Big changes are coming to Victoria’s retirement living sector. The Retirement Villages Amendment Act 2025 – which updates the long-standing Retirement Villages Act 1986 – received Royal Assent on 3 June 2025 and represents the most significant reform to retirement village legislation in decades. The Act introduces major reforms aimed at strengthening consumer protections and enhancing the rights of residents, while establishing new responsibilities and standards for operators to ensure greater transparency, accountability and fairness in the management of retirement communities. Although the legislation is now law, it will not take effect until 1 May 2026, giving operators time to prepare for compliance.

For many of our not-for-profit clients who either operate retirement villages or support older Australians, these reforms mark an important shift towards greater transparency, accountability and resident-centred care.

What’s Changing?

The reforms aim to make life simpler and fairer for residents, while creating clearer standards for operators.

The key changes taking place include:

• Standardised contracts and disclosures – Plain-language agreements and clearer financial documents make it easier for residents and families to understand commitments and compare options.
• Exit entitlements and fees – New rules govern how exit fees are calculated and when former residents must be paid, with stronger safeguards to avoid delays.
• Cooling-off period – Prospective residents now have a 7-business-day window to reconsider a contract before it becomes binding.
• Resident protections – Residents’ rights to dignity, respect and in-home care where safely provided are formally recognised.
• Dispute resolution pathways – Faster, lower-cost processes, with escalation to VCAT for more serious matters.
• Pre-entry condition reports and maintenance obligations – Operators must provide condition reports before occupancy, clarify maintenance responsibilities and be transparent about future capital works.
• Mandatory Code of Practice – To be developed by Consumer Affairs Victoria, the Code will set minimum standards for governance, financial management, and resident engagement. It will be legally enforceable and provide clear rules on board accountability, fee disclosures, exit entitlements and handling resident feedback.
• Governance and transparency – Stronger expectations for boards and management around accountability, financial reporting, and consultation with residents.

What operators need to do

For operators, these reforms are both a compliance requirement and an opportunity to strengthen governance and resident trust. Boards and leadership teams will need to:

• Review contracts, disclosure documents and policies to ensure they reflect the new standards.
• Update governance frameworks and reporting practices once the Code of Practice is released.
• Consider financial impacts, particularly around exit entitlement obligations.
• Ensure staff and volunteers understand the shift towards resident-centred service delivery.

Next steps

• Track the timeline – Implementation is staged, but preparation should start well before May 2026.
• Review and refresh – Audit current contracts, financial documents, maintenance plans, and policies against the new requirements.
• Engage leadership – Make reform readiness a standing agenda item for boards and management teams.
• Plan for resident communication – Develop strategies to keep current and prospective residents informed about changes.
• Seek advice early – Accounting, legal, and compliance advisors can help ensure smooth implementation and reduce risk of non-compliance.

Final thoughts

These reforms are designed to strengthen trust and transparency in retirement living. Operators who prepare now will be better positioned to deliver high-quality, resident-focused care while meeting their legal obligations.

If you would like to explore how these reforms may affect your organisation, our team is here to support you.

Contact us to discuss how we can help you.