BUDGET – Increase in Fees

GENERAL SERVICES FEES can be increased from time to time as costs increase. However, increases in some of the things for which we have to pay are determined by others, and are not entirely within the discretion of the Scheme Operator. Such increases are listed in Section 107 of the Retirement Villages Act 1999 (QLD) [RVA]

  • Salaries and wages determined under State or Federal Acts
  • Insurance premiums
  • Maintenance reserve fund contributions
  • Government rates or taxes

According to Section 107 of the RVA, we can be required to accept increases in those items.

Section 106 of the RVA provides for increases in other items which CANNOT be imposed upon residents. The increases must be within the movement of the Consumer Price Index (CPI). A Scheme Operator must NOT increase the total of general services charges as defined in the RV Act Section 106(2) ABOVE the percentage increase in the CPI unless the increase is APPROVED by the village residents by SPECIAL RESOLUTION at a properly convened special meeting (e.g. AGM).

This approval requires a seventy five per cent majority vote. (See “Special Resolution” in the dictionary at the end of the RVA. If you don’t like what is proposed simply VOTE AGAINST IT; if residents collectively reject it, it cannot be imposed.

If the Scheme Operator or management tries nevertheless to impose increases on you contrary to the RVA, they run the risk of suffering a substantial financial penalty. Now you are aware of this fact it’s important that your management team know that you know what is not allowed under the RVA with respect to Section 106.

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