VIC’s “biggest shake-up” of retirement village laws comes into force

Retirement Living Council executive director Daniel Gannon remained critical of Consumer Affairs Victoria’s performance as the new Act went live on Friday, 1 May.

“The new regulations are live, and unfortunately, today will be the first opportunity operators and residents will get to see many of the new forms they need to comply with because they weren’t available ahead of time,” Daniel said on Friday.

“On the plus side, sales teams can finally get back up and running, after weeks of uncertainty effectively brought activity to a halt, impacting would-be residents. Without necessary transition arrangements, operators were forced to pause and future residents were having to delay their moves to rightsize into their new homes.”

Daniel added the reality is many operators – and their sales teams – are now being forced to restart in an environment that is still not fully defined.

“This has been a frustrating process, and residents have felt it too. The focus now is on getting back up to speed quickly, safely and with clarity,” he added.

The Victorian Government, which faces a State election in November, says the new Act will give retirement villages “their biggest shake up in decades” as a raft of regulatory changes take force.

Whats new?

• A Deferred Management Fee (DMF) will only be calculable on the entry payment paid by the resident and by the length of time a resident lives in the village to the date the resident vacates the village. Currently, DMFsare usually charged on the market value at the time the next resident take occupation of the residence. If a resident transfers to another residence in the same village, the village operator cannot charge another DMF.
• A new dispute resolution service, VicAssist, intended to give retired residents an equal footing to operators, will provide free assistance for resolving issues relating to noise, carparking, fees, repairs and maintenance;
• Providers are banned from charging undisclosed fees and costs and must give prospective residents an information statement that covers the costs of entering, living in and leaving a village;
• From 1 September 2026, a new standard form retirement village contract contained in the Retirement Villages Regulations 2026 must be used;
• There is now a seven-day cooling off period for any contracts signed, with operators required to provide condition reports before residents move in. Those signing up must be offered the same share of any capital gains from the property as they are for any capital losses; and
• Additional fly screens, picture hooks, shelves and security systems are allowed in all homes, so long as they don’t interfere with other residents’ privacy – and operators will not be able to set limits on keeping pets in homes.

Victoria’s sixth Consumer Affairs Minister in six years, Paul Edbrooke, said the changes would not only give retirement village residents more certainty, but also help save them money on dispute resolution.

“For too long, retirement village residents didn’t enjoy the protections they deserved – that changes today,” he said.

“Resolving a dispute with your retirement village shouldn’t cost you thousands of dollars. Now it doesn’t – with VicAssist it’s free.”

Mandatory Code of Practice

A mandatory Retirement Villages Code of Practice is to be developed later this year, in consultation with residents and operators, to ensure consistent standards across all villages.