The WA retirement village law reforms will commence on 1 September 2026. While some of the reforms take effect from that date, the provisions will be phased in over five stages to allow retirement village operators time to comply.
Most provisions of the Retirement Villages Amendment Act 2024 are expected to commence on 1 September 2026, but operators will not have to comply with some parts until later dates as set out below. The Retirement Villages Regulations 2026 (New RV Regulations), which will revoke and replace the Retirement Villages Regulations 1992, will also commence on that date. Together, these reforms amend the Retirement Villages Act 1992 (RV Act) and introduce a new regulatory framework for the sector.
There are various forms referred to in the New RV Regulations that are not yet available and will be published on Consumer Protection’s website in due course. There will be:
12 month exit entitlement payments / buy backs: The operator must pay the exit entitlement to holders of a lease-for-life within 12 months of the outgoing resident permanently vacating the premises or earlier, if the premises is occupied or leased to an incoming resident sooner. Also, in a strata titled village, the operator must buy back the strata lot if the strata lot has not been re-sold within 12 months after the outgoing resident permanently vacates. These requirements apply unless the outgoing resident and operator otherwise agree or the Commissioner of Consumer Protection grants an extension to, or exemption for, the 12 month deadline upon receipt of an application from the operator.
Example form: Exit entitlement statement (Section 29(3)(b) RV Act)
Approved form: Application to Extend Exit Entitlement or Buyback (Sections 29, 38 RV Act)
Approved form: Application for Exemption on Paying Exit Entitlement or Buyback (Section 39 RV Act)
Aged Care Payments: To assist residents with moving from a retirement village into aged care, a portion of the unpaid exit entitlement can be used to pay a resident’s Aged Care Payments in certain circumstances. A resident can ask the operator to pay certain Aged Care daily fees if the resident has permanently vacated, moved into aged care and elected to pay Aged Care Payments through daily fees. When the operator pays the outgoing resident the exit entitlement, the amounts already paid as Aged Care Payments will be deducted from the amount an outgoing resident receives.
Approved form: Request to pay daily accommodation Aged Care Payments (Section 31 RV Act)
Rules of conduct: The operator and its employees must comply with the specified requirements regarding professionalism, training, competencies, performance and behaviour. The residents must comply with specified behavioural requirements towards other residents, the operator and its employees. (Section 21A(2) RV Act)
Financial arrangements and budget obligations: The operator must follow the prescribed processes, which are similar to that presently provided for in the Fair Trading (Retirement Villages Code) Regulations 2022, noting that Code is going to be repealed. (Section 21B RV Act)
Terminating a retirement village scheme: The operator must create a termination plan and have it approved by the State Administrative Tribunal before closing down a retirement village while any resident still occupies premises in the retirement village.
Approved form: Termination Plan (Section 22 RV Act)
Modification to a retirement village: Where the operator seeks to change buildings, land, amenities or services at a retirement village a modification plan must be prepared and given to residents. The operator must seek approval of the modification plan through a special resolution of residents, failing which the operator can apply for approval from the State Administrative Tribunal.
Approved form: Modification plan (Section 41N RV Act)
Reinstatement and renovation:
A resident can be required to pay to reinstate the premises if:
The resident can be required to pay to renovate the premises only if:
Approved form: Renovation plan (Section 26 RV Act)
Property Condition Report (PCR) on entry and exit: Within 7 days after a resident enters into occupation of premises, an operator must inspect the premises and record the condition of the premises in a PCR. As soon as practicable, and in any event within 14 days after the day on which a resident permanently vacates the premises, the operator must complete an inspection and a second PCR.
Example form: PCR (Section 14D RV Act)
New disclosure statements: An operator must provide to prospective residents the Community Arrangement Statement, setting out general information about the retirement village accommodation, amenities, and services and the Prospective Resident Information Statement, setting out a summary of the costs associated with entering, living in and leaving a retirement village.
Approved form: Community Arrangement Statement (Section 14B RV Act)
Approved form: Prospective Resident Information Statement (Section 14B RV Act)
Residence contract prescribed requirements: It is expected that the New RV Regulations will be effective from 1 July 2027, that prescribe new mandatory content that must be included in a residence contract, as well as provisions that must not be included. (Section 14A RV Act)
Register of retirement villages: Operators will be required to provide Consumer Protection with basic information about each retirement village for inclusion on a public register and to update that information from time to time. (Section 78 RV Act)
Capital maintenance and capital replacement plan: An operator must prepare and keep a plan for capital maintenance and capital replacement if they have capital items in the retirement village requiring maintenance or replacement works. An operator must keep an up to date plan for the required capital maintenance and capital replacement works for the retirement village covering at least the next 5 financial years but not more than 15 years.
Capital items include any buildings or structure in a retirement village, any plant, machinery or equipment used in the administration of the retirement village, and any part of the infrastructure of the retirement village. Anything owned by a resident or, items in residential premises provided for the exclusive use of a resident and ‘common property’ as defined under the Strata Titles Act 1985 and the Community Titles Act 2018 are not capital items.
Capital maintenance fund: Operators will be required to maintain a capital maintenance fund to cover the costs of maintenance outlined in the capital maintenance and capital replacement plan. Operators will need to decide the source of the funds to be placed into the capital maintenance fund.
Operators may also establish, but are not required to, a capital replacement fund.
Example form: Capital maintenance and capital replacement plan (Section 41B RV Act)
With the commencement implementation schedule now outlined operators should:
The amendments to RV Act and New RV Regulations introduce significant changes for retirement village operators.
If you would like assistance in preparing for these reforms or guidance on implementing the new requirements, please contact us.
For further advice on this topic, please contact Bianca McGoldrick, Partner, Matt Reid, Partner, and Jade Olynyk, Senior Associate, Real Estate at Jackson McDonald.