Wholesale changes to the state’s Retirement Villages Act 1992 will now be drafted by the West Australian Government, it was announced yesterday.
“All stages of the retirement village journey will be covered, from choosing the right village and signing the initial sales contract, through to living in the village and the rules relating to exiting the village,” said Sue Ellery, Minister for Finance; Commerce; Women’s Interests, in a statement.
The changes include:
- Exit entitlements to former residents to be paid within 12 months from when the resident leaves;
- Greater disclosure requirements for operators so consumers better understand the contract they are signing and the product they are buying, including the amenities and services to be provided;
- Clarifying the obligations of operators around the financial management and maintenance of the village;
- The establishment of a process for operators to make significant changes to a retirement village, subject to safeguards for residents; and
- Refining the memorial requirements of the village land to ensure that residents’ interests are protected, while ensuring there is flexibility for operators to make changes to the land.
Property Council WA Executive Director Sandra Brewer said the retirement living sector is “supportive of changes to make retirement village life more attractive to future residents.”
“We continue to advocate for a finely tuned approach to exit entitlements, as the imposition of a 12-month deadline may represent a serious financial burden for smaller, Not for Profit villages. Industry appreciates the 12-month implementation and the ongoing constructive relationship we have with the government as the details of an exit entitlement model are finalized,” she said.
“Exit entitlements changes have consequences for the retirement living industry including increased costs for operators and future residents, however the Property Council of WA has engaged extensively with state government throughout the Retirement Living reform process and shared our concerns.”
“At a time when WA faces housing shortages, encouraging the long-term growth and vibrancy of the retirement village sector is crucial. Retirement villages are vital in the housing mix, providing affordable homes that offer safety and community for people as they age. The Property Council of WA will continue to work with the state government to ensure the best outcomes for the retirement living industry are achieved.”
