Australian Capital Territory Numbered Regulations

RETIREMENT VILLAGES REGULATION 2013 (NO 5 OF 2013) - REG 37

    (1)     The notice accompanying a proposed annual budget must include the following statements:

        (a)     the operator must provide the information in relation to the proposed expenditure that the residents committee or, if there is no residents committee, a resident reasonably requests;

        (b)     the operator must not spend money received by way of recurrent charges otherwise than in accordance with the approved annual budget, except in a way that would be only—

              (i)     a minor amendment of the approved annual budget; or

              (ii)     an amendment between items in the approved annual budget if the amendment does not reduce the level of services provided and does not cause total expenditure to be exceeded.

    (2)     If the recurrent charges within the budget have been increased since the previous annual budget and the Act

, section 151 (1) (Recurrent charges amended otherwise than by fixed formula—exceeding variation in CPI) applies to that increase, the notice accompanying a proposed annual budget must also include the following statements:

        (a)     it is a requirement of the Retirement Villages Act 2012

, section 159 (Proposed annual budget) that the operator of the village give each resident a copy of the proposed annual budget for the financial year of the village at least 60 days before the beginning of the financial year to which the budget relates;

        (b)     it is a requirement of the Retirement Villages Act 2012

, section 162 (Residents' consent to spending) that the residents—

              (i)     tell the operator whether they consent or do not consent to the proposed budget; and

              (ii)     if the residents do not consent to the proposed budget—state which item in the proposed budget they object to;

        (c)     if the operator is not told whether the residents consent or do not consent to the proposed budget, the residents are taken to have refused consent.

    (3)     Subsection (4) applies if—

        (a)     the recurrent charges within the budget have not been increased since the previous annual budget; or

        (b)     the recurrent charges have been increased but the Act

, section 159 does not apply to the increase.

    (4)     The notice accompanying a proposed annual budget must also include whichever of the following statements applies:

        (a)     the residents are taken to have consented to the proposed annual budget because the recurrent charges have not been increased since the previous annual budget;

        (b)     the residents are taken to have consented to the proposed annual budget because the increase in the recurrent charges is in accordance with the formula set out in the village contract;

        (c)     the residents are taken to have consented to the proposed annual budget because the increase in the recurrent charges is not more than the increase in the Consumer Price Index.