Law firm flags key change to VIC’s Retirement Villages Act

Law firm Russell Kennedy says the most significant policy change in the Retirement Village Regulations relates to the treatment of aged care payments for residents leaving.

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,” said Russell Kennedy’s Donna Rayner, Kathryn Elleman, Jessica Kinnear and Portia Pascuzzi.

“The timing for payment of RAD funding is as follows:

• 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
• 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.”

Consumer Affairs Victoria has also published the Regulations and Final Information Statement.

“Although, the approved form of annual contract check that operators are to give residents has not yet been released by Consumer Affairs Victoria,” said the law firm.

“Consumer Affairs Victoria’s forms for requesting aged care and alternative accommodation payments are also still pending.”

Stage 2 Regulations are still expected later in 2026 and will introduce:

• a new Code of Practice; and
• further detail on operator payments and exemptions.