What Operators Need To Know Before 1 May 2026
On 14 April 2026, the Victorian Government passed the Retirement Villages Regulations 2026 (RV Regulations) and the Retirement Villages (Contractual Arrangements) Amendment Regulations 2026. This finalises Stage 1 of the regulatory framework to support the Retirement Villages Amendment Act 2025 (RV Amendment Act), which we have set out in our previous Victorian Retirement Villages Reforms Alert here.
The Regulations largely reflect the advance copies released by the Government in March 2026.
What has been finalised?
New Retirement Villages Regulations 2026
The new RV Regulations have now been made and commence on 1 May 2026.
For particular attention, Schedule 2 of the RV Regulations include the final new prescribed Standard Form of Residence and Management Contract at Form 4. Operators can rely on the final contract form when preparing for commencement of the amendments to the Retirement Villages Act and RV Regulations.
Operators can continue to use current prescribed forms of contract set out in the Retirement Villages (Contractual Arrangements) Regulations 2017 for a short grace period from 1 May 2026 to 31 August 2026 provided those contracts include additional required provisions and exclude prohibited terms as set out in the RV Amendment Act and the RV Regulations.
Schedule 2 of the RV Regulations also include the final new prescribed form of condition report at Form 2. Operators must provide all non-owner residents with a condition report in this form before the resident commences occupancy of their premises in the village. A copy of the condition report must also be attached to the new prescribed form of Residence and Management Contract.
Aged Care Payment Rules: A Key Clarification
The most significant policy change in the RV Regulations from the Government’s March advanced copies is the reversion predominantly to the current aged care payment position.
A non-owner resident’s entitlement to request funding for an Aged Care Refundable Accommodation Deposit (RAD) is now limited to residents who entered into a residence contract between 1 August 2006 and 29 July 2017.
This aligns with the existing entitlement framework, but with a shorter payment timeframe, meaning residents no longer need to wait six months after exit before requesting such funding.
The timing for payment of RAD funding is as follows:
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Before entry into an aged care facility: payment must be made at least 28 days before the proposed entry date, or as soon as practicable if the request was not made in time; and
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After entry: payment must be made no later than 28 days after the request, or by the date specified by the resident.
All non-owner residents will be able to request aged care funding in the form of daily accommodation payments (DAP’s).
RAD or DAP funding is capped at 85% of the estimated exit entitlement.
New Prohibited Contract Term
The RV Regulations also provide that a residence contract or management contract must not require a resident to pay the operator’s or proprietor’s costs of preparing, executing or enforcing the contract, other than an agreement to lease or a contract of sale.
Updated CAV Forms and What’s Still To Come
The Final Information Statement has now been published by Consumer Affairs Victoria (CAV), click here to download. Although, the approved form of annual contract check that operators are to give residents has not yet been released by CAV.
The CAV forms for requesting aged care and alternative accommodation payments are also still pending.
Operators should continue to monitor the CAV website for these further publications.
From 1 May 2026, operators will be required to provide certain information to CAV every year and update it within 14 days of any change. Operators must re-notify CAV online from 1 May 2026, even if the retirement village has notified CAV of its details under the previous requirements.
Additionally, as noted in our previous Alert, Stage 2 Regulations are still expected later in 2026 and will introduce:
How we can help
With commencement of the changes fast approaching, operators should ensure their contract documentation, disclosure material and processes are aligned with the RV Amendment Act and final Regulations.
If you would like assistance navigating the new regulatory framework or understanding how the changes apply to your village, 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.