Last updated 22 June 2016
An operator must keep separate accounts for the retirement village’s capital replacement fund and maintenance reserve fund (s 111 Retirement Villages Act 1999 (Cth) (Retirement Villages Act)). The operator must then ensure that a quarterly financial statement about the income and expenditure of the capital replacement fund, maintenance reserve fund and general services account is given on request to any resident (s 112 Retirement Villages Act).
The operator must also ensure that a financial statement showing the relevant particulars about the retirement village’s operation is given on request to a resident within five months after the end of each financial year. The relevant particulars are (s 113 Retirement Villages Act):
- income and expenditure during the financial year
- amounts received for insurance claims relating to the village
- the assets and liabilities relating to the village
- interest, mortgages and other charges affecting the village’s property.
The statement must be audited, and a copy of the report must also be given to the Chief Executive of the Office of Fair Trading within five months after the end of each financial year.