- Parliament greenlights fairer retirement village laws
- Former residents to receive exit entitlements within 12 months of leaving a village
- Clearer upfront information to make it easier to compare options
Fairer retirement village laws are on their way, with the Cook 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 .
As stated by Commerce Minister Sue Ellery:
"The Cook Government has delivered on its promise to provide better protections for retirement village residents, with the passing of reforms that will also promote confidence in the sector to support future development.
"The amendments cover every stage of the retirement living experience, from finding the right village and living there, to when it eventually comes time to leave.
"Potential residents will benefit from clearer upfront information, and a 12-month exit entitlement payment deadline will ensure former residents receive their funds promptly, reducing financial uncertainty."
As stated by Village Retirement WA President Hank de Smit:
"On behalf of our members andresidents of all retirement villages in Western Australia we are delighted that theRetirement Village Reforms have been passed by the WA Parliament.
"Village Retirement WA has worked closely with the State Government advocating for fairer retirement village laws over many years and the reforms are a positive step toward protecting the rights of retirement village residents and their families.
"As the new reforms roll out over the course of the next 12 months, Village Retirement WA will continue to engage with our members and provide feedback to the Government on the implementation process and continuing needs of the sector."
