NSW land lease operators have just 12 months to action site fee increases

On 21 June, the NSW Government passed new laws that will impact residential land lease communities in the state. 

The main changes are: 

• A fixed method for site fee increases Operators must use a single element to calculate a site fee increase under the fixed method.   
• A price cap for electricity charges in 40% of communities with embedded networks.  
• When an operator issues a by-notice site fee increase, they must detail a reason for the increase.   
• Home owners allowed to make certain minor changes to their homes without the need for operator consent.  

The statutory review of the NSW Residential (Land Lease) Communities Act 2013 was completed in 2021. The report was tabled in Parliament, the previous government did not act on its recommendations. One of those recommendations was allowing three years for land lease community providers to transition to the fixed site fee structure. 

The Labour Government made an amendment to reduce the transition period for operators from three years to 12 months, which Bob Browne, General Counsel and Company Secretary, of Manufactured Housing Association NSW, Land Lease Living Industry Association and Caravan and Camping Association NSW, said gave operators little time to change fixed fee methods, for example, CPI + a $ amount to a single element.  

Gary Martin, CEO of the Affiliated Residential Park Residents Association (ARPRA), said the amendments would have a significant impact for residents of land lease communities. 

“The reduction of the transition period for fixed term agreements from three years to 12 months is a significant victory for residents, who have long faced uncertainty and financial pressure,” he said. 

Browse villages.com.au for the latest on Seniors Living including availability.