On 1 May 2026, significant reforms to the Retirement Villages Act 1986 (Vic) (Act) and the Retirement Villages Regulations 2026 (Vic) (Regulations) commenced, impacting both residents and operators of retirement villages in Victoria. The updated Act and new Regulations introduce additional requirements which operators in this sector must observe in order to remain compliant.
What has changed?
Some of the key action items arising out of the reforms require Victorian operators to:
Prepare new Residence and/or Management Contract Templates for incoming residents. These new Templates must be in the prescribed form and are mandatory from 1 September 2026. Operators may prepare these new Templates now, or use a Transitional Residence and/or Management Contract Template for incoming residents, which must comply with the transitional requirements under the Act and Regulations.
Prepare an Information Statement for each retirement village.
Review and amend the village Dispute Resolution Procedure to comply with new requirements, such as record keeping obligations and contact details for a primary and alternative contact person.
Publish the Information Statement and Dispute Resolution Procedure on the operator’s website.
Prepare and implement a Capital Maintenance Plan and Capital Maintenance Fund (if applicable).
Undertake emergency planning at the village, including preparing emergency plans, displaying key information and organising annual safety procedures.
Review and update internal policies and procedures to comply with the new obligations and constraints under the Act and Regulations (such as contract checks, termination requirements, etc.).
When do the changes apply?
It is also beneficial that operators understand when such changes will apply and to whom. This is important as although many changes will only apply to residents entering a village post 1 May 2026, some changes apply retrospectively. For example, changes relating to contract checks and will apply retrospectively, whereas, in other cases, operators will remain bound by the terms of existing Residence and Management Contracts.
The recent reforms introduce significant penalties for non-compliance with the requirements of the Act and Regulations, with many offences carrying a maximum penalty of approximately $61,000 per breach.
How we can assist you
To ensure operators are not exposed to financial and regulatory risks, it is important to understand the new requirements and implement the changes needed to uphold compliance. At Cowell Clarke, we are here to guide operators every step of the way.
To help you get started, we have created a free Compliance Checklist that explores the key action items that operators will need to address as part of these recent reforms. You can access our Compliance Checklist by clicking here.
If you wish to receive updates, you can subscribe to our mailing list.
Cowell Clarke’s dedicated Aged Care and Retirement Living Team continues to work closely with operators and aged care providers 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.
