Issues
- Increases in Fees
- Queensland Retirement Villages "Paper"
- Reinstatement Works (ARQRV Position Paper)
- Village Budgeting (ARQRV Position Paper)
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]
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Salaries and wages determined under State or Federal Acts
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Insurance premiums
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Maintenance reserve fund contributions
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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 General Services Charge 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.
Queensland Retirement Villages "Paper"
The Department of Justice and Attorney-General (Office of Fair Trading) have issued a Discussion Paper with the above heading to look at the impact of the closure of Retirement Villages on residents. Interested residents can find the Discussion Paper using the link below.
http://www.fairtrading.qld.gov.au/AboutUs/retirement_villages_discussion_paper.pdf
The ARQRV will be sending in a submission dealing with this paper. Note there is a closing date - 9th October 2011 - for submissions. There are a number of issues which are of vital importance to residents. The next Newsletter will probably contain our submission.
The ARQRV Position Paper
on
Issues arising in relation to reinstatement works
This paper outlines the two main areas for disputes in the reinstatement of the unit when a resident exits the village. What works are necessary, and who is responsible for the costs are the issues that result in many disputes. The ARQRV considers that most of the issues arise from deficiencies in the RVAct. The ARQRV in this paper suggests the necessary changes to the legislation to protect elderly consumers leaving their village. Click
to read this four page paper.
The ARQRV Position Paper
On
Village Budgeting – Operation of s106 and s102A
This position paper deals specifically with the legislation concerning the charges for the General Services paid by the residents and other parties. For each resident a clear understanding of how the General Services Levy is calculated is important since if the Levy becomes too high some residents may be forced to leave their village prematurely. This six page paper makes frequent references to the Retirement Village Act (RVAct 1999 Qld) so one may find it helpful to have the Act minimised on the taskbar while reading this paper. Click on the link “Village Budgeting” to read this PDF file. There is a link to the RVAct under the “Links” heading at the top of each ARQRV website page. Minimise the current ARQRV website, and again go to the ARQRV website and click on “Links”, and under (1) Government click on the link to the RVAct. When this act is minimised the Village Budgeting paper will be maximised and vice versa.