Residents and operators meetings in retirement villages

Meetings with village operators

Annual management meetings

The village operator must hold an annual management meeting with the residents within 4 months after the end of each financial year, The financial year is a 12 month period determined by the operator.

Residents must be notified of the meeting at least 14 days in advance and be given a copy of the meeting agenda.

A resident can lodge written questions with the operator at least 7 days before the meeting or ask questions at the meeting.

Items that must be on the agenda:

• a report on any major variations between items in the previous year’s budget expenditure
• any changes to the proposed annual budget that do not need the residents’ consent
• any proposals to undertake capital works that were not in the annual budget
• plans for the village, including any proposed improvements or maintenance
• asset management plan for the village and reports on the residents’ comments on the proposed plan
• management of the village, including any proposed change to management arrangements
• any safety issues
• any proposed changes to services provided to residents, and
• time for residents’ questions.

The operator doesn’t have to answer questions about:

• their personal affairs, or those of their employees or contractors
• a matter that is not related to the operation of the village
• matters relating to individual sales or contracts unless they are already public information.

Annual contract 'check-up' meetings

Residents have the right to meet with their village operator once a year to:

1. discuss their contract
2. get a better understanding of the process involved when leaving the village, including any fees and charges payable.

Family, friends or advisors may attend the meeting with the resident to give them support or help. Residents may also nominate one or more people to represent them at the meeting if they cannot attend.

At the meeting, operators need to provide a verbal and written summary of all costs incurred if the resident were to leave the village. This information is based on the terms and conditions of the residents' contracts. It will help residents understand what is involved when exiting the village and allow any concerns or questions to be addressed.

The operator must provide the following information at the meeting:

• a resident’s rights and obligations in relation to leaving the village
• estimated departure fee (if applicable)
• estimated fees and charges involved with selling the unit
• estimated sale price or estimated ingoing contribution of the next resident, as it applies to the resident’s contract
• estimates of any other fees or charges that apply when leaving the village
• an estimate of any capital gain shared with the operator
• how long recurrent charges may be payable after leaving the village
• estimate of the final monies a resident would receive upon leaving the village, after they have paid all fees and charges.

For registered interest holders who receive more than 50 per cent of the capital gain upon sale of the premises, the operator must also provide the following information:

• the residents' liability to pay recurrent charges for up to 42 days after permanent vacation, under section 152 (e). Learn more about the 42-day cap on recurrent charges.
• a summary of processes and estimates for residents eligible for aged care daily accommodation payments, under section 182AG
• a summary of processes and estimates for those entitled to early access to exit entitlements, under section 182AC.

Operators should also consider giving residents information about engaging an external selling agent and whether this is likely to result in any extra costs.

Any cost and other estimates provided by the operator at the meeting must be reasonable. They must consider factors that may influence the estimate, such as the features and characteristics of the resident’s unit. A reasonable estimate will ultimately depend on the circumstances of each resident.

Significant penalties can apply for operators who provide unreasonable estimates.

Get more information in the village contract information meetings guidelines.

Residents’ meetings

Retirement village residents have the right to arrange and attend meetings to:

• discuss the operation and management of the village
• talk about other topics of interest
• vote on matters where resident consent is required.

If the village has a residents committee, it can arrange a residents’ meeting. If your village does not have a residents committee you can ask the operator to arrange a meeting.

Generally, the only people that can attend meetings are:

• residents under a village contract, or their appointed proxy
• a person with power of attorney or who is officially appointed as guardian or trustee for a resident
• any other people that the residents have consented to attending (for example, tenants, friends or relatives).

Attendance is not compulsory.

If the operator is attending, they must leave when residents are voting.

Residents' consent

There are 2 types of consent given at meetings:

1. General consent

The vote can be by show of hands, proxy or ballot vote.

Some matters that need ‘general consent’ from residents include:

• establishing a residents committee
• allowing people other than residents (eg family / friends) to attend residents' meetings
• changes to the recurrent charges (other than by a fixed formula and the change exceeds the Consumer Price Index change)
• approving the proposed annual budget, or amending one (in some cases consent is not required)
• consenting to not being supplied with a proposed annual budget, or having accounts audited or receiving quarterly accounts (in small villages)
• the appointment of a new auditor (if the audit fees are to be paid by the residents)
• dealing with a surplus in the annual accounts.

Proxy votes

A resident can appoint a proxy to represent them at a meeting if they use a prescribed proxy appointment form (download the form below or talk to your operator to get one). No more than 2 proxies can be held by any one person.

A resident who appoints a proxy can revoke the appointment by giving the person written notice. Otherwise, a proxy automatically expires either:

• after the first meeting at which it is used, or
• after 6 months of being given if not used.

The same person may then be reappointed as proxy.

The village operator cannot be appointed as a proxy.

Access the proxy appointment form

2. Special resolution

A special resolution must be done by written ballot.

Residents must be given at least 21 days written notice of the meeting.

The notice must:

• set out the resolution
• specify that the matter requires a special resolution
• specify that the residents may submit their vote in writing before the meeting (and explain how to do so), and
• be accompanied by a ballot paper initialled by the returning officer.

Learn more about the role of the returning officer, including how they are selected.

Strata and community scheme village meetings

If you’re an owner in a strata or community scheme retirement village, you’ll be invited to the owners corporation or community association meetings.

In strata and community schemes, owners' meetings and village meetings can be held on separate days or one after the other, but not at the same time.

Annual general meeting

The owners corporation must hold an annual general meeting at least once a year. At this meeting, owners vote on:

• the annual administrative and capital works budgets
• election of the executive committee
• appointment of a managing agent or building manager (where these agreements are annual or are expiring)
• changes to by-laws
• any other matters relating to management of the strata or community scheme.

In these meetings, there is one vote for each lot.

Non-residents can vote if they:

• own a lot
• are nominated by the owner, or
• hold a proxy for an owner.

In certain cases a vote's value is based on the lot's unit entitlement.