Retirement Villages Amendment Bill passed in Victoria

The Retirement Villages Amendment Bill has passed in Victoria. The bill was prompted by the 2019 Review of the Retirement Villages Act, which was critical of retirement village contracts. The review found that “overly complex retirement village contracts left residents with unexpected and burdensome financial obligations, unfairly treated, uncertain about their rights, and suffering from ineffective dispute resolution processes”, the Victorian Government said.

The new legislation — informed by stakeholder feedback and more than 500 submissions from residents, their families, industry and consumer advocates — marks the biggest change to the Retirement Villages Act since it was made law in 1986. Standard contracts will be introduced under the reforms.

So that prospective residents are better informed before signing, these standard contracts will provide clear information about entry and exit processes; with the reforms also regulating how exit entitlements are calculated, to help residents to better understand these calculations.

New principles will guide retirement villages, including that operators must respect residents’ rights to remain in a village, treat residents with dignity and respect, and conduct annual financial checks of contracts. There will be a strengthening of dispute resolution processes, with new streamlined procedures set up in all villages, and a new conciliation and complaints scheme established that will be free to use; this will help parties reach an agreement at the earliest opportunity and reduce disruption and stress for residents.

The Victorian Civil and Administrative Tribunal will have expanded powers to hear more serious disputes, such as around significant financial matters or termination of contracts. The role of the Commissioner for Residential Tenancies will also be expanded to further support these reforms — providing independent advice to government on the retirement villages sector.

To be developed this year, the government advised, will be a mandatory Retirement Villages Code of Practice, informed by consultation with the community and retirement village sector. “These reforms will empower residents to make informed decisions and support them to resolve disputes,” Nick Staikos, Victoria’s Minister for Consumer Affairs, said. “We’re also promoting best practice in village management, and ensuring timelier and fairer settlements when exiting a village.”

The new laws will come into effect on 1 May 2026.

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