The Retirement Villages (Miscellaneous) Amendment Act 2024 (SA) (Act) introduces important changes to the content of disclosure statements that retirement village operators are required to provide to prospective residents. Non-compliance with the new requirements can result in penalties of up to $35,000.
What changes need to be made to Disclosure Statements?
Retirement village operators must ensure that disclosure statements provided to prospective residents on and from 2 February 2026 are in the revised form to be set out in the amended Retirement Villages Regulations 2017 (SA). The amendments to the Act and the required disclosure statement form will require the following information to be included in a disclosure statement:
for exit entitlements and exit fees:
the estimated exit entitlements and exit fees, which must be reasonable in the circumstances, payable under the residence contract in the event that the resident’s right to occupation is terminated 2 years, 5 years and 10 years after being entered into;
the manner of calculation of those estimated exit entitlements and exit fees and any inbuilt assumptions used in the calculations, all of which must be reasonable in the circumstances;
a statement that the estimated exit entitlements and exit fees in the disclosure statement are estimates only and are subject to change depending on circumstances prevailing at the relevant time in the future, such as the amount of a new ingoing contribution;
any limitation or requirement that applies, or is known to apply in the future, in relation to a resident’s choice of provider for utilities, services and facilities that are provided or available at the retirement village (eg electricity, telephone or internet services);
any special levy in place and payable by residents, including the purpose of the special levy, the amount and frequency of payments and the proposed date of final payment;
any major capital item expenditure project, having regard to the size, nature and gross revenue of the retirement village, in place or planned for the next 2 years, including the cost of the project and how it will be funded;
as up to date as reasonably practicable but in any event accurate as at 1 July of that financial year, the number of persons residing at the retirement village and the percentage of residents who are:
occupying a residence pursuant to a lease or licence;
occupying a residence pursuant to a right to occupation conferred by ownership of shares;
occupying a residence that they have purchased; and
occupying land within the retirement village pursuant to a lease or licence under section 57 of the Act (ie for residential purposes such as a residential tenancy under the Residential Tenancies Act 1995 (SA)).
Next steps, to avoid non-Compliance
The Act has various penalties for non-compliance with the requirements for disclosure statements with many requirements having a maximum penalty of $35,000. To ensure operators are not exposed to this financial and regulatory risks, it is important to understand the new requirements and implement the changes needed for compliance.
It is important to review and revise your template disclosure statements ready for 2 February 2026 to ensure they meet the new requirements and are consistent with the accompanying template residence contract as well as amending template residence contracts to be compliant with the new requirements under the Act.
Our compliance checklist can help you understand the changes affecting your operations and your next steps ahead of 2 February 2026.
Disclaimer + outro:
This article is for general information only and cannot be relied upon as legal advice. The application of and obligations under the Act and Regulations will depend on the type of operator you are and the services you offer. Do not act on the basis of this document but seek specific advice from your legal adviser.
Cowell Clarke’s dedicated Aged Care and Retirement Living Team continues to work closely with operators and aged care entities to ensure their best possible outcomes are achieved whilst ensuring compliance.
For further information, please contact our Aged Care, Retirement Living and Health Team.
This publication has been prepared for general guidance on matters of interest only and does not constitute professional legal advice. You should not act upon the information contained in this publication without obtaining specific professional legal advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication and to the extent permitted by law, Cowell Clarke does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting or refraining to act in relation on the information contained in this publication or for any decision based on it.