued growth and viability of the 3
retirement village industry in the State. 4
`(2) The following are also objects of this Act-- 5
(a) to encourage the adoption of best practice standards by 6
the retirement village industry; 7
(b) to provide a clear regulatory framework to ensure 8
certainty for the retirement village industry in planning 9
for future expansion; 10
(c) to facilitate participation by residents, who want to be 11
involved, in the affairs of retirement villages; 12
(d) to provide for processes for resolving disputes between 13
residents and scheme operators.'. 14
Clause 5 Amendment of s 10 (What is a residence contract) 15
(1) Section 10(1), `a written contract'-- 16
omit, insert-- 17
`1 or more written contracts'. 18
(2) Section 10-- 19
insert-- 20
`(2A) Without limiting the interests that a residence contract may be 21
based on, a residence contract may be based on a freehold 22
interest in an accommodation unit.'. 23
(3) Section 10(3)(d)-- 24
omit, insert-- 25
`(d) restrict the way in which, or the persons to whom-- 26
(i) the right to reside in the retirement village may be 27
disposed of during the resident's lifetime; or 28
(ii) if the contract is based on a freehold interest in an 29
accommodation unit--the resident's interest may 30
be disposed of during the resident's lifetime.'. 31
s6 8 s8
Retirement Villages Amendment Bill 2006
(4) Section 10(2A) and (3)-- 1
renumber as section 10(3) and (4). 2
Clause 6 Amendment of s 12 (What is a service agreement) 3
Section 12(3)-- 4
omit. 5
Clause 7 Replacement of s 13 (What is a public information 6
document) 7
Section 13-- 8
omit, insert-- 9
`13 What is a public information document 10
`A public information document, for a stated retirement 11
village scheme, is a document, in the approved form under 12
section 74,1 giving details about the retirement village 13
scheme.'. 14
Clause 8 Amendment of s 15 (What is an exit fee) 15
(1) Section 15(1), after `liable to pay to'-- 16
insert-- 17
`, or credit the account of,'. 18
(2) Section 15(2)-- 19
omit, insert-- 20
`(2) The exit fee for a residence contract, including an existing 21
residence contract, that a resident may be liable to pay to, or 22
credit the account of, the scheme operator is to be calculated 23
as at-- 24
(a) the day the resident ceases to reside in the 25
accommodation unit to which the residence contract 26
relates; or 27
1 Section 74 (Form and content of public information document)
s9 9 s 10
Retirement Villages Amendment Bill 2006
(b) if a relative of the resident resides in the accommodation 1
unit under section 70B(2)--the sooner of the following 2
days-- 3
(i) the day the relative vacates the accommodation 4
unit; 5
(ii) the day that is 3 months after the resident's right to 6
reside in the accommodation unit under the 7
residence contract is terminated under this Act. 8
`(3) Subsection (2) applies despite anything to the contrary in an 9
existing residence contract. 10
`(4) In this section, a reference to a resident includes a reference to 11
a person, other than a scheme operator, who enters into a 12
residence contract for the purpose of giving someone else a 13
right to reside in the retirement village. 14
15
Example for subsection (4)--
16
Mr Smith enters into a residence contract with a scheme operator which
17
gives Mr Smith's mother the right to reside in the retirement village. For
18
this section, a reference to a resident includes not only Mr Smith's
19
mother who has a right to reside in the retirement village but also Mr
20
Smith.'.
Clause 9 Amendment of s 16 (What is an exit entitlement) 21
(1) Section 16, after `liable to pay to'-- 22
insert-- 23
`, or credit the account of,'. 24
(2) Section 16-- 25
insert-- 26
`(2) In this section, a reference to a former resident includes a 27
reference to a person, other than a scheme operator, who 28
enters into a residence contract for the purpose of giving 29
someone else a right to reside in the retirement village.'. 30
Clause 10 Amendment of s 20 (What is a maintenance reserve fund 31
contribution) 32
Section 20, `a proportion'-- 33
s 11 10 s 13
Retirement Villages Amendment Bill 2006
omit, insert-- 1
`that part'. 2
Clause 11 Amendment of s 21 (What is a retirement village dispute) 3
Section 21-- 4
insert-- 5
`(2) For subsection (1), a retirement village dispute includes a 6
dispute about compliance by a scheme operator or a resident 7
with this Act, whether or not a particular failure to comply is 8
an offence against this Act. 9
`(3) In this section-- 10
resident includes a former resident. 11
12
Note--
13
In some provisions of this Act there is no means of enforcement
14
apparent on the face of the provision but enforcement by the dispute
15
resolution process is available because of this section.'.
Clause 12 Amendment of s 28 (Registration of retirement village 16
scheme) 17
Section 28(5), after `a signed notice'-- 18
insert-- 19
`(a decision notice)'. 20
Clause 13 Insertion of new s 28A 21
After section 28-- 22
insert-- 23
`28A Deregistration of retirement village scheme 24
`(1) This section applies if the chief executive reasonably believes 25
that a retirement village scheme is no longer operating. 26
`(2) The chief executive may, by written notice (a deregistration 27
notice) given to the scheme operator, deregister the scheme, 28
effective from 30 days after the deregistration notice is given 29
to the scheme operator. 30
s 14 11 s 15
Retirement Villages Amendment Bill 2006
`(3) The deregistration notice must state-- 1
(a) the grounds for the chief executive's belief; and 2
(b) that the scheme operator may appeal against the 3
deregistration under section 29.'. 4
Clause 14 Amendment of s 29 (Appeal to District Court) 5
Section 29-- 6
insert-- 7
`(2) The scheme operator may appeal to the District Court against 8
the chief executive's decision to deregister a retirement village 9
scheme.'. 10
Clause 15 Amendment of s 30 (Time for making appeals) 11
(1) Section 30, heading-- 12
omit, insert-- 13
`30 Time for appealing'. 14
(2) Section 30(1), `the decision'-- 15
omit, insert-- 16
`the decision to refuse to register the retirement village 17
scheme'. 18
(3) Section 30(1)(a) and (b), `was'-- 19
omit, insert-- 20
`is'. 21
(4) Section 30(2)-- 22
renumber as section 30(3). 23
(5) Section 30-- 24
insert-- 25
`(2) A person may appeal against a decision to deregister a 26
retirement village scheme only within 28 days after the 27
deregistration notice is given to the person.'. 28
s 16 12 s 16
Retirement Villages Amendment Bill 2006
Clause 16 Replacement of s 36 (Scheme operator to give notice 1
about inaccuracy in public information document) 2
Section 36-- 3
omit, insert-- 4
`36 Scheme operator to give notice about inaccuracy in 5
public information document 6
`(1) This section applies if the particulars in a public information 7
document become inaccurate in a way that may materially 8
affect the interests of a resident of the retirement village to 9
which the public information document relates. 10
`(2) Within 28 days after the scheme operator becomes aware of 11
the particulars becoming inaccurate (the inaccuracy), the 12
scheme operator must make a full written disclosure of the 13
inaccuracy to the chief executive and to each resident of the 14
retirement village who is, or is likely to be, materially affected 15
by the inaccuracy. 16
Maximum penalty--540 penalty units. 17
`(3) Also, the scheme operator must make a full written disclosure 18
of the inaccuracy to a person who has signed a residence 19
contract relating to the retirement village for which the 20
cooling-off period has not ended-- 21
(a) before the cooling-off period ends; or 22
(b) if the scheme operator has a reasonable excuse for 23
failing to make the disclosure before the end of the 24
cooling off period--as soon as practicable after 25
becoming aware of the inaccuracy. 26
Maximum penalty--540 penalty units. 27
`(4) If a person has indicated to the scheme operator that the 28
person intends signing a residence contract relating to the 29
retirement village, the scheme operator must make a full 30
written disclosure of the inaccuracy to the person before the 31
person signs the contract. 32
Maximum penalty--540 penalty units. 33
s 17 13 s 18
Retirement Villages Amendment Bill 2006
`(5) The scheme operator must, as soon as practicable after 1
becoming aware of the inaccuracy, amend the public 2
information document to remove the inaccuracy. 3
Maximum penalty--540 penalty units.'. 4
Clause 17 Amendment of s 37 (Public information document forms 5
part of residence contract) 6
Section 37(3) and (4)-- 7
omit, insert-- 8
`(3) If a provision of a public information document is inconsistent 9
with a provision of any other part of the residence contract, 10
the provision that is more beneficial to the resident prevails. 11
`(4) If a provision of a public information document is inconsistent 12
with a provision of this Act, the provision of this Act 13
prevails.'. 14
Clause 18 Replacement of s 44 (Person signing residence contract 15
to be given copy) 16
Section 44-- 17
omit, insert-- 18
`44 Person signing residence contract to be given copy 19
`When a person signs a residence contract with a scheme 20
operator, the operator must immediately give the person a 21
single bound document comprised of-- 22
(a) a signed copy of the contract; and 23
(b) a public information document relating to the contract, 24
unless the document has already been given to the 25
person under section 84;2 and 26
(c) if it is intended to enter into another contract, the terms 27
of which are known, that is ancillary to the residence 28
contract--an unsigned copy of the other contract. 29
Maximum penalty--100 penalty units.'. 30
2 Section 84 (Public information document to be given to prospective resident)
s 19 14 s 21
Retirement Villages Amendment Bill 2006
Clause 19 Amendment of s 45 (Content of residence contract) 1
(1) Section 45(1)(b) to (n)-- 2
renumber as section 45(1)(d) to (p). 3
(2) Section 45(1)-- 4
insert-- 5
`(b) if the cooling-off period starts on the day the residence 6
contract is signed--the date the cooling-off period ends; 7
(c) if the cooling-off period starts on the day a later event 8
happens or another contract is entered into--the later 9
event or other contract;'. 10
Clause 20 Insertion of new s 45A 11
After section 45-- 12
insert-- 13
`45A Scheme operator to give notice of end of cooling-off 14
period in particular circumstances 15
`(1) This section applies if the cooling-off period for a residence 16
contract starts on the day a later event happens or another 17
contract is entered into. 18
`(2) The scheme operator must, as soon as practicable after the 19
later event happens or the other contract is entered into, give 20
the resident written notice of-- 21
(a) the date the later event happens or the other contract is 22
entered into; and 23
(b) the date the cooling-off period ends. 24
Maximum penalty--100 penalty units.'. 25
Clause 21 Amendment of s 46 (Dealing with ingoing contribution) 26
(1) Section 46(3), `later'-- 27
omit, insert-- 28
`latest'. 29
(2) Section 46-- 30
s 22 15 s 23
Retirement Villages Amendment Bill 2006
insert-- 1
`(4B) Despite subsection (1), if a person receives an amount as an 2
ingoing contribution under a residence contract after the end 3
of the latest day mentioned in subsection (3), the person 4
may-- 5
(a) if the person is lawfully entitled to the amount--keep 6
the amount; or 7
(b) otherwise--pay the amount directly to the person 8
lawfully entitled to it.'. 9
(3) Section 46(6), `subsection (5)'-- 10
omit, insert-- 11
`subsection (7)'. 12
(4) Section 46(7), `subsection (6)'-- 13
omit, insert-- 14
`subsection (8)'. 15
(5) Section 46(4A) to (9)-- 16
renumber as section 46(5) to (11). 17
Clause 22 Amendment of s 54 (Resident may ask for estimate 18
statement of resident's exit entitlement) 19
Section 54(2), from `, unless' to `excuse'-- 20
omit. 21
Clause 23 Replacement of ss 56-58 22
Sections 56 to 58-- 23
omit, insert-- 24
`56 Interpretation for div 5 25
`(1) In this division-- 26
termination date means-- 27
(a) the date a resident's right to reside under a residence 28
contract, including an existing residence contract, in an 29
s 23 16 s 23
Retirement Villages Amendment Bill 2006
accommodation unit in a retirement village is 1
terminated under this Act; or 2
(b) if a relative of the resident has a right to reside in the 3
accommodation unit under section 70B(2)--the date the 4
relative advises the scheme operator, under section 5
70B(5)(d), that the relative wants to enter into a 6
residence contract for the accommodation unit. 7
`(2) In this division, if a person holds a freehold interest in an 8
accommodation unit, a reference to the former resident 9
includes a reference to the holder of the freehold interest, 10
unless, in relation to a particular matter, the residence contract 11
in relation to that particular matter provides otherwise. 12
`57 Application of div 5 13
`(1) This division applies if a resident's right to reside under a 14
residence contract, including an existing residence contract, in 15
an accommodation unit in a retirement village is terminated 16
under this Act. 17
`(2) This division applies despite anything to the contrary in an 18
existing residence contract. 19
`58 Necessary reinstatement work 20
`(1) Within 30 days after the termination date, the former resident 21
and scheme operator under a residence contract are to 22
negotiate in good faith and, if possible, agree in writing on 23
any reinstatement work to be done for the resident's 24
accommodation unit. 25
`(2) If the former resident and scheme operator can not, within the 26
30 days, agree on the reinstatement work to be done-- 27
(a) the scheme operator must give the former resident an 28
itemised quote for doing what the scheme operator 29
considers to be the reinstatement work; and 30
(b) the former resident may give the scheme operator an 31
itemised quote for doing what the former resident 32
considers to be the reinstatement work. 33
`(3) A quote under subsection (2) must be-- 34
s 24 17 s 24
Retirement Villages Amendment Bill 2006
(a) from a qualified tradesperson appropriate for the work; 1
and 2
(b) given within 44 days after the termination date. 3
`(4) If a relative of the former resident has a right under section 4
70B(5) to enter into a residence contract for the 5
accommodation unit with the scheme operator and advises the 6
scheme operator, under section 70B(5)(d), that the relative 7
wants to enter into the residence contract, this section applies 8
to the relative as if the relative were the former resident. 9
`(5) The scheme operator must ensure that the reinstatement work 10
is done with as little inconvenience to the relative as is 11
reasonably possible.'. 12
Clause 24 Amendment of s 59 (Scheme operator to ensure 13
reinstatement work to be completed) 14
(1) Section 59(1)(b)-- 15
renumber as section 59(1)(c). 16
(2) Section 59(1)-- 17
insert-- 18
`(b) a relative of the former resident, mentioned in section 19
58(4), and the scheme operator agree on reinstatement 20
work under section 58; or'. 21
(3) Section 59(2)(a)(ii)-- 22
omit, insert-- 23
`(ii) if the scheme operator and the former resident or the 24
relative agree on another time, the time agreed; or'. 25
(4) Section 59(3)-- 26
omit, insert-- 27
`(3) In this section-- 28
vacation date, of an accommodation unit in a retirement 29
village, means-- 30
(a) for a former resident whose relative has a right to reside 31
in the accommodation unit under section 70B(2)--the 32
s 25 18 s 26
Retirement Villages Amendment Bill 2006
date the relative's right to reside in the accommodation 1
unit under that subsection ends; or 2
(b) otherwise--the date the former resident vacates the 3
accommodation unit.'. 4
Clause 25 Amendment of s 61 (Who pays for work in freehold 5
interest scheme) 6
Section 61, `the cost of reinstatement work'-- 7
omit, insert-- 8
`the cost of the labour and materials for the reinstatement 9
work for the former resident's accommodation unit'. 10
Clause 26 Replacement of s 62 (Who pays for work in leasehold or 11
licence scheme) 12
Section 62-- 13
omit, insert-- 14
`62 Who pays for work in leasehold or licence scheme 15
`(1) This section applies if the former resident's interest in the 16
accommodation unit is a leasehold interest or licence. 17
`(2) If the former resident obtained the interest before the 18
commencement of the 2006 Amendment Act, section 26, the 19
cost of the labour and materials for the reinstatement work for 20
the accommodation unit must be paid by-- 21
(a) to the extent the reinstatement work is required because 22
the former resident caused accelerated wear to the 23
accommodation unit's interior or deliberate damage to 24
the accommodation unit--the former resident; or 25
(b) to the extent the reinstatement work is otherwise 26
required and if the residence contract states who is to 27
make the payment--the person stated; or 28
(c) otherwise-- 29
(i) for a residence contract other than an existing 30
residence contract--the scheme operator; or 31
(ii) for an existing residence contract--the former 32
resident and the scheme operator in the same 33
s 27 19 s 27
Retirement Villages Amendment Bill 2006
proportion as they are to share the gross ingoing 1
contribution on the sale of the right to reside, as 2
provided for in the residence contract. 3
`(3) If the former resident obtained the interest on or after the 4
commencement of the 2006 Amendment Act, section 26, the 5
cost of the labour and materials for the reinstatement work for 6
the accommodation unit must be paid by-- 7
(a) to the extent the reinstatement work is required because 8
the former resident caused accelerated wear to the 9
accommodation unit's interior or deliberate damage to 10
the accommodation unit--the former resident; or 11
(b) to the extent the reinstatement work is otherwise 12
required and if the residence agreement provides that the 13
former resident and the scheme operator are to share any 14
capital gain on the sale of the former resident's interest 15
in the accommodation unit--the former resident and the 16
scheme operator in the same proportion that the capital 17
gain is to be shared; or 18
(c) otherwise--the scheme operator. 19
`(4) If the scheme operator must pay the cost of reinstatement 20
work, it must be paid out of the scheme operator's capital 21
replacement fund.'. 22
Clause 27 Amendment of s 63 (When former resident's exit 23
entitlement payable) 24
(1) Section 63(1)(b)-- 25
omit, insert-- 26
`(b) 14 days after the settlement day.'. 27
(2) Section 63(2), `right to reside is sold'-- 28
omit, insert-- 29
`settlement day'. 30
(3) Section 63(3), penalty, `for subsection (3)'-- 31
omit. 32
(4) Section 63-- 33
insert-- 34
s 28 20 s 30
Retirement Villages Amendment Bill 2006
`(4) In this section-- 1
settlement day means the day on which the sale of the right to 2
reside, to a new resident or the scheme operator, is settled.'. 3
Clause 28 Amendment of s 65 (Operator to tell resident of all offers 4
for accommodation unit) 5
Section 65, heading, `Operator'-- 6
omit, insert-- 7
`Scheme operator'. 8
Clause 29 Amendment of s 68 (Costs of selling) 9
Section 68(1), from `sale proceeds' to `unit on its sale'-- 10
omit, insert-- 11
`gross ingoing contribution on the sale of the right to reside, 12
as provided for in the residence contract'. 13
Clause 30 Insertion of new s 70A and pt 3, div 5A 14
Part 3, division 5-- 15
insert-- 16
`70A Valuer's independence 17
`In a valuation given under this division, a valuer must state 18
any connection to, or agreement with, the scheme operator 19
that may call into question the independence of the valuation. 20
`Division 5A Relative's right to reside 21
`70B Relative's right to reside after death or vacation 22
`(1) This section applies if-- 23
(a) a resident's right to reside in an accommodation unit 24
under a residence contract, including an existing 25
residence contract, is terminated under this Act because 26
the resident dies or vacates the accommodation unit; and 27
s 30 21 s 30
Retirement Villages Amendment Bill 2006
(b) a relative of the resident, although not a party to the 1
residence contract, was living in the accommodation 2
unit when the residence contract was terminated; and 3
(c) the relative has lived in the accommodation unit for at 4
least the 6 months immediately before the residence 5
contract was terminated. 6
`(2) The relative has a right to reside in the accommodation unit 7
for 3 months after the day the residence contract is terminated 8
if the relative agrees to be bound by the terms of the resident's 9
residence contract while the relative continues to live in the 10
accommodation unit. 11
`(3) The relative's agreement must be in writing and given to the 12
scheme operator within 14 days after the day the residence 13
contract is terminated. 14
`(4) During the 3 months, the relative has all the rights and 15
liabilities of a resident under this Act. 16
`(5) If-- 17
(a) the resident's interest in the accommodation unit was a 18
leasehold interest or licence; and 19
(b) no other person has a right under the resident's 20
residence contract to reside in the accommodation unit; 21
and 22
(c) the relative meets the eligibility criteria for a resident of 23
the retirement village; and 24
(d) the relative, at least 14 days before the end of the 25
3 months, advises the scheme operator, in writing, that 26
the relative wants to enter into a residence contract for 27
the accommodation unit; 28
then-- 29
(e) the relative has a right to enter into a residence contract 30
for the accommodation unit; and 31
(f) the scheme operator must enter into a residence contract 32
for the accommodation unit with the relative before the 33
end of the 3 months. 34
`(6) A residence contract entered into under subsection (5) must be 35
on the same terms as would be offered to any other potential 36
s 31 22 s 33
Retirement Villages Amendment Bill 2006
resident of the accommodation unit, as adjusted to include any 1
agreement between the relative and the scheme operator about 2
reinstatement work for the accommodation unit.'. 3
Clause 31 Amendment of s 74 (Form and content of public 4
information document) 5
Section 74(1)-- 6
omit, insert-- 7
`(1) A public information document must-- 8
(a) be in the approved form; and 9
(b) relate to only 1 retirement village scheme.'. 10
Clause 32 Amendment of s 75 (Accommodation information) 11
Section 75(d), after `village'-- 12
insert-- 13
`, including the amount of any excess to which any insurance 14
policy is subject'. 15
Clause 33 Amendment of s 79 (Facilities information) 16
(1) Section 79(a), `facilities'-- 17
omit, insert-- 18
`the facilities'. 19
(2) Section 79-- 20
insert-- 21
`(d) information about when the scheme operator proposes 22
to start levying a charge for the particular facilities 23
mentioned in paragraph (b). 24
25
Example for paragraph (d)--
26
The scheme operator proposes to start levying a charge for the
27
particular facility when the facility is in place.'.
s 34 23 s 36
Retirement Villages Amendment Bill 2006
Clause 34 Amendment of s 83 (Dispute resolution information) 1
Section 83(b), `a village-based dispute resolution panel,'-- 2
omit. 3
Clause 35 Amendment of s 84 (Public information document to be 4
given to prospective resident) 5
Section 84-- 6
insert-- 7
`(2) For subsection (1), if the residence contract consists of more 8
than 1 written contract, the scheme operator must give the 9
copy of the public information document before the 10
prospective resident enters into any of the contracts.'. 11
Clause 36 Replacement of s 90 (Responsibility for capital 12
improvement) 13
Section 90-- 14
omit, insert-- 15
`90 Responsibility for capital improvement of retirement 16
village 17
`(1) A scheme operator is solely responsible for the cost of the 18
retirement village's capital improvement, including the 19
capital improvement of the retirement village's communal 20
facilities owned by the scheme operator. 21
`(2) This section applies subject to sections 90A and 90B. 22
`90A Responsibility for capital improvement of resident's 23
accommodation unit 24
`(1) This section applies if-- 25
(a) a resident gives the scheme operator a written request 26
for a particular capital improvement to the resident's 27
accommodation unit; and 28
(b) the scheme operator makes or agrees to make the capital 29
improvement. 30
s 36 24 s 36
Retirement Villages Amendment Bill 2006
`(2) The resident is solely responsible for the cost of the capital 1
improvement. 2
`90B Residents jointly responsible for capital 3
improvements requested at residents meeting 4
`(1) This section applies if-- 5
(a) residents of a retirement village, by special resolution at 6
a residents meeting, vote to give the scheme operator a 7
written request for a capital improvement to the 8
retirement village; and 9
(b) the scheme operator makes or agrees to make the capital 10
improvement. 11
`(2) All the residents of the retirement village when the vote was 12
taken are jointly responsible for the cost of the capital 13
improvement. 14
`90C Responsibility of former resident for capital 15
improvement 16
`If a former resident stops being responsible, under section 17
104(3),3 to pay a proportion of the general services charges-- 18
(a) the former resident stops being responsible, under 19
section 90A or 90B, for the cost of a capital 20
improvement; and 21
(b) the scheme operator becomes liable for the resident's 22
share of the cost of the capital improvement. 23
`90D Quotes for capital improvements 24
`(1) A resident may give the scheme operator a written request to 25
get quotes for a particular capital improvement to the 26
resident's accommodation unit. 27
3 Section 104 (Working out and paying charges for general services for former
residents)
s 36 25 s 36
Retirement Villages Amendment Bill 2006
`(2) The residents committee may give the scheme operator a 1
written request to get quotes for a particular capital 2
improvement to the retirement village. 3
`(3) If the scheme operator receives a request under subsection (1) 4
or (2), the scheme operator must get at least 2 quotes for 5
carrying out the capital improvement from qualified 6
tradespersons appropriate for the work. 7
`(4) However, the requirement to get at least 2 quotes does not 8
apply if, for exceptional reasons, it is not practicable to get 9
more than 1 quote. 10
`(5) The scheme operator must give copies of the quotes or, if the 11
quotes are voluminous, summaries of the quotes and advice 12
about where the complete quotes may be inspected, promptly 13
to the resident or the residents committee. 14
`(6) Any reasonable cost associated with getting a quote must be 15
paid by-- 16
(a) for a quote requested under subsection (1)--the 17
resident; or 18
(b) for a quote requested under subsection (2)--all residents 19
jointly. 20
`90E Money received for capital improvement 21
`(1) As a condition of agreeing to make a capital improvement, the 22
operator may require the resident or residents to pay the cost 23
of the improvement before it is made. 24
`(2) The scheme operator must keep the money received for the 25
cost of a capital improvement in a trust account on trust for 26
the benefit of the resident or residents. 27
Maximum penalty--540 penalty units. 28
`(3) The scheme operator must not use an amount received for the 29
cost of a capital improvement and standing to the credit of the 30
trust account for a purpose other than the cost of the capital 31
improvement. 32
Maximum penalty--540 penalty units. 33
s 37 26 s 37
Retirement Villages Amendment Bill 2006
`(4) The scheme operator must refund any amount received for the 1
cost of a capital improvement that exceeds the cost of the 2
capital improvement to the resident or residents. 3
Maximum penalty--540 penalty units.'. 4
Clause 37 Amendment of s 92 (Amount of capital replacement fund) 5
(1) Section 92(5), `subsection (3)'-- 6
omit, insert-- 7
`subsection (5)'. 8
(2) Section 92(2) and (3) to (5)-- 9
renumber as section 92(3) and (5) to (7). 10
(3) Section 92-- 11
insert-- 12
`(2) For subsection (1), the report must be-- 13
(a) a full report-- 14
(i) in the 2009 financial year and in every 3rd 15
financial year after that; and 16
(ii) in any other financial year in which substantial 17
changes have been made to the retirement village; 18
and 19
(b) an updated report in every financial year in which a full 20
report need not be obtained.'. 21
(4) Section 92-- 22
insert-- 23
`(4) In having regard to the quantity surveyor's report, the scheme 24
operator must use the scheme operator's best endeavours to 25
implement the surveyor's recommendations in the context 26
of-- 27
(a) the objects of this Act; and 28
(b) any circumstances relevant to the retirement village that 29
apparently were not considered by the quantity 30
surveyor.'. 31
s 38 27 s 39
Retirement Villages Amendment Bill 2006
Clause 38 Amendment of s 93 (Capital replacement fund budget) 1
(1) Section 93(1), after `budget'-- 2
insert-- 3
`(a capital replacement fund budget)'. 4
(2) Section 93(2), `The'-- 5
omit, insert-- 6
`For subsection (1), the'. 7
(3) Section 93-- 8
insert-- 9
`(3) The residents committee may, by written notice given to the 10
scheme operator, ask the scheme operator to give the residents 11
committee a copy of the draft capital replacement fund budget 12
for the financial year at least 14 days before the beginning of 13
the financial year to which the draft capital replacement fund 14
budget relates. 15
`(4) The notice must be given at least 28 days before the beginning 16
of the financial year to which the draft capital replacement 17
fund budget relates. 18
`(5) The scheme operator must comply with the notice.'. 19
Clause 39 Amendment of s 98 (Amount of maintenance reserve 20
fund) 21
(1) Section 98(5), `subsection (4)'-- 22
omit, insert-- 23
`subsection (6)'. 24
(2) Section 98(6), `subsection (3)'-- 25
omit, insert-- 26
`subsection (5)'. 27
(3) Section 98(2) and (3) to (6)-- 28
renumber as section 98(3) and (5) to (8). 29
(4) Section 98-- 30
insert-- 31
s 40 28 s 40
Retirement Villages Amendment Bill 2006
`(2) For subsection (1), the report must be-- 1
(a) a full report-- 2
(i) in the 2009 financial year and in every 3rd 3
financial year after that; and 4
(ii) in any other financial year in which substantial 5
changes have been made to the retirement village; 6
and 7
(b) an updated report in every financial year in which a full 8
report need not be obtained.'. 9
(5) Section 98-- 10
insert-- 11
`(4) In having regard to the quantity surveyor's report, the scheme 12
operator must use the scheme operator's best endeavours to 13
implement the surveyor's recommendations in the context 14
of-- 15
(a) the objects of this Act; and 16
(b) any circumstances relevant to the retirement village that 17
apparently were not considered by the quantity 18
surveyor.'. 19
Clause 40 Amendment of s 99 (Maintenance reserve fund budget) 20
(1) Section 99(1)-- 21
omit, insert-- 22
`(1) The scheme operator must adopt a budget (a maintenance 23
reserve fund budget) for each financial year for the 24
maintenance reserve fund.'. 25
(2) Section 99(2), `The'-- 26
omit, insert-- 27
`For subsection (1), the'. 28
(3) Section 99-- 29
insert-- 30
`(3) The residents committee may, by written notice given to the 31
scheme operator, ask the scheme operator to give the residents 32
s 41 29 s 42
Retirement Villages Amendment Bill 2006
committee a copy of the draft maintenance reserve fund 1
budget for the financial year at least 14 days before the 2
beginning of the financial year to which the draft maintenance 3
reserve fund budget relates. 4
`(4) The notice must be given at least 28 days before the beginning 5
of the financial year to which the draft maintenance reserve 6
fund budget relates. 7
`(5) The scheme operator must comply with the notice. 8
`(6) If, at the end of a financial year for which a budget for the 9
maintenance reserve fund is adopted, there is a surplus or 10
deficit, the surplus or deficit in the maintenance reserve fund 11
must be carried forward and taken into account in adopting 12
the budget for the general services charges for the next 13
financial year. 14
`(7) Subsection (6) applies despite section 106(1).'. 15
Clause 41 Amendment of s 102 (Charges for personal services for 16
former residents) 17
Section 102, from `resident for more than 28 days' to `the 18
village.'-- 19
omit, insert-- 20
`resident-- 21
(a) after the period of notice given under section 52 or 53 22
ends; or 23
(b) if the period of notice given under section 52 is 24
extended--for more than 14 days after the end of the 25
extended period of notice; or 26
(c) if the resident's residence contract is terminated because 27
the resident dies--for more than 28 days after the 28
residence contract is terminated.'. 29
Clause 42 Insertion of new s 102A 30
Part 5, division 7-- 31
insert-- 32
s 43 30 s 43
Retirement Villages Amendment Bill 2006
`102A General services charges budget 1
`(1) The scheme operator must adopt a budget (the general 2
services charges budget) for each financial year for charges 3
for general services. 4
`(2) For subsection (1), the general services charges budget 5
must-- 6
(a) allow for raising a reasonable amount to provide the 7
general services for the financial year; and 8
(b) fix the amount to be raised by way of contribution to 9
cover the amount. 10
`(3) The residents committee may, by written notice given to the 11
scheme operator, ask the scheme operator to give the residents 12
committee a copy of the draft general services charges budget 13
for the financial year at least 14 days before the beginning of 14
the financial year. 15
`(4) The notice must be given at least 28 days before the beginning 16
of the financial year. 17
`(5) The scheme operator must comply with the notice. 18
`(6) If, at the end of a financial year for which a general services 19
charges budget is adopted, there is a surplus or deficit for the 20
charges, the surplus or deficit must be carried forward and 21
taken into account in adopting the general services charges 22
budget for the next financial year. 23
`(7) Subsection (6) applies despite section 106(1).'. 24
Clause 43 Amendment of s 103 (Working out and paying charges for 25
general services for residents) 26
(1) Section 103(7)-- 27
renumber as section 103(8). 28
(2) Section 103-- 29
insert-- 30
`(7) The scheme operator must not include, or provide for, in the 31
charge for general services an amount or component, however 32
s 44 31 s 44
Retirement Villages Amendment Bill 2006
described, that is payable for or towards costs awarded by the 1
tribunal against the scheme operator. 2
Maximum penalty--200 penalty units.'. 3
Clause 44 Replacement of s 104 (Working out and paying general 4
services charges for former residents) 5
Section 104-- 6
omit, insert-- 7
`104 Working out and paying charges for general 8
services for former residents 9
`(1) A former resident of a retirement village is liable for the 10
resident's proportion of charges for general services after the 11
resident vacates the resident's accommodation unit until the 12
first of the following happens-- 13
(a) the right to reside in the accommodation unit is sold; 14
(b) a period of 90 days elapses (the 90 day period); 15
(c) the tribunal orders the scheme operator to pay the 16
former resident's exit entitlement under section 171. 17
`(2) If the former resident's right to reside in the accommodation 18
unit has not been sold within the 90 day period-- 19
(a) the resident and the scheme operator are each liable, 20
after the 90 day period ends, to pay the charges for 21
general services in the same proportion as they are to 22
share the gross ingoing contribution on the sale of the 23
right to reside, as provided for in the residence contract; 24
and 25
(b) the former resident ceases to be liable to continue to pay 26
a proportion of the charges for general services when the 27
first of the following happens-- 28
(i) the right to reside in the accommodation unit is 29
sold; 30
(ii) a period of 9 months after the resident vacates the 31
accommodation unit ends. 32
s 45 32 s 45
Retirement Villages Amendment Bill 2006
`(3) If a former resident's right to reside in an accommodation unit 1
has not been sold within the 90 day period, the scheme 2
operator may-- 3
(a) accrue, as a book debt, the resident's proportion of the 4
charges for general services; and 5
(b) set off the accrued amount against the resident's exit 6
entitlement. 7
`(4) A scheme operator must not charge interest on the accrued 8
amount. 9
Maximum penalty--100 penalty units. 10
`(5) Subsections (1)(b) and (2)(a) do not apply to a former resident 11
under an existing residence contract.'. 12
Clause 45 Amendment of s 105 (General services charges for 13
unsold right to reside in accommodation units) 14
(1) Section 105(a), `resident'-- 15
omit, insert-- 16
`residence'. 17
(2) Section 105(b)-- 18
renumber as section 105(c). 19
(3) Section 105-- 20
insert-- 21
`(b) if the liability of the former resident, who had the right 22
to reside in the accommodation unit, to pay a proportion 23
of the general services charges has ended-- 24
(i) under section 104(3); or 25
(ii) under the terms of the residence contract; or'. 26
(4) Section 105-- 27
insert-- 28
`(2) The scheme operator must pay an amount payable under 29
subsection (1) into the maintenance reserve fund.'. 30
s 46 33 s 47
Retirement Villages Amendment Bill 2006
Clause 46 Replacement of s 106 (Increasing general services 1
charges) 2
Section 106-- 3
omit, insert-- 4
`106 Increasing charges for general services 5
`(1) A scheme operator must not increase the total of general 6
services charges for a retirement village for a financial year by 7
more than the CPI percentage increase for the financial year. 8
Maximum penalty--200 penalty units. 9
`(2) In this section-- 10
CPI means the all groups consumer price index for Brisbane 11
published by the Australian statistician. 12
CPI percentage increase, for a financial year, means the 13
percentage increase between-- 14
(a) the CPI published for the quarter ending immediately 15
before the start of the financial year; and 16
(b) the CPI published for the quarter ending immediately 17
before the end of the financial year. 18
total of general services charges, for a financial year, means 19
the sum of all charges for general services for the financial 20
year, other than the following charges-- 21
(a) a charge for a general service that has been increased by 22
more than the CPI percentage increase for the financial 23
year and that the retirement village residents, by special 24
resolution at a residents meeting, have approved; 25
(b) a charge for a general service that has been increased by 26
more than the CPI percentage increase for the financial 27
year and that is allowed under section 107.'. 28
Clause 47 Amendment of s 107 (Resident's responsibility for paying 29
increased general services charge) 30
Section 107(c), after `premiums'-- 31
insert-- 32
`, or insurance excesses paid,'. 33
s 48 34 s 49
Retirement Villages Amendment Bill 2006
Clause 48 Insertion of new s 107A 1
After section 107-- 2
insert-- 3
`107A Considering more cost-effective alternate services 4
`Before increasing the charge for a particular general service, 5
the scheme operator must consider whether there is a more 6
cost-effective alternative to the general service.'. 7
Clause 49 Amendment of s 108 (New services to be approved by 8
majority of residents) 9
Section 108(2)-- 10
omit, insert-- 11
`(2) Subsection (1) does not apply to-- 12
(a) a personal service; or 13
(b) a service that is the same as a service already supplied 14
under the scheme and introduced as a cost-effective 15
alternative after consideration under section 107A; or 16
(c) another service, if the public information document 17
given to each of the residents stated that the service was 18
proposed to be supplied. 19
`(3) The scheme operator must get at least 2 quotes for supplying 20
the service from qualified tradespersons appropriate for the 21
service. 22
`(4) However, the requirement to get at least 2 quotes does not 23
apply if, for exceptional reasons, it is not practicable to get 24
more than 1 quote. 25
`(5) The scheme operator must give copies of the quotes or, if the 26
quotes are voluminous, summaries of the quotes and advice 27
about where the complete quotes may be inspected, promptly 28
to the residents. 29
`(6) Any cost associated with getting a quote must be paid by the 30
scheme operator. 31
`(7) If any capital improvements are required for the scheme 32
operator to supply the service, the scheme operator may 33
supply the service only if the capital improvements are 34
s 50 35 s 51
Retirement Villages Amendment Bill 2006
requested by the retirement village residents under section 1
90B. 2
`(8) The operator may not charge the residents for the new service 3
before the service is supplied to the residents.'. 4
Clause 50 Amendment of s 110 (Scheme operator must insure 5
village) 6
(1) Section 110(2), penalty, `for subsection (2)'-- 7
omit. 8
(2) Section 110-- 9
insert-- 10
`(3) The insurance may be taken out subject to an excess. 11
`(4) However, for insurance other than public liability insurance, 12
the excess must not be more than the maximum excess 13
prescribed under a regulation, unless the residents, by special 14
resolution at a residents meeting, agree otherwise. 15
`(5) For subsection (4), the residents may not agree to the excess 16
being more than 1% of the insured value of the retirement 17
village.'. 18
Clause 51 Replacement of s 112 (Quarterly financial statements) 19
Section 112-- 20
omit, insert-- 21
`112 Quarterly financial statements 22
`(1) At the request of a resident, the scheme operator must, within 23
28 days after receiving the request, give the resident a 24
quarterly financial statement. 25
Maximum penalty--100 penalty units. 26
`(2) For subsection (1), the statement must list, for the quarter-- 27
(a) the income of, and expenditure from-- 28
(i) the capital replacement fund; and 29
(ii) the maintenance reserve fund; and 30
s 52 36 s 52
Retirement Villages Amendment Bill 2006
(b) the expenditure involved in providing each general 1
service. 2
`(3) For subsection (1), the statement need not be audited, but 3
must be in a form that is capable of being audited. 4
`(4) At the request of the residents committee, the scheme operator 5
must give the residents committee a document that explains-- 6
(a) the expenditure involved in providing each general 7
service; and 8
(b) any increase in the expenditure involved in providing a 9
general service that varies from the expected 10
expenditure for the general service in the budget for 11
charges for general services. 12
Maximum penalty--100 penalty units.'. 13
Clause 52 Amendment of s 113 (Annual financial statements) 14
(1) Section 113(1)-- 15
omit, insert-- 16
`(1) A scheme operator must ensure a financial statement showing 17
the following particulars about the retirement village's 18
operation is given, on request, to a resident within 5 months 19
after the end of each financial year-- 20
(a) income and expenditure of the capital replacement fund 21
for the financial year; 22
(b) income and expenditure of the maintenance reserve fund 23
for the financial year; 24
(c) expenditure involved in providing each general service 25
for the financial year; 26
(d) amounts received for insurance claims relating to the 27
retirement village during the financial year; 28
(e) assets and liabilities relating to the retirement village as 29
at the end of the financial year; 30
(f) interests, mortgages and other charges affecting the 31
retirement village's property as at the end of the 32
financial year. 33
s 53 37 s 53
Retirement Villages Amendment Bill 2006
Maximum penalty--200 penalty units.'. 1
(2) Section 113(2), `The statement must be'-- 2
omit, insert-- 3
`The scheme operator must ensure the statement is'. 4
Clause 53 Insertion of new s 113A 5
Part 5, division 9-- 6
insert-- 7
`113A Classification of expenditure 8
`(1) A regulation may prescribe model rules (model classification 9
rules) about the classification of items of expenditure. 10
`(2) Without limiting subsection (1), the model classification rules 11
may-- 12
(a) classify how a particular item of expenditure must be 13
dealt with; and 14
(b) provide that scheme operators must classify how other 15
items of expenditure must be dealt with. 16
`(3) A scheme operator must comply with the model classification 17
rules in dealing with items of expenditure. 18
`(4) If the model classification rules provide that scheme operators 19
must classify how other items of expenditure must be dealt 20
with, each scheme operator must give the residents of the 21
retirement village written notice of the scheme operator's 22
classification of the items of expenditure by-- 23
(a) giving the notice to the residents committee; or 24
(b) if there is no residents committee--putting the notice in 25
a place in the retirement village where it is likely to be 26
seen by most of the residents of the village. 27
`(5) For this section, an item of expenditure is dealt with if it is-- 28
(a) debited to the capital replacement fund; or 29
(b) debited to the maintenance reserve fund; or 30
(c) levied as a general service charge. 31
s 54 38 s 55
Retirement Villages Amendment Bill 2006
Clause 54 Amendment of s 127 (Residents committee) 1
Section 127(4)-- 2
omit, insert-- 3
`(4) If invited by the residents committee, the scheme operator 4
may attend a residents committee meeting and address the 5
members at the meeting. 6
`(5) If the scheme operator attends a residents committee meeting, 7
the scheme operator must leave the meeting after the scheme 8
operator has addressed the members, or been given a 9
reasonable opportunity to address the members, unless the 10
residents committee invites the scheme operator to remain.'. 11
Clause 55 Insertion of new ss 129A and 129B 12
Part 7, division 1-- 13
insert-- 14
`129A Minutes of meetings 15
`(1) The residents committee must ensure full and accurate 16
minutes are taken of each meeting of the residents committee. 17
`(2) For subsection (1), the minutes must include at least the 18
following particulars-- 19
(a) the date, time and place of the meeting; 20
(b) the names of persons present and details of the capacity 21
in which they attended the meeting; 22
(c) issues discussed and how each issue was decided or 23
dealt with; 24
(d) details of correspondence, reports, notices or other 25
documents tabled. 26
`(3) The minutes must be presented at the next residents 27
committee meeting for confirmation, and if confirmed, a 28
member of the residents committee must sign the minutes as 29
accurate. 30
`(4) At the request of a resident, the residents committee must give 31
the resident access to, or a copy of, the minutes of a residents 32
committee meeting. 33
s 56 39 s 57
Retirement Villages Amendment Bill 2006
`(5) The minutes of a residents committee meeting are to be kept 1
by the residents committee for the retirement village and, if 2
there is no residents committee for the retirement village, the 3
scheme operator. 4
`129B Residents committee may require scheme operator 5
to attend meeting about budgets 6
`(1) The residents committee may, by written notice given to the 7
scheme operator, ask the scheme operator to attend a meeting 8
of the residents committee that is to be held before the start of 9
a financial year to discuss the following for the financial 10
year-- 11
(a) the draft budget for the capital replacement fund; 12
(b) the draft budget for the maintenance reserve fund; 13
(c) the draft budget for charges for general services. 14
`(2) The notice must be given at least 28 days before the beginning 15
of the financial year. 16
`(3) The scheme operator must comply with the notice.'. 17
Clause 56 Amendment of s 130 (Residents may make, change or 18
revoke by-laws) 19
(1) Section 130(5)-- 20
omit. 21
(2) Section 130(6)-- 22
renumber as section 130(5). 23
Clause 57 Amendment of s 132 (Other meetings) 24
(1) Section 132(1) and (2), `or subcommittee'-- 25
omit. 26
(2) Section 132(2), `extraordinary or'-- 27
omit. 28
(3) Section 132-- 29
insert-- 30
s 58 40 s 59
Retirement Villages Amendment Bill 2006
`(3) The scheme operator may attend a residents meeting and 1
address the residents at the meeting-- 2
(a) if the residents meeting is called by the scheme operator; 3
or 4
(b) if the residents meeting is called by the residents 5
committee to vote on a special resolution; or 6
(c) if invited by the residents committee. 7
`(4) If the scheme operator attends a residents meeting called to 8
vote on a special resolution, the scheme operator must leave 9
the meeting after the scheme operator has addressed the 10
meeting, or been given a reasonable opportunity to address the 11
meeting, and the special resolution has been voted on, unless 12
the residents committee invites the scheme operator to remain. 13
`(5) If the scheme operator attends a residents meeting at the 14
residents committee's invitation, the scheme operator must 15
leave the meeting after the scheme operator has addressed the 16
meeting, or been given a reasonable opportunity to address the 17
meeting, unless the residents committee invites the scheme 18
operator to remain. 19
`(6) In this section-- 20
urgent circumstances means circumstances in which it is not 21
prudent to wait for the usual 14 days written notice of a 22
meeting to be given.'. 23
Clause 58 Replacement of pt 7, div 4, hdg (Proxy voting and postal 24
voting) 25
Part 7, division 4, heading-- 26
omit, insert-- 27
`Division 4 Voting'. 28
Clause 59 Amendment of s 133 (Voting) 29
(1) Section 133(3) to (6)-- 30
renumber as section 133(4) to (7). 31
(2) Section 133(1) and (2)-- 32
s 60 41 s 60
Retirement Villages Amendment Bill 2006
omit, insert-- 1
`(1) The following persons are entitled to vote at a meeting of the 2
residents of a retirement village-- 3
(a) either-- 4
(i) 1 resident of each accommodation unit in the 5
retirement village; or 6
(ii) if the residents have, by special resolution, agreed 7
that each resident of the retirement village should 8
be entitled to vote--each resident of the retirement 9
village; 10
(b) while a former resident of an accommodation unit is 11
required under section 1044 to pay the whole or a 12
proportion of the general services charges--1 former 13
resident of the accommodation unit. 14
`(2) The resident's vote may be cast by-- 15
(a) the resident; or 16
(b) a person who the resident has appointed by power of 17
attorney; or 18
(c) another resident of the village who the resident has 19
appointed by signed notice to vote by way of proxy vote 20
at a particular meeting stated in the notice. 21
`(3) A signed notice under subsection (2)(c) appointing another 22
resident to vote by way of proxy vote must not relate to more 23
than 1 meeting.'. 24
(3) Section 133(7), as renumbered, penalty, `for subsection (6)'-- 25
omit. 26
Clause 60 Replacement of pt 10, div 4 (Requests to chief executive 27
to make application) 28
Part 10, division 4-- 29
omit, insert-- 30
4 Section 104 (Working out and paying charges for general services for former
residents)
s 61 42 s 62
Retirement Villages Amendment Bill 2006
`Division 4 Group applications 1
`173 Application to tribunal by group of residents 2
`If, under this Act, a resident of a retirement village may apply 3
to the tribunal, a group of residents of the retirement village 4
may apply jointly to the tribunal about a matter arising from 5
the same or similar facts or circumstances. 6
`Division 5 Representation 7
`174 Who may represent a resident before the tribunal 8
`A resident of a retirement village who is an individual may be 9
represented before the tribunal-- 10
(a) by another resident of the retirement village who is not a 11
lawyer; or 12
(b) by a relative who is not a lawyer; or 13
(c) with the leave of the tribunal, by a lawyer or another 14
person.'. 15
Clause 61 Amendment of s 191 (Tribunal orders generally) 16
Section 191-- 17
insert-- 18
`(4) Without limiting subsection (1), this section applies if a 19
resident applies for a tribunal order under section 169, 170 or 20
171.5'. 21
Clause 62 Insertion of new pt 15, div 1, hdg 22
Part 15, before section 229-- 23
5 Section 169 (Resident's right to apply for an order if threatened with removal,
deprivation or restriction), 170 (Resident may apply for order if given false or
misleading documents) or 171 (Former resident may apply for order for payment of
exit entitlement)
s 63 43 s 63
Retirement Villages Amendment Bill 2006
insert-- 1
`Division 1 Transitional provisions for Act 2
No. 71 of 1999'. 3
Clause 63 Insertion of new pt 15, div 2 4
Part 15, after section 237-- 5
insert-- 6
`Division 2 Transitional provisions for 7
Retirement Villages Amendment Act 8
2006 9
`237A Exit fees 10
`(1) This section applies if, before the commencement of this 11
section-- 12
(a) a resident had ceased residing in an accommodation 13
unit; and 14
(b) the resident had not paid the exit fee under the residence 15
contract to the scheme operator. 16
`(2) For calculating the exit fee the resident may be liable to pay 17
to, or credit the account of, the scheme operator, section 15 18
and any relevant definitions, as in force immediately before 19
the commencement, continue to have effect. 20
`237B Notice about inaccuracy in public information 21
document 22
`(1) This section applies if-- 23
(a) before the commencement of this section, a person had 24
signed a residence contract; and 25
(b) before the commencement, the cooling-off period for 26
the residence contract had not ended; and 27
(c) before the cooling-off period ends, and whether before 28
or after the commencement, the scheme operator 29
becomes aware that the particulars in a public 30
information document are inaccurate in a way that may 31
s 63 44 s 63
Retirement Villages Amendment Bill 2006
materially affect the interests of a resident of the 1
retirement village. 2
`(2) Despite section 36(3)(a), the scheme operator is not required 3
to make a full written disclosure of the inaccuracy to the 4
person before the cooling-off period ends. 5
`(3) However, the scheme operator must make the disclosure as 6
soon as practicable after becoming aware of the inaccuracy. 7
Maximum penalty--540 penalty units. 8
`237C Notice of end of cooling-off period 9
`(1) This section applies if-- 10
(a) the cooling-off period for a residence contract entered 11
into before the commencement of this section starts on 12
the day a later event happens or another contract is 13
entered into; and 14
(b) on or after the commencement, the later event happens 15
or the other contract is entered into. 16
`(2) Despite section 45A(2), the scheme operator is not required to 17
give the resident written notice of-- 18
(a) the date the later event happens or the other contract is 19
entered into; or 20
(b) the date the cooling-off period ends. 21
`237D Reinstatement work 22
`(1) This section applies if, before the commencement of this 23
section-- 24
(a) a resident's right to reside under a residence contract, 25
including an existing residence contract, in an 26
accommodation unit in a retirement village is 27
terminated under this Act; and 28
(b) the scheme operator and the former resident have not, 29
under section 58, as in force immediately before the 30
commencement, agreed on reinstatement work; and 31
(c) the tribunal has not made an order that work be done to 32
reinstate the former resident's accommodation unit. 33
s 63 45 s 63
Retirement Villages Amendment Bill 2006
`(2) Sections 56 to 59 and any relevant definitions, as in force 1
immediately before the commencement, continue to have 2
effect in relation to the reinstatement of the former resident's 3
accommodation unit. 4
`237E Budgets 5
`(1) If, before the commencement of this section, a scheme 6
operator adopted a budget for the capital reserve fund for the 7
2006 financial year, sections 92 and 93 and any relevant 8
definitions, as in force immediately before the 9
commencement, continue to have effect for the budget. 10
`(2) If, before the commencement of this section, a scheme 11
operator adopted a budget for the maintenance reserve fund 12
for the 2006 financial year, sections 98 and 99 and any 13
relevant definitions, as in force immediately before the 14
commencement, continue to have effect for the budget. 15
`237F General services charges for former residents 16
`(1) This section applies if, before the commencement of this 17
section-- 18
(a) a resident of a retirement village has vacated the 19
resident's accommodation unit; and 20
(b) the right to reside in the accommodation unit has not 21
been sold; and 22
(c) the tribunal has not ordered the scheme operator to pay 23
the former resident's exit entitlement under section 171. 24
`(2) Section 104 and any relevant definitions, as in force 25
immediately before the commencement, continue to have 26
effect for working out and paying the general services charges 27
for the former resident. 28
`237G Insurance 29
`(1) This section applies if-- 30
(a) immediately before the commencement of this section, 31
the insurance for a retirement village taken out by the 32
scheme operator is subject to an excess; and 33
s 64 46 s 64
Retirement Villages Amendment Bill 2006
(b) the amount of the excess is more than the maximum 1
excess prescribed under a regulation under section 2
110(4). 3
`(2) During the transitional period, the scheme operator is taken 4
not to have contravened section 110(4) even though-- 5
(a) the residents have not, by special resolution at a 6
residents meeting, agreed to the excess; or 7
(b) the excess may be more than 1% of the insured value of 8
the retirement village. 9
`(3) In this section-- 10
transitional period means the period-- 11
(a) starting on the day this section commences; and 12
(b) ending on the day the insurance contract ends or is 13
renewed or renegotiated.'. 14
Clause 64 Amendment of schedule (Dictionary) 15
(1) Schedule, definitions capital improvement, cooling-off period, 16
excluded contract, general services, maintenance, personal 17
services, repairs and replacement-- 18
omit. 19
(2) Schedule-- 20
insert-- 21
`2006 Amendment Act means the Retirement Villages 22
Amendment Act 2006. 23
accelerated wear means wear that happens more quickly than 24
would have reasonably been expected. 25
capital improvement-- 26
(a) means the first time provision of a capital item; and 27
(b) to the extent it is not inconsistent with paragraph (a), 28
includes a thing that is a capital improvement under a 29
ruling under the Taxation Administration Act 1953 30
(Cwlth) dealing with capital improvement. 31
cooling-off period, for a residence contract, means a 14 day 32
period starting on-- 33
s 64 47 s 64
Retirement Villages Amendment Bill 2006
(a) the day the contract is signed; or 1
(b) if the residence contract is subject to a later event 2
happening or another contract being entered into--the 3
day the later event happens or the other contract is 4
entered into. 5
day to day maintenance, of a capital item, means 6
maintenance of the item that is carried out regularly and with 7
little expense. 8
decision notice see section 28(5). 9
deregistration notice see section 28A(2). 10
excluded contract means a written contract between an 11
approved provider and another person under which the 12
approved provider agrees to provide residential care to the 13
person that is at least equivalent to the standard of care that 14
would be required for the approved provider to meet the 15
approved provider's responsibilities under the Aged Care Act 16
1997 (Cwlth), chapter 4.6 17
general services are services supplied, or made available, to 18
all residents of a retirement village. 19
20
Examples of general services--
21
· management and administration
22
· gardening and general maintenance
23
· a shop or other facility for supplying goods to residents
24
· a service or facility for the recreation or entertainment of residents
gross ingoing contribution means the ingoing contribution 25
before any deductions are made. 26
maintenance, of a capital item-- 27
(a) means the upkeep of the capital item in good condition 28
and efficient working order; and 29
(b) to the extent it is not inconsistent with paragraph (a), 30
includes doing something that, under a ruling under the 31
Taxation Administration Act 1953 (Cwlth) dealing with 32
6 Aged Care Act 1997 (Cwlth), chapter 4 (Responsibilities of approved providers)
s 64 48 s 64
Retirement Villages Amendment Bill 2006
maintenance of capital items, is maintenance of the 1
capital item. 2
personal services are optional services supplied or made 3
available for the benefit, care or enjoyment of a resident of a 4
retirement village. 5
6
Examples of personal services--
7
· laundry
8
· meals
9
· cleaning the resident's accommodation unit
reinstatement work, for an accommodation unit, means the 10
replacements or repairs that are reasonably necessary to be 11
done to reinstate the accommodation unit to a marketable 12
condition having regard to-- 13
(a) the condition of the accommodation unit at the start of 14
the former resident's occupation; and 15
(b) the general condition of other accommodation units in 16
the retirement village that are comparable with the 17
accommodation unit. 18
relative, of a resident, means the resident's spouse, mother, 19
step-mother, father, step-father, sister, step-sister, half-sister, 20
brother, step-brother, half-brother, child or step-child. 21
repairs, to a capital item-- 22
(a) means the restoration of the item by fixing or replacing 23
parts of the item; and 24
(b) to the extent it is not inconsistent with paragraph (a), 25
includes doing something that, under a ruling under the 26
Taxation Administration Act 1953 (Cwlth) dealing with 27
repairs to capital items, is repairs to the capital item. 28
replacement, of a capital item-- 29
(a) means the substitution of the same type of item or an 30
equivalent item; and 31
(b) to the extent it is not inconsistent with paragraph (a), 32
includes doing something that, under a ruling under the 33
Taxation Administration Act 1953 (Cwlth) dealing with 34
replacement of capital items, is replacement of the 35
capital item.'. 36
s 64 49 s 64
Retirement Villages Amendment Bill 2006
(3) Schedule, definition capital items, paragraph (a), `are a 1
resident's contracted responsibility'-- 2
omit, insert-- 3
`, under the residence contract, are to be maintained, repaired 4
and replaced by the resident'. 5
(4) Schedule, definition capital items, paragraph (b), after 6
`village'-- 7
insert-- 8
`, other than items that are body corporate property'. 9
(5) Schedule, definition special resolution, paragraph (b)-- 10
omit, insert-- 11
`(b) by at least three-quarters of the persons entitled to vote 12
who vote-- 13
(i) personally or by proxy at the meeting; or 14
(ii) by postal ballot.'. 15
© State of Queensland 2006
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