
State in Focus: Victoria
- Categories Key things to help you everyday, Retirement Villages
- Date December 10, 2024
Minister for Consumer Affairs Gabrielle Williams (pictured) introduced the Retirement Villages Amendment Bill into Victorian Parliament, claiming it gives residents in retirement villages some of the strongest protections in Australia.
“Older Victorians in retirement villages should be confident that their contracts are fair and transparent – so they can focus on enjoying their retirement,” said Minister Williams.
“These reforms will empower residents to make informed decisions, support them to resolve disputes and promote best practice in retirement village management.”
The Retirement Villages Amendment Bill states, in part:
- Retirement village contracts will be standardised and clearer about entry and exit processes so prospective residents are better informed before signing.
- Implement stronger controls on how exit fees are calculated and a requirement for annual contract checks, so residents always understand their obligations.
- For all new contracts, entitlements will need to be paid within 12 months of a resident leaving.
- Dispute resolution processes will be strengthened with new consistent procedures set up in all villages and a new alternative dispute resolution service set up within the Department of Government Services.
- Restrictions on sharing any capital gain and capital loss with the resident – they must be shared in the same proportion; as well as new definitions of what comprises a capital gain and capital loss;
- Restrictions upon a resident’s obligations to repair, reinstate or refurbish the premises upon departure – the resident is not responsible for fair wear and tear, the resident is responsible for reinstatement but is not responsible for renovation or upgrade works.
Also significant, there are two ‘firsts’ for any state proposed in the Amendment Bill:
- A stipulation that a retirement village operator cannot remove a resident for health reasons if the resident can be cared for in their home and received care services.
- In 2025, a mandatory Retirement Villages Code of Practice will be developed in consultation with the community and retirement village sector.
The Retirement Living Council (RLC) and ACCPA jointly have a voluntary Code of Conduct, but just 30% of all operators have signed up to it. The RLC has announced a significant cut in the code’s annual subscription price to try to motivate operators to sign up.
Interestingly in NSW, where the Regulations contain a Rules of Conduct which sets out required responsibilities, offense provisions are attached with financial penalties. Only time will tell if Victoria goes as far with their Code.
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Australia's largest professional development for village and community manager and head office staff.
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Australia's largest professional development for village and community manager and head office staff.
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