Australian Capital Territory Numbered Acts

RETIREMENT VILLAGES AMENDMENT ACT 2016 (NO. 30 OF 2016) - SECT 49

insert

    (4)     If the departure fee payable by a resident under the village contract is worked out in relation to the incoming resident's ingoing contribution, for subsection (3) (b)—

        (a)     the operator's share is taken to be the percentage of the capital gain equal to the percentage of the incoming resident's ingoing contribution in relation to which the departure fee is worked out; and

        (b)     the former occupant's share is taken to be the remaining percentage.

    (5)     Subsection (4) applies despite any provision in the village contract about how the former occupant and the operator of the retirement village are to share in the capital gain.

Example

Lewis has moved from the retirement village operated by Henry into an aged care facility. Lewis's village contract states that he is entitled to 100% of the capital gain. However, under his contract, Lewis is liable to pay a departure fee worked out as 25% of an incoming resident's ingoing contribution. Therefore, Henry's share of the capital gain is taken to be 25% and he is liable to pay 25% of the recurrent charges for general services, and Lewis is liable to pay the remaining 75%.

Note     An example is part of the Act, is not exhaustive and may extend, but does not limit, the meaning of the provision in which it appears (see Legislation Act

, s 126 and s 132).