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Which items is the operator responsible for?
From 1 May 2026, the operator of a retirement villageis responsible for all items of capital in the village except:
- items owned by a resident
- items on common property owned by an owners corporation
- items installed by residents for private use, and
- roads within the village managed by local government or other authorities.
What are ‘items of capital’?
Items of capital are all of the following:
- buildings and structures within a village
- plant, machinery, and equipment used in the operation of a village
- a part of the infrastructure of the village
- items specifically listed in regulations.
Items of capital which are specifically listed in the regulations are:
- walls, cladding, floors, ceilings and roofs
- boilers, central heating equipment and pumps
- fences and gates
- garage doors, lockable sheds and car ports
- air-conditioning systems and units
- roads and pathways within the village
- solar panels and electric vehicle chargers.
Fixtures of capital items form part of the item and are included in the definition. Whether something is a fixture will depend on the specific circumstances. Generally, anything affixed (so that removal would require tools, major work or cause damage) or otherwise intended to form a permanent part of the item may be considered a fixture.
For example, fixtures to a building within a village will commonly include:
- tiles and other permanent floor coverings
- smoke detectors and alarm systems
- ceiling and exhaust fans
- toilets and toilet cisterns
- fixed ovens and stovetops.
These are broad categories and some items may be captured by more than one category. For example, a fixed stove or oven may be viewed as fixtures forming part of a building and as a part of the infrastructure of the village. If an operator or resident is unsure if something within a village is a capital item, they should consider getting independent legal advice.
The operator's obligation for maintenance and repairs
The operator must maintain every item of capital for which the operator is responsible in a reasonable condition, having regard to:
- the age of the item
- its prospective life, and
- the maintenance charges paid by residents.
Where it is not practical to maintain an item, the operator may replace it instead.
The operator must carry out maintenance or replacement within a reasonable time after becoming aware of the need.
Notifying the operator of repairs
A resident must notify the operator as soon as they become aware of the need for maintenance or replacement of any item of capital for which the operator is responsible that is located within their premises.
Urgent repairs: When a resident can act
If maintenance or replacement is urgent and the operator fails to act, a resident may arrange the work themselves, provided the resident has first taken reasonable steps to get the operator to carry out the work immediately and has been unable to do so.
Urgent matters are defined as any of the following:
- a burst water service
- a blocked or broken lavatory service
- a serious roof leak
- a gas leak
- a dangerous electrical fault
- flooding or serious flood damage
- serious storm or fire damage
- a failure or breakdown of the gas, electricity or water supply to premises in the village
- a failure or breakdown of any essential service on the premises for hot water, cooking, heating or laundering
- any fault or damage that causes the village to be unsafe or insecure
- a failure of telecommunication systems such as telephone or internet services
- a failure of an alarm system within the village
- any fault or damage that impedes a resident's reasonable access to their premises.
Reimbursement for urgent repairs
Where a resident carries out urgent maintenance or replacement, the resident must give the operator written notice of the work carried out and its cost.
The operator must reimburse the resident for the reasonable cost within 7 days of receiving that written notice.
Resident obligations
Residents must:
- not hinder or obstruct the operator or any person authorised by the operator from carrying out capital maintenance or capital replacement
- reimburse the operator for any damage, other than fair wear and tear, that the resident causes to an item of capital for which the operator is responsible.
Fair wear and tear means deterioration caused by the reasonable use of the premises, fixtures or fittings, or by natural environmental forces.
Condition report for non-owner residents
From 1 May 2026, before a non-owner resident enters into occupation of premises, the operator must give the resident two copies of a condition report in the prescribed form, signed by the operator, specifying the state of repair and general condition of the premises.
Within 5 business days after moving in, the resident must return one signed copy to the operator, either agreeing with the report or noting any disagreements.
If the operator does not provide a condition report before occupation, the resident may complete one themselves and give it to the operator within 5 business days of moving in.
The condition report is evidence of the state of repair on the day specified. This protects residents from being held responsible for damage that existed before they moved in, and protects operators from claims about pre-existing conditions that were recorded in the report.
A condition report given to the operator is also taken to be notice to the operator of any defects or outstanding repairs recorded in it.