Changes to SA RV Act strike consumer-operator balance
The Retirement Living Council (RLC) welcomes the passage of the Retirement Villages (Miscellaneous) Amendment Bill 2024 through both houses of the South Australian Parliament.
Last night, the Bill passed the Upper House with RLC Executive Director Daniel Gannon declaring the legislation strikes a balance for all stakeholders.
"We've worked hard with residents' groups and parliamentarians to ensure this legislation strikes a balance between residents and operators, and that it is fair and reasonable," Mr Gannon said.
"We believe this Bill appropriately achieves a balance that is necessary to ensure residents and industry are supported at a time when the housing supply crisis and cost of living pressures are impacting all Australians.
"Given historic criticism about contract complexity, we've worked with the State Government to inject more transparency, clarity and certainty at the front end of this process so older Australians can be better informed as they consider this important housing option.
"We've done this because we're motivated by increasing consumer confidence in retirement living sector - not diminishing it.
"Retirement village operators continue to strengthen their offering to residents every day, with better contracts, better services, more certainty, clarity and transparency - especially at the time of signing contracts."
Mr Gannon said the retirement living sector is a critical resource for the State Government as it continues to battle key issues impacting South Australians.
"Given South Australia's over-75s cohort will increase by 64 per cent by 2040, it's critical that our legislative environment encourages development of more age-friendly communities," he said.
"South Australia faces the reality of significant increases in its ageing population alongside the housing supply and healthcare crisis - pressures that retirement communities can help alleviate."
Property Council South Australia Executive Director Bruce Djite said it was pleasing to see legislation that balances resident and operator considerations to ensure industry continues to provide meaningful housing solutions.
"A viable and strong retirement living industry in South Australia advances the state government's capacity to pursue solutions to the housing crisis," Mr Djite said.
"There is an opportunity to tap into a privately funded housing type, which provides purpose-built accommodation for older South Australians, and frees up important housing supply in the market when they choose to 'rightsize'."
- Stricter regulation of resident contracts and disclosure statements, including:
- Clear definitions of contractual terms and occupancy details.
- Explanation of residents' rights and responsibilities.
- Fee and charge calculations, including variations based on length of residence, with worked examples for 2, 5, and 10 years.
- Requirement for earlier provision of the premises condition report.
- Enhanced financial reporting and consultation processes for residents.
- Reduction of the statutory buyback period for vacating residents from 18 months to 12 months to expedite exit entitlements.
- Capping recurrent charge increases (when not covered in contracts) to align with the consumer price index
- Limiting capital maintenance costs for outgoing residents or their families to a maximum of 12.5% of the sale price of their residence.
