New South Wales Consolidated Acts

RETIREMENT VILLAGES ACT 1999 - SECT 112

112 Proposed annual budget

(1) At least 60 days before the commencement of each financial year of a retirement village, or such other time as may be prescribed by the regulations, the operator of the village must supply each resident of the village with a proposed annual budget itemising the way in which the operator proposes to expend the money to be received by way of recurrent charges from the residents of the village during the financial year.

: Maximum penalty--100 penalty units.

(2) A person who is the operator of more than one retirement village may provide a consolidated budget in relation to any 2 or more of the villages concerned, but, when providing the budget to the residents and former occupants of a particular village, must include a separate budget for that village.

(3) The regulations may make provision for or with respect to--

(a) matters that must be dealt with in a proposed annual budget, and

(b) matters that must not be financed by way of recurrent charges, and

(c) the form that the budget is to take.

(4) The budget is to be accompanied by a notice--

(a) stating that the operator of the village is required to obtain the consent of the residents before expending the money as itemised in the budget, and

(b) stating further that, if the residents do not give their consent, the operator may expend the money in accordance with an order of the Tribunal, and

(c) briefly explaining the reasons for any changes in expenditure from the previous financial year, and

(d) stating that if any change in expenditure arises from a variation in the services or facilities provided at the village by the operator, consent to that variation must be by way of a special resolution of the residents, and

(e) containing such other information as may be prescribed.

(5) The notice may (but need not) further state that the notice operates as the operator's formal request for the consent of the residents to the expenditure of the money as itemised in the budget.

(6) Nothing in this section prevents an operator of a retirement village from cancelling a proposed annual budget and replacing it with an amended budget at any time.

(7) The residents of a retirement village may consent to not being supplied with a proposed annual budget if, in the year in which the consent is given, the total amount of the recurrent charges that are to be collected for the year does not exceed $50,000 or such other amount as may be prescribed by the regulations.

(8) If the residents of a retirement village consent to not being supplied with a proposed annual budget under this section, subsections (1)-(6) and sections 113- 117 do not apply in respect of the retirement village while the consent remains in force.

(9) Consent given under subsection (7) remains in force until such time as--

(a) the consent is revoked by a resolution of the residents of the village, or

(b) the total of the recurrent charges to be collected for a financial year to which the consent relates exceeds $50,000 or such other amount as may be prescribed by the regulations.

(10) The operator is required to notify the residents of the name of the auditor of the accounts at the annual management meeting if--

(a) consent given under subsection (7) is in force, and

(b) the operator of the village is required to have the accounts of the village audited under Subdivision 1 (Auditing of accounts) of Division 6.

(11) The operator of a retirement village does not commit an offence under subsection (1) if consent given under subsection (7) is in force at the time that the operator is required to supply the proposed annual budget.