Fairer retirement village laws are on their way, with the State Government’s reforms to the Retirement Villages Act 1992 passing State Parliament.
The changes include a new time limit for exit payments to be made to departing residents.
Those leaving a village will have more certainty over their finances. Exit entitlements are to be paid to holders of a lease-for-life, and compulsory buybacks of strata titled properties to be completed, within 12 months of departure.
Additionally, former residents will be able to request financial assistance from village operators to cover aged care costs while awaiting the payment of their exit entitlements.
Operators will be able to seek extensions for exit entitlement and buyback obligations from the Commissioner for Consumer Protection where necessary. The Duties Act 2008 will be amended to exempt operators from paying transfer duty in cases of compulsory buybacks.
Prospective residents will find it easier to compare villages and make more informed decisions, with a new requirement for operators to provide earlier and clearer information about their villages and a new register that will provide public access to information and advice.
Existing residents will also benefit from reforms that clarify the responsibilities of retirement village operators for maintenance of village facilities, and the responsibilities of residents to prepare their unit for resale. There will be a new process for making changes to village facilities and services, with safeguards in place to protect those who live there and make sure that they are consulted about changes that will affect their day-to-day life.
Operators will have 12 months to prepare for the new time limit on exit entitlements and for new disclosure and contract requirements, with the new requirements expected to commence at the end of 2025.
More information on the new laws being proposed is available on the Consumer Protection website.
