The Government has today released the outcome of its long-awaited review of the Retirement Villages Act 2003, signalling the most significant shift in the regulatory landscape for retirement village operators in two decades.

Key changes will include:

• A mandatory 12-month timeframe for the repayment of residents' capital sums.  
• Requirement to pay interest on a resident's capital sum if the unit has not been relicensed after six months.
• Early access to funds for former residents in defined situations of financial need.  
• Weekly fees and deductions ceasing immediately when a resident leaves.
• Operators to pay costs of maintenance, repair and replacement of operator-owned chattels and fixtures.
• A new independent dispute resolution scheme to provide more accessible and efficient pathways for resolving complaints.

There will be exemptions for some of these requirements. The Government expects to introduce the amending Bill mid-2026, with a Select Committee process to follow.

Our Retirement Villages team will publish a deep dive on the proposed reforms and their implications for operators, including what steps can be taken now to prepare for the upcoming legislative changes. We will share our full analysis shortly.