Proactive compliance program - Retirement villages

The proactive compliance program assists retirement village managers with complying with legislative requirements, identifying and rectifying areas of risk and providing general advice. This is achieved through voluntary agency visits and industry seminars.

Proactive compliance visits are designed to educate retirement village managers on the roles and functions of Consumer Protection and also provide a question-and-answer forum in a one-on-one setting. Visits to retirement villages are free and can be booked by calling the Consumer Protection Contact Centre on 1300 304 054.

The proactive compliance checklist below can assist retirement village managers to prepare for a visit. You can familiarise yourself with the changes to the retirement villages laws.

Proactive compliance checklist - Retirement Villages
Description Legislation
Village Details

What is the dominant form of tenure in the village?

  • Lease/licence with a premium?
  • Strata Title with a premium?
  • Purple Title with a premium?
  • Rental. Nominal or no premium paid?

Is there a combination of tenure arrangements in the village?

If so, what form do they take?

Are there any premises occupied under short term residence (as defined in RV Regs that commenced on 1 April 2016). If so, how many?

*sometimes called a rental agreement.

In relation to rentals – how does the village work out the amount of rent that is payable for each rental unit?

What is the average term of rental agreements in the village?

RV Regs 7A item 10

Have residents paid a premium?

Did you put any premiums paid into a trust account as required?

RV Act s.18(1)
How many residential premises are in the RV?  
How many are occupied?  
How many are vacant and ready for occupation? Are there any that are vacant that are not ready for occupation?  

Is the AB a member of:

  • Property Council of Australia;
  • Aged and Community Services WA?

Is the Village accredited under an accreditation scheme?

Do residents contribute to these costs by paying recurrent charges?







RV Act s.25

RV Regs R.11

Advertising and promotion of retirement village

Does the land containing the RV also contain aged care facilities or services?

If so, do advertising materials comply with the prescribed wording for accessing aged care services/facilities?

RV Code s.10

RV Regs Sch2 Item 1

Pre-contractual disclosure requirements – prospective residents
Have prospective residents been provided with the pre-contractual disclosure information listed at least 10 working days before the residence contract was entered into? What is your standard practice – 10 working days or longer? RV Act s.13(2)
Under the regulations you have to provide prospective residents with a copy of the residence contract and all other contracts. This was a requirement of the Interim Code that has transferred into the regulations. Are you aware of these requirements? RV Act s.14A
Have you always provided a copy of the residence contract with the Form 1? Are you using Form 1 or Form 1A? What is the term of the residence contracts - how much is payable in the form of an upfront fee/bond? RV Act s.14A

If I was to walk into your village today and showed interest in moving in, what documents would be in the pre-contractual disclosure pack that you give me? Do you charge for this information? If so, how much?

Please provide a copy of the pre-contractual disclosure documents (including the residence contract)

RV Act s.13(4A)
Cooling off periods

How are residents informed of the cooling-off periods and their effect?

Have any residents sought to withdraw from the residence contract within the cooling off period?

What were the circumstances? Did you give them a full refund as required by section 75 of the RV Act?



RV Act s.14(1)(a)


RV Act s.75

Time caps on recurrent charges

Residents to whom the cap applies

What is the total number of residents that have been affected by the caps applying:

  • deceased residents?
  • living residents?

Since 1 April 2014 have any residents’ liability ended before the maximum capped period? Circumstances?

How many residents’ liability ended at the end of the capped period or where evidence of death was required later than this?
How many residents had the 6 month cap?
How many residents had the 3 month cap?
What was the longest period a resident who was deceased paid recurrent charges for?
What was the longest period that a resident who was not deceased paid recurrent charges?








RV Act s.23





RV Regs R.9

Deceased residents

Do you require evidence of death before allowing representatives of the deceased resident to permanently vacate the premises?

In every case? In some cases? Circumstances?

RV Act s.23 

Residents that defer liability

Have any residents deferred their recurrent charges liability after 1 April 2014? Did you inform them that interest would be payable on those amounts?

What was the total interest amount paid in relation to deferred recurrent charges? 

RV Act s.24(2)

Administering Bodies' liability after capped period ends

What is the total amount of recurrent charges the AB has had to contribute since 1 April 2014 for recurrent charges for resident’s whose liability has ceased?

Have you reflected this in your budget documents?

RV Act s.23(5) & s.23(6)
Residence contracts

Are you aware of the new Regulations which commenced on 1st October 2015?

Have you arranged for your contracts to be reviewed so that new contracts comply with the regulations for matters or provisions that must or must not be included in residence contracts?

Have you arranged for existing contracts to be varied so that residents have right to vote by special resolution on:

  • Proposal to vary a communal amenity;
  • Proposal to vary or introduce a new communal service
RV Act s.14A(1)
An urgent repairs process? How are you managing that process - e.g. a Deed of Variation/some other process? Details? RV Regs R.7H
Have you identified whether any provisions of your existing residence contracts are void because they contain prohibited provisions. Are you informing residents which if any provisions of the residence contract will be read as being void under s. 14A(4) of the RV Act? RV Act s.14A(4)
Financials - Code requirements

Has the AB established appropriate procedures:

  • for consulting with residents on future planning, budgeting and proposed changes to the administrative or operating financial arrangements for the village; and
  • to give residents access to information about the administrative and operating financial arrangements for the village
RV Code s.16(1)(b) & 16(1)(c )
Did you include in your proposed operating budget an amount for each of the separate items listed in s.17(3)? If not, state why not.  s17(3)
Do you administer more than one village? If so, did you provide separate budget documents for each village? s17(7)

What did you do to comply with requirements regarding the proposed village operating budget in the code to display in central location and make available to each resident on request:

a proposed operating budget for next fin. yr;

information used in preparation of the proposed budget incl:

  • relevant accounts of actual expenditure;
  • information explaining proposed fee changes or changes in the provision or availability of amenities and services.

AB also required to provide each resident written notice of when the budget docs are available.

AB prohibited from finalising budget documents until 10 working days after written notice and the holding of the meeting under cl. 26(1)(b) of the Code.

RV Code s.17

Are residents required to contribute to a reserve fund under the residence contract? What did you do to comply with the requirements regarding the proposed fund budget in the code to display in central location and make available to each resident on request:

- a proposed reserve fund budget for the next financial year

- information used in the preparation of the proposed reserve fund budget explaining proposed fee charges to the provision or availablity of amenities or services. 

RV code s.17(1)(b)
Did you include in your proposed reserve fund budget an amount for each of the separate line items in S17(4)? If not, state why not.  RV Code s.17(4)
Annual Budget Meeting (cl.26(1)(b))
What financial year does the village operate on? When did you hold the annual budget meeting? RV Code s.26(1)(b)

Are you aware that certain charges are now prohibited or that in relation to some charges you must only recover costs incurred?

How have you managed these?

RV Act s.25 
Quarterly operating income and expenditure statements and annual accounts

The AB is required each quarter of the financial year to provide operating income and expenditure statements and to display these in a central location and make available a copy to each resident on request.

Separate statements must be provided for each village that the AB manages.

Please provide a copy of your statements for the last financial year.

RV Code s.18(1),(7) & (8)
Annual Meeting (cl.26(1)(a))

Was  an annual meeting of residents held within 5 months after the end of the financial year of the RV.


RV Code s.26(1)(a)


AB is required to provide a written presentation of the operating financial position of the village as at the end of the previous financial year.

RV Code s.26(1)(a)

Were the accounts independently audited? Y or N

RV Code s.19(9)

If not, did the residents decide by special resolution that the annual financial statements are not required to audited?

RV Code s.19(10)

Please provide a copy of the annual financial statements.

Residents’ meetings
Are you aware of the new provisions inserted in relation to residents meetings? How have you informed residents of these? RV Code s.26(1)(d),26(6) & 26(7)
Residents’ Committee

Is there a resident's committee established by residents under the Code?

Is it an incorporated association? Y or N

RV Code s.24

Does the resident's committee consult with the AB in relation to the day-to-day running of the RV and any issues or proposals raised by the residents?

What is the relationship like and what types of issues are raised?

Does the residents committee hold its own meetings?

Does anyone from the AB attend?"

RV Code s.24
Dispute resolution

Have there been any disputes: (i) between residents within the village; (ii) between a resident and the AB; (iii) between residents and the AB?

Was the dispute process under the Code followed?

If not, had residents agreed to a variation of the Code dispute process?

If so, where is that process written down and provided to residents?

Was the dispute process followed?



If not, had residents agreed to a variation of the Code dispute process?

If so, where is that process written down and provided to residents?

Was the dispute process followed?

What was the outcome?

RV Code s.30

What were the cost of the dispute resolution, particularly were any costs passed onto a resident under s.32(2) of the Code? 

Is the AB aware that it cannot pass on its costs from s.32(2) onto other residents?

RV code s.32(2)
Applications to SAT
Have there been any applications to SAT? Under what provision of the RV Act?  

Are you aware of the new requirements relating to refurbishment works in the RV Code?

Have you adjusted your processes to implement those requirements?

Please provide samples of the written documents. 

RV Code s.22

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