Victorian Numbered Regulations Victorian Numbered RegulationsSch. 4
CALCULATION OF REFUNDABLE IN-GOING CONTRIBUTION WHERE IN-GOING CONTRIBUTION LESS THAN MARKET VALUE
1. The following clauses apply if the non-owner resident becomes entitled to payment of the refundable in-going contribution before another person has paid an in-going contribution in respect of the premises of the non-owner resident.
2. The parties agree that—
(a) if—
(i) the amount of the in-going contribution being sought in respect of the premises is determined with reference to factors other than or in addition to the market value of the residence right; and
(ii) the amount of the in-going contribution is accordingly less than the market value of the residence right—
clause 3 will apply; and
(b) in any other case, clause 5 will apply.
3. Under sub-clause (2)(a), the refundable in-going contribution will be calculated as if another person had paid the proxy amount determined in accordance with sub-clause (4) as an in-going contribution under a residence contract in relation to the premises.
4. For the purposes of sub-clause (3), the proxy amount is—
(a) the amount paid as an in-going contribution by the resident, indexed in accordance with the following formula—
where—
"A" is the amount of in-going contribution paid by the resident; and
"B" is the CPI for the quarter previous to the quarter in which the payment of the refundable in-going contribution falls due; and
"C" is the CPI for the quarter previous to the quarter in which the in-going contribution was paid by the resident under the residence contract; or
(b) if a higher amount is agreed between the parties, that amount.
5. If sub-clause (2)(b) applies, the refundable in-going contribution will be calculated as if another person had paid the proxy amount determined in accordance with sub-clause (6) as an in-going contribution under a residence contract in relation to the premises.
6. For the purposes of clause 5, the proxy amount is the current market value of the residence right as determined by an independent valuation obtained from—
(a) an independent valuer agreed by the parties; or
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(b) if the parties cannot agree, a valuer appointed by the President of the Victorian Division of the Australian Property Institute.
7. The parties agree that—
(a) if the resident is entitled under this contract to a proportion of any amount by which the in-going contribution paid by the resident is exceeded by the next in-going contribution paid in respect of the premises, the resident is liable for the costs of a valuation under clause (6) in the same proportion; and
(b) the owner is liable for any costs of a valuation under clause (6) for which the resident is not liable under sub-clause (a).
8. In clauses 1–7 and this clause—
"Australian Statistician" has the same meaning as it has in the Australian Bureau of Statistics Act 1975 of the Commonwealth;
"CPI" means the All Groups Consumer Price Index number (for Melbourne) published by the Australian Statistician; and
"Victorian Division of the Australian Property Institute" means the division of the association registered as the Australian Property Institute under the Associations Incorporation Act 1985 of South Australia managing the association's business in Victoria.