Stage 2 of the proposed changes to the retirement villages legislation has been delayed.

The draft amendments to the Retirement Villages Regulations 1992 (Regulations) and the draft Fair Trading (Retirement Villages Code) Regulations 2014 (Revised Code) issued in July 2014 were planned to commence from October 2014.  We have been advised that this has been deferred because the Consumer Protection Division of the Department of Commerce did not have adequate time to address the complex matters that came out of the submissions made on the consultation drafts of the Regulations and the Revised Code.

However, there is a replacement interim Code that commenced on 1 October 2014.  It is the Fair Trading (Retirement Villages Interim Code) Regulations (No. 2) 2014 (Interim Code).  The Interim Code is based wholly on the previous interim Code (the Fair Trading (Retirement Villages Interim Code) Regulations 2014) and does not address the wide range of matters proposed in the Revised Code.

Under section 13(2)(d) of the Retirement Villages Act 1992, the administering body must give a prospective resident a copy of the applicable Code in the disclosure materials.  Therefore, after 1 October 2014, you must provide a copy of the Interim Code in the disclosure materials.

For your reference, here is a link to the Interim Code. The Interim Code remains in force for 6 months and will expire on 31 March 2015.  The Government have announced that it intends to replace the Interim Code with the Revised Code before this time, but it remains to be seen whether the Revised Code will commence before or after 1 April 2015 or whether the Government will further delay the proposed changes.