Victoria’s Retirement Village Laws Have Changed: What You Need to Know

Introduction

Victoria has undergone the most significant reform to its retirement village laws in decades. The Retirement Villages Amendment Act 2025 (Vic) received Royal Assent on 3 June 2025 and amended the longstanding Retirement Villages Act 1986 (Vic). The majority of the new obligations took effect from 1 May 2026 with further changes following on 1 September 2026.

Whether you are a retirement village operator, a current resident, or someone considering moving into a retirement village, these reforms will affect you. Below, we outline the key changes and what they mean in practice.

Background

The reforms stem from a 2019 review of the Retirement Villages Act 1986 (Vic), which found that overly complex and varied retirement village contracts made it difficult for people to compare villages and understand their obligations and costs.

Key Changes

The new Act introduced a number of significant changes:

1.      New Information Statement for Prospective Residents

Operators must provide prospective residents with a new prescribed Information Statement before they enter into a contract. This replaces the previous factsheet and disclosure statement. The Information Statement must also be published on the operator’s website. The aim is to give prospective residents and their families clearer, more comparable information before committing to a village.

2.      Standardised Contracts with New Rights and Obligations

All new retirement village contacts entered into from 1 May 2026 must incorporate new prescribed rights and obligations.

Key contract protections include:

• A 7-business day cooling off period allowing prospective residents to withdraw before a contract becomes binding
• A prohibition of undisclosed fees – contracts cannot require payment of any fee not disclosed in the Information Statement
• Fairer sharing of capital gains and losses – contracts must not allocate residents a higher share of capital loss than capital gain

3.      Condition Reports for Non-Owner Residents

Operators must provide non-owner residents with a condition report (using a prescribed form)

4.      Capital Maintenance  

One of the most significant changes is the clear legislative line drawn on capital maintenance. Operators are responsible for funding the maintenance and replacement of capital items (being any building, structure, plant or equipment owned by the operator). Residents cannot be charged special levies or unexpected costs for capital replacements such as roofs or lifts.

Operators must also prepare and maintain a capital maintenance plan, which any resident may request. Operators have 21 days to provide an updated copy upon request.

5.      Annual Contract Check

Operators must provide each resident with a free annual contract check, summarising:

a. Their obligations upon vacating;

b. Any payments due;

c. A reasonable estimated sale price for theirpremises; and

d. Their exit entitlement.

6.      Exit entitlements

Exit entitlements must be paid to departing residents no later than 12 months after they permanently vacate the village. The reforms also place clearer limits on ongoing charges after a resident exits – residents cannot be charged for services they no longer receive. There is also a clear process for appointing an independent valuer where the value of the premises or residence right cannot be agreed upon.

7.      Emergency Management Plans

Operators must develop emergency management plans and conduct annual evacuation exercises to better protect residents.

8.      Strengthened Dispute Resolution

A new structured approach to village disputes was introduced, including formal notice requirements and a free conciliation and complaints scheme to help parties reach agreement early. More serious disputes – such as contract termination or significant financial matters – can be escalated to VCAT, now has expanded powers to hear these matters.

9.      Stronger Regulatory Oversight

Consumer Affairs Victoria gained enhanced powers to monitor compliance, including the ability to require operators to provide information. All operators were required to re-notify CAV of their village details via the myCAV portal from 1 May 2026, even if already registered.

10. New Standard Form Contract

From 1 September 2026, the new standard form retirement village contract is now mandatory for all new contracts. This will make it easier for prospective residents to compare villages and understand their rights and obligations.

Upcoming: Retirement Villages Code of Practice

The Victorian Government is also developing a mandatory Retirement Villages Code of Practice, which will set minimum standards for governance, financial management, and resident engagement. A draft is expected to be released for public consultation later in 2026.

Existing Exemptions

Operators who currently hold exemptions from the Retirement Villages Act 1986 (Vic) should be aware that all existing exemptions will expire on 1 May 2027. Operators wishing to continue being exempt from any requirements under the Act must apply for a new exemption via myCAV before that date.

What you should do now?

If you are an operator, now is the time to review your contracts, disclosure documents, maintenance arrangements and internal processes to ensure compliance. You should also prepare your capital maintenance plan, update your website with the new Information Statement and village disputes procedure, and re-notify CAV via myCAV.

How Sharrock Pitman Legal can help?

If you are a resident or prospective resident, these reforms significantly strengthen your rights, particularly around contract transparency, exit entitlements and capital maintenance costs. If you are considering entering a retirement village contract, or have concerns about your existing arrangements, we encourage you to reach out to us. Contact us on 1300 205 506 or email us at sp@sharrockpitman.com.au.

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The information in this article is general in nature only and should not be relied upon as legal advice. Any legal matter should be discussed specifically with one of our lawyers.

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