On 5 June 2014, the Government tabled provisions to amend the Retirement Villages Act 1999 (NSW) (the Act) that were scheduled to commence from 4 July 2014 with the commencement of the Statute Law (Miscellaneous Provisions) Bill 2014 (the Bill). Those changes to the Act have since been withdrawn.
The Bill commenced on 4 July 2014 without the amendments to the Act included. They had been removed by the legislative council on 18 June 2014 prior to the Bill being passed.
In summary, the key provisions of the Act that were to be amended by the Bill were as follows:
- The definition of “registered interest holder” at section 7 of the Act had been amended to change the term “registered” in the definition to “registrable”. This meant that a resident will be a registered interest holder without the operator having to actually register the lease at Land and Property Information NSW (LPI).
- The definition of “capital gain” at section 7A of the Act had been amended to remove the words “less any costs associated with the subsequent sale or lease of the premises”.
- The meaning of “prescribed CPI variation” at section 102A of the Act had been amended so that at subsection (a), a variation in recurrent charges is calculated at “the CPI published most recently before the date that was 12 months before the date of the proposed variation”. This section currently states “the CPI published most recently before the village contract was entered into”.
- Section 180 of the Act relating to the payment of a refund to a former occupant who was a registered interest holder had been amended so that the note at the beginning of the section is removed and the terms “following the sale of the premises” were replaced with “under a village contract” at subsection 180(2).
- We also considered these proposed changes in our article of 5 June 2014. To view a copy, click here.