Retirement Villages (Contractual Arrangements) Amendment (Formula) Regulations 2009

i Retirement Villages (Contractual Arrangements) Amendment (Formula) Regulations 2009 S.R. No. 52/2009 TABLE OF PROVISIONS Regulation Page 1 Objective 1 2 Authorising provision 1 3 Revocation 1 4 Principal Regulations 1 5 Amendment of objectives 2 6 Insertion of definitions 2 7 Insertion of regulation 3 8A Formula for calculation of adjusted maintenance charge 3 8 Amendment of transitional provision 4 ═══════════════ ENDNOTES 6 -- 1 of 7 -- 1 STATUTORY RULES 2009 S.R. No. 52/2009 Retirement Villages Act 1986 Retirement Villages (Contractual Arrangements) Amendment (Formula) Regulations 2009 The Governor in Council makes the following Regulations: Dated: 19 May 2009 Responsible Minister: TONY ROBINSON Minister for Consumer Affairs RYAN HEATH Clerk of the Executive Council 1 Objective The objective of these Regulations is to amend the Retirement Villages (Contractual Arrangements) Regulations 2006 to provide for the determination and indexing of adjusted maintenance charges. 2 Authorising provision These Regulations are made under section 43 of the Retirement Villages Act 1986. 3 Revocation The Retirement Villages Regulations 1998 1 are revoked. 4 Principal Regulations In these Regulations the Retirement Villages (Contractual Arrangements) Regulations 2006 2 are called the Principal Regulations. -- 2 of 7 -- S.R. No. 52/2009 Retirement Villages (Contractual Arrangements) Amendment (Formula) Regulations 2009 2 5 Amendment of objectives (1) In regulation 1(c) of the Principal Regulations, for "cases." substitute "cases; and". (2) After regulation 1(c) of the Principal Regulations insert— "(d) prescribe a formula for the determination and indexing of maintenance charges for the purposes of section 38(1) of the Act.". 6 Insertion of definitions In regulation 4 of the Principal Regulations insert the following definitions— "consumer price index number means the all groups consumer price index number for Melbourne fixed by the Australian Statistician; existing retirement village means a retirement village established before the commencement of the Retirement Villages (Contractual Arrangements) Amendment (Formula) Regulations 2009; new retirement village means a retirement village established on or after the commencement of the Retirement Villages (Contractual Arrangements) Amendment (Formula) Regulations 2009; quarter means a period of three months in any year that ends on 31 March, 30 June, 30 September or 31 December; relevant financial year means in respect of a retirement village, a period that consists of 12 consecutive months, that commences on the date fixed by the manager of the retirement village and ends on the date fixed by the manager of the retirement village;". r. 5 -- 3 of 7 -- S.R. No. 52/2009 Retirement Villages (Contractual Arrangements) Amendment (Formula) Regulations 2009 3 7 Insertion of regulation After regulation 8 of the Principal Regulations insert— '8A Formula for calculation of adjusted maintenance charge (1) The adjusted maintenance charge for a relevant financial year for an existing retirement village or a new retirement village that has been in operation for at least one relevant financial year must be determined in accordance with subregulation (2). (2) For the purposes of subregulation (1), the adjusted maintenance charge must be determined for each relevant financial year for the retirement village in accordance with the formula— C B × A where— A is— (i) subject to subparagraph (ii), the adjusted maintenance charge for the previous relevant financial year for the village; or (ii) in the case of a new retirement village that has been in operation for only one relevant financial year, the maintenance charge for that relevant financial year for the village; B is the sum of the consumer price index numbers for 4 consecutive quarters, the last of which immediately precedes the commencement of the relevant financial year for the village; r. 7 -- 4 of 7 -- S.R. No. 52/2009 Retirement Villages (Contractual Arrangements) Amendment (Formula) Regulations 2009 4 C is the sum of the consumer price index numbers for 4 consecutive quarters, the last of which immediately precedes the commencement of the previous relevant financial year for the village. (3) The amount obtained by the application of the formula set out in subregulation (2) may be rounded to the nearest multiple of 10 cents. Example calculation For a retirement village with a relevant financial year of 1 July–30 June, the adjusted maintenance charge payable for the period 1 July 2009–30 June 2010 is calculated as follows— "A" is the amount of adjusted maintenance charge payable from 1 July 2008–30 June 2009; "B" is the sum of the consumer price index numbers for June 2008, September 2008, December 2008 and March 2009; "C" is the sum of the consumer price index numbers for June 2007, September 2007, December 2007 and March 2008.'. 8 Amendment of transitional provision (1) In regulation 9(1) of the Principal Regulations, for "These Regulations do" substitute "These Regulations, other than regulation 8A, do". (2) After regulation 9(2) of the Principal Regulations, insert— '(3) Despite anything to the contrary in these Regulations, if at the commencement of the Retirement Villages (Contractual Arrangements) Amendment (Formula) Regulations 2009, the last relevant financial year for an existing retirement village is yet to be completed, the adjusted maintenance charge payable for the remaining period of that financial year is to be calculated in r. 8 -- 5 of 7 -- S.R. No. 52/2009 Retirement Villages (Contractual Arrangements) Amendment (Formula) Regulations 2009 5 accordance with the law as in force prior to the commencement of the Retirement Villages (Contractual Arrangements) Amendment (Formula) Regulations 2009. (4) Despite anything to the contrary in these Regulations, if an existing retirement village is determining an adjusted maintenance charge for the first time after the commencement of the Retirement Villages (Contractual Arrangements) Amendment (Formula) Regulations 2009 in accordance with regulation 8A, in the formula set out in regulation 8A(2), "A" is deemed to be the adjusted maintenance charge that would have been payable for the last relevant financial year for the village commencing in the 12 months before the commencement of the Retirement Villages (Contractual Arrangements) Amendment (Formula) Regulations 2009, under the law as in force at the commencement of the last relevant financial year. Notes 1 Where an existing retirement village is part way through its financial year at the commencement of the Retirement Villages (Contractual Arrangements) Amendment (Formula) Regulations 2009, all remaining adjusted maintenance charge payments for that year are to be in accordance with the formula prescribed under the Retirement Villages Regulations 1998. 2 For an existing retirement village, "A" will be equal to the last adjusted maintenance charge determined in accordance with the Retirement Villages Regulations 1998 for the first adjustment following the commencement of the Retirement Villages (Contractual Arrangements) Amendment (Formula) Regulations 2009. For all subsequent years, "A" will be equal to the adjusted maintenance charge determined in the previous relevant financial year.'. ═══════════════ r. 8 -- 6 of 7 -- S.R. No. 52/2009 Retirement Villages (Contractual Arrangements) Amendment (Formula) Regulations 2009 6 ENDNOTES 1 Reg. 3: S.R. No. 55/1998 as amended by S.R. No. 93/2006 and as extended by S.R. No. 34/2008. 2 Reg. 4: S.R. No. 99/2006. Endnotes -- 7 of 7 --