The Retirement Villages Amendment Act 2025 (RV Amendment Act), which amends the Retirement Villages Act 1986, will commence no later than 1 May 2026. You can read a summary of some of the more significant changes introduced by the RV Amendment Act in our previous Victorian Retirement Villages Reforms Alert here.
The Victorian Government announced that the new Regulations (to support the RV Amendment Act) would be introduced in two stages as follows:
Stage 1 (commencing 1 May 2026)
- Retirement Villages (Contractual Arrangements) Amendment Regulations 2026 will amend the Retirement Villages (Contractual Arrangements) Regulations 2017 (RV Contractual Arrangements Regs). These changes are intended to preserve existing forms of contracts and matters pertaining to contracts entered into prior to 1 May 2026.
- New Retirement Villages Regulations 2026 (RV Regs) will revoke two earlier sets of Regulations and prescribe new forms (including new standard forms of contracts) and details of prescribed matters required by the RV Amendment Act.
Stage 2 (commencing 1 September 2026)
- Regulations that will further amend the new RV Regs 2026 and will include a new Code of Practice, details for new annual operator payments and exemption applications, with a draft to be released around June 2026 for public consultation.
Advance copies of the RV (Contractual Arrangements) Amendment Regulations 2026, RV Regs, new prescribed standard form contract and draft CAV form of new Information Statement have been released (and are available on the CAV website). Subject to minor technical amendments, the proposed Regulations are expected to be passed in April 2026 for commencement on 1 May 2026.
Some of the key details in the proposed Retirement Villages Regulations include:
New prescribed forms of Contract
The Regulations prescribe a new form of residence contract and management contract. Both forms contain mandatory content and must also include extensive prescribed terms. The contract must not include prohibited terms.
Grace period for Existing Contract Forms
There is a short grace period from 1 May 2026 to 31 August 2026, during which operators may still use the current prescribed forms of contract set out in the Retirement Villages (Contractual Arrangements Regulations 2017 provided those contracts include additional required provisions and exclude prohibited terms as set out in the RV Amendment Act and the new Regulations. Operators may instead choose to adopt the new prescribed form of contract from 1 May 2026.
New CAV Information Statement (replacing the current factsheet and disclosure statement)
Operators will be required to provide a new form of Information Statement but note at the date of this alert the form has not yet been finalised. CAV is seeking feedback on the draft Information Statement by 20 March 2026. The final Information Statement is to be made available on the CAV website when the Regulations are passed.
Like the current factsheet and disclosure statement, the new Information Statement will require various matters to be disclosed e.g. village particulars, services and facilities, entry fees, ongoing fees and charges, exit fees, details of the exit entitlement, more detailed insurance information including nature of risks insured against, premiums and excesses, and any exclusions amongst other matters. An addendum will also need to be completed detailing unit specific financial information.
Operators will also be required to provide the financial report presented at the last annual meeting as part of the “residence documents” required to be disclosed to a prospective resident.
FINANCIAL MATTERS
Deferred management fees (DMF)
- Must be calculated on the ingoing contribution and on a daily basis.
- If a resident relocates to another premises in the retirement village, only one DMF is payable and must be calculated by reference to the aggregated length of time that the resident has resided in the village.
Aged Care and Alternative accommodation payments (non-owner residents)
- Non-owner residents who entered into contracts before 30 July 2017 will be entitled to request a refundable accommodation deposit or daily accommodation payments (DAP’s).
- For contracts from 30 July 2017, non-owner residents continue to be able to request DAP funding.
- Non-owner residents can also request operators to advance alternative accommodation payments if the resident moves to a rooming house, caravan park, residential park, Supported Residential Services (for which the vacating resident is liable to pay recurring fees for accommodation or services in accordance with the Social Services Regulation Act 2021) and hospital/rehab services (for which the vacating resident is liable to pay recurring accommodation or service fees).
- The maximum threshold for aged care or alternative accommodation funding is capped at 85% of the resident’s estimated exit entitlement.
VILLAGE OPERATIONS AND CAPITAL MAINTENANCE
Accounts
Deficits are not required to be made good by the operator in some circumstances, such as increases in rates, employment costs, insurance premiums, certain utility costs that could not be reasonably foreseen or essential operating costs as a result of an extraordinary event.
Modifications (non-owner residents)
Modifications that can be made without an operator's approval such as installing fly screens, window furnishings, picture hooks and security systems which do not unreasonably interfere with the privacy of other residents, and alterations permitted under the Equal Opportunity Act 2010.
Capital maintenance
- The RV Regulations prescribe detailed rules around capital maintenance, including prescribed items of capital such as walls, floors, ceilings and roofs, boilers, fences and gates, garage doors, air-conditioning systems, roads and pathways within the village, and solar panels and electric vehicle chargers.
- Ingoings and outgoings of the capital maintenance fund, for example the operator must pay into the capital maintenance fund such portion of any payment (recurrent or lump sum) made by a resident upon entering the village, while living in the village, or upon exiting the village, that the operator considers may be required for capital maintenance.
- Information to be included in the capital maintenance plan (required for leasehold villages by 1 May) includes any information the operator relied on in preparing the capital maintenance plan such as, survey plans and reports.
Termination considerations (non-owner residents)
- Termination within any contractual settling-in period – fair market rent is to be calculated by taking the average of the rent charged for three comparable premises.
- Some additional factors must be taken into account when considering terminating a resident’s contract such as, the financial impact on the resident, the impact on other residents, whether the resident can cease the breach and whether mitigating steps have been taken as well as the resident’s ability to advocate for themselves.
Disputes
- Prescribes matters relating to internal and external dispute resolution processes including general information to be recorded about village disputes, notices and records of resolution and non-resolution of disputes.
- Information relating to content of no resolution certificate and recorded agreements.
Other new prescribed forms include
- Premises condition report for when non-owner residents enter and leave.
- Notice of breach of contract (non-owner residents).
- Application to VCAT for approval to terminate a contract for health and safety reasons.
Contract checks
- An approved form of contract check is to be made available on the CAV website once the RV Regs are made. A draft of this form has not yet been released.
- In addition to other matters detailed in the RV Amendment Act, the contract check must include prescribed insurance information.
What operators should do now to prepare
With commencement scheduled for 1 May 2026 operators should:
- Review the proposed RV Regs and form requirements.
- Provide feedback on the draft Information Statement to cavengagement@dgs.vic.gov.au by 20 March 2026.
- Commence collating information required for the Information Statement.
- Review your current financial models offered to residents.
- Arrange for a capital maintenance plan to be prepared for items of capital in the village.
- Consider how capital maintenance/repair and replacement will be funded.
How we can help
The RV Act and new RV Regulations introduce significant changes to contract forms, financial matters, disclosure requirements and dispute resolution procedures.
If you would like assistance to prepare for the legislative overhaul or guidance with actioning any of the above requirements, please contact Donna Rayner, Kathryn Elleman and Jessica Kinnear from our Retirement Living team.
If you would like to keep up to date with our retirement living Alerts, News and Insights you can subscribe to our Retirement Living mailing list here.
This summary is intended as general information only and does not constitute legal advice. You should seek specific legal advice in relation to your individual circumstances.