VIC Code of Practice could cost operators $19.5M over 10 years

The State Government has released the second part of Victoria’s new retirement village laws for public comment.

Consumer Affairs Victoria is seeking feedback on the proposed Regulations which include:

• a mandatory Code of Practice for retirement village operators and proprietors;
• a form for notice of meeting for a special resolution about increases to maintenance charges, and
• actions to be taken by the operator to ensure the retirement village is generally safe.

A report Retirement Villages Amendment Regulations 2026 – Regulatory Impact Statement (RIS) by expert services firm Sapere’s Sally Carrick, David Graham and Connor Gavin states the Retirement Living Council's Code of Conduct is subscribed to by around 34% of villages.

“Rights and obligations continue to be applied inconsistently, with outcomes largely dependent on individual operator practices,” the report states.

“This has resulted in variability in operator conduct and consumer outcomes across retirement villages, particularly when it comes to standards of conduct, marketing material, renovation, refurbishment, reinstatement, capital maintenance, dispute resolution, managing and resolving conflicts of interest, emergency planning, presentation of financial statements, and privacy and confidentiality.”

The report lists three options for a mandatory Code of Practice and states the preferred option is Number 3 – the most severe regulatory change.

“There will be significant costs to industry under the preferred option, and a total indicative cost of nearly $19.5 million over 10 years has been estimated for those items quantified, equivalent to just under $80,000 per operator/proprietor,” it states.

What is contained in Option 3

The full list of requirements are:

• Marketing of retirement villages on exit;
• Dispute resolution;
• Conflicts of interest (offence provision);
• Emergency planning;
• Annual financial statement;
• Privacy and confidentiality (offence provision);
• Prevention of elder abuse (offence provision);
• Renovation, refurbishment and reinstatement (offence provision);
• Maintenance and changes to service (offence provision); and
• Staff training, competencies and professional development (offence provision).

Key cost drivers are requirements relating to the elder abuse strategy, capital maintenance procedures, refurbishment, renovation and reinstatement requirements, and training and ongoing supervision, according to Sapere.

All respondents to Consumer Affairs Victoria’s survey are directed to Option 3.