Law Compliance Report - current edition - Report - Page 12
August 2024 Edition
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the Tribunal has ordered that the increase take
effect under new section 14B of the Act.
Operators should note that any increase in a
recurrent charge by the operator that does not
comply with new section 14A of the Act is void and
is not payable by the residents unless the Tribunal
has ordered that the increase take effect under new
section 14B.
Imposition of levies
New section 14C of the Act sets out new
obligations on operators relating to the imposition
of a levy on the residents of a retirement village for
a purpose that is not authorised by the village rules
or the residence contract. Under new section 14C(2)
of the Act, a levy may not be imposed on the
residents of a retirement village unless:
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the residents and tenants have authorised the
imposition of the levy by a special resolution; or
•
the levy has not been imposed on the residents of
the retirement village in the immediately
preceding 12 months and the expenditure which
the levy is intended to cover is payable either
because of the requirements of an Act or the order
of a court or tribunal.
Operators should also note that, if the imposition of
a levy does not comply with this new section, it is
void and is not payable by the residents.
Failure to comply with the above obligations set out
in new sections 14A and 14C of the Act could result
in a fine of 200 penalty units (currently, $39,000).
Minutes of meetings of residents and tenants
The newly amended section 14(10) of the Act now
requires that an operator must ensure that accurate
minutes are kept of any meeting of residents and
tenants convened by the operator. Without limiting
what may be recorded in the minutes of a meeting
of residents and tenants, under the amended
section 14(11) of the Act, the operator must ensure
that any minutes of a meeting record the following
information:
•
any questions asked by residents and tenants at
the meeting; and
•
any answers given by the operator, or a
representative of the operator, to questions asked
at the meeting; and
•
such other matters as may be prescribed.
Additionally, new section 14(11A) of the Act states
that the operator must:
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make any minutes kept under section 14(10) of
the Act available for inspection by residents of the
retirement village within 30 days after the day on
which the meeting, to which the minutes relate, is
held; and
•
arrange for the minutes to be adopted at the
following meeting of residents and tenants
convened by the operator.
Conclusion
Organisations should update their internal
processes and systems to include the new
obligations set out above. All relevant staff should
also be made aware of these changes to ensure
compliance, particularly those responsible for
determining recurrent charges or imposing levies on
residents as well as those responsible for convening
meetings of residents and tenants. The changes
outlined here are set out in more detail in the TAS Retirement Villages topic.
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