If a retirement village doesn't comply with the Act

Options for residents and the actions the Registrar or Court can take

There are several options available to residents when a retirement village doesn't comply with the Retirement Villages Act 2003 (the Act). In some circumstances they may be able to end an occupation rights agreement. They can also lodge a formal complaint if their rights have been breached.

In some situations the Registrar may be able to suspend a retirement village's registration or the Court may impose fines.

Ending an occupation right agreement

A resident may be able to end an occupation right agreement if the retirement village operator didn't comply with certain important requirements before the resident signed the agreement.

This means that the agreement is at an end and the operator must refund all capital sums paid (and other payments and costs) to the resident.

Resolving complaints and disputes

The Act provides a two-tiered complaints and disputes resolution regime to resolve resident complaints.  

Tier 1 — Formal complaint

  1. Residents can make a formal complaint to the operator under the village’s formal complaint facility.
  2. If the complaint remains unresolved after 20 working days, the operator must refer it to the statutory supervisor to recommend a way forward. 
  3. And, if the complaint is not resolved within 20 working days of being referred to the statutory supervisor, the operator must give residents the option of mediation.

Tier 2 - Dispute resolution

If a formal complaint remains unresolved, residents can issue a dispute notice to the operator requiring their formal complaint to be resolved by a disputes panel. They can issue this notice after 20 working days and within 6 months of making the formal complaint.

Complaining about a breach of rights

Residents can also make complaints about breaches of their rights to the Statutory Supervisor (if there is one), the Registrar of Retirement Villages (“the Registrar”), the Retirement Commissioner.

How the Registrar handles complaints received

We will review all complaints we receive to assess whether it is appropriate for the Registrar to take any action.

In most cases, complaints will be best dealt with through the complaints and disputes resolution regime provided for under the Act. However, the Registrar may consider suspending the registration of the retirement village if:

  • the operator doesn't comply with the Act, or
  • if registered documents are likely to be misleading or deceptive.

More information

Please refer to the Retirement Commissioner’s website for more information about the complaints and disputes process under the Act.

Suspending a retirement village’s registration

We can suspend a retirement village's registration if the Registrar considers that:

  • the retirement village operator is failing to comply with the Act, or
  • a registered document is likely to be misleading or deceptive. 

In these situations the village won't be able to advertise or take in new residents.

We will generally try to work with the Operator and Statutory Supervisor to achieve compliance before suspending a retirement village’s registration.

We will also consider whether suspension is necessary to protect residents’ interests and whether it will negatively impact residents’ interests.

Fees and penalties

Where the Act is not complied with, fines can be issued by the Court for up to:

  • $30,000 for individuals, and
  • $100,000 for companies and other bodies.