- Fairer retirement village laws introduced to Parliament
- Exit entitlements to be paid out within 12-months of leaving a village
- Clearer upfront information to protect residents from misunderstandings
The Cook Government is working to make retirement village laws fairer for residents whilst 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.
As stated by Commerce Minister Sue Ellery:
"Retirement villages offer a much sought-after lifestyle for older Western Australians, with around 300 villages providing homes for an estimated 25,500 residents right across the State.
"With such a wide range of villages and financial models to now choose from, new legislation was needed to allow residents to make well-informed choices about their retirement village living journey, as well as to promote confidence in the sector to support future development.
"Requirements for clearer upfront information will prevent any misunderstandings for potential residents about what they are signing up to.
"Bringing in a 12-month time limit for exit entitlements to be paid out will stop the uncertainty some seniors face after leaving a village about when they will receive their money to fund their future living needs."
As stated by Western Australian Retirement Villages Residents Association President Hank de Smit:
"We are delighted that - after many years of working closely with retirement village residents and the State Government - the proposed legislative reforms will be debated in Parliament.
"This is a positive step toward protecting the rights of retirement village residents and their families, and we look forward to the reforms passing and continuing to advocate for the sector."
