Retirement Living Council Executive Director Daniel Gannon has responded to today’s opinion article, “Be transparent or operators will pay the price”.
The article – which you can read HERE – includes the paragraph:
“The South Australian Government has released 60 proposed changes to the Retirement Villages Act 2016 that aim to make contracts, exit fees and re-marketing rules clearer. It will demand a far better disclosure of information to prospective residents.”
Here is Daniel’s response:
“Residents want choice and flexibility, which is why the retirement industry offers a range of contract options to best suit their needs.
“Importantly, the sector works closely and openly with governments, regulators, residents and their families to ensure that Australians have the information they need to make a decision that's right for them during this important stage of life.
“We know that contract transparency is vital from the outset, which underpins the reform work we are currently undertaking with governments.
“Age-friendly communities across the country contribute more than $3.3 billion in savings to governments through reduced interaction with GPs and hospitals, and most importantly through delayed entry into aged care.
“We’re finalising our submission for government’s consideration at the moment, which will be sent to the Minister by 19 May.
“Many of the proposed legislative changes will be supported by industry in the interests of strengthening consumer and investor confidence, especially as they relate to transparency and to some extent exit entitlements.
“We know that the vast majority of residents have a wonderful experience living in age-friendly communities, but there are some instances where these expectations are not met. When this happens, it often relates to disclosure statements.
“Industry is supportive of greater clarity and certainty for prospective residents to ensure they understand the tenure model they are entering, the fees they are agreeing to pay, and their rights and obligations. Equally, we always encourage prospective residents to seek their own independent legal and financial advice.
“If there are bad operators in the market, they should be held accountable – but this is not the industry standard.
“This review comes at a precarious time given South Australia – like the rest of the nation – is facing challenges around housing supply, affordability, cost and supply chain constraints.
“If these reforms make it harder for operators to build and operate age-friendly communities, it could place a handbrake on supply at the worst possible time.”
