New South Wales Consolidated Acts
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RETIREMENT VILLAGES ACT 1999 - SECT 112
Proposed annual budget
(1) At least 60 days before the commencement of each financial year of a
retirement village, or such other time as may be prescribed by the
regulations, the operator of the village must supply each resident of the
village with a proposed annual budget itemising the way in which the operator
proposes to expend the money to be received by way of recurrent charges from
the residents of the village during the financial year.
: Maximum penalty--100
(2) A person who is the operator of more than one
retirement village may provide a consolidated budget in relation to any 2 or
more of the villages concerned, but, when providing the budget to the
residents and former occupants of a particular village, must include a
separate budget for that village.
(3) The regulations may make provision for
or with respect to--
(a) matters that must be dealt with in a
proposed annual budget, and
(b) matters that must not be financed by way of
recurrent charges, and
(c) the form that the budget is to take.
budget is to be accompanied by a notice--
(a) stating that the operator of the
village is required to obtain the consent of the residents before expending
the money as itemised in the budget, and
(b) stating further that, if the
residents do not give their consent, the operator may expend the money in
accordance with an order of the Tribunal, and
(c) briefly explaining the
reasons for any changes in expenditure from the previous financial year, and
(d) stating that if any change in expenditure arises from a variation in the
services or facilities provided at the village by the operator, consent to
that variation must be by way of a special resolution of the residents, and
(e) containing such other information as may be prescribed.
(5) The notice
may (but need not) further state that the notice operates as the operator's
formal request for the consent of the residents to the expenditure of the
money as itemised in the budget.
(6) Nothing in this section prevents an
operator of a retirement village from cancelling a proposed annual budget and
replacing it with an amended budget at any time.
(7) The residents of a
retirement village may consent to not being supplied with a
proposed annual budget if, in the year in which the consent is given, the
total amount of the recurrent charges that are to be collected for the year
does not exceed $50,000 or such other amount as may be prescribed by the
(8) If the residents of a retirement village consent to not
being supplied with a proposed annual budget under this section, subsections
(1)-(6) and sections 113- 117 do not apply in respect of the
retirement village while the consent remains in force.
(9) Consent given
under subsection (7) remains in force until such time as--
(a) the consent is
revoked by a resolution of the residents of the village, or
(b) the total of
the recurrent charges to be collected for a financial year to which the
consent relates exceeds $50,000 or such other amount as may be prescribed by
(10) The operator is required to notify the residents of the
name of the auditor of the accounts at the annual management meeting if--
consent given under subsection (7) is in force, and
(b) the operator of the
village is required to have the accounts of the village audited under
Subdivision 1 (Auditing of accounts) of Division 6.
(11) The operator of a
retirement village does not commit an offence under subsection (1) if consent
given under subsection (7) is in force at the time that the operator is
required to supply the proposed annual budget.
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