The State Government is working to make retirement village laws fairer for residents while supporting the sector with the introduction of reforms to the Retirement Villages Act 1992 introduced into Parliament today.
The reforms were developed following extensive consultation with the community and industry to balance the needs of residents and operators. Every stage of the retirement living journey will be covered, from making it easier to choose a suitable village, to living in the facility, and the rules relating to exiting the village.
Changes include ensuring timely payment of exit entitlements for holders of a lease-for-life, or completion of buybacks of strata titled properties for former residents within 12 months of leaving the village. Residents will also be able to ask the operator for help with aged care fees while waiting for their unit to be sold.
The reforms will also require operators to provide earlier and clearer information about their villages to help prospective residents compare villages and make more informed decisions, clarify the obligations and responsibilities of operators around maintenance of the village, and establish a process for operators to make changes to a retirement village, subject to safeguards for residents.
Operators will be able to apply to the Commissioner for extensions to exit entitlement and buyback obligations where required. An amendment will be made to the Duties Act 2008 to exempt operators from paying transfer duty in the event of a compulsory buyback.
Once the legislation passes Parliament, operators will have 12 months to comply with the new time limit on exit entitlements.
More information on the new laws being proposed is available on the Consumer Protection website.
