Media Release, 4 December 2008

Fair Trading Minister Virginia Judge today welcomed the passage of the Retirement Villages Amendment Bill 2008 by the NSW Parliament.

Ms Judge said the new laws would better protect the rights of retirement village residents without compromising the viability of an industry vital to our ageing population.

“Retirement villages are an increasingly popular lifestyle choice for NSW seniors,” Ms Judge said.

“Hundreds of villages across the State are home to tens of thousands of retirees.

“When I was sworn in as Minister, I committed to listening to residents’ concerns and resolved that some issues could be tackled in a different way.

“The outstanding issue was the proposed change to the way residents and operators would split capital costs.”

Ms Judge actively consulted with peak bodies including the Retirement Village Residents Association, the Retirement Village Association and the Aged and Community Services Association (representing not-for-profit and charitable operators).

“All parties indicated to me they wanted the situation resolved as soon as possible,” she said.

“That section of the Bill has been changed in response to ongoing concerns from residents, who have endorsed the solution.

“Now, residents and operators can move forward with certainty and security.”

Ms Judge said the new laws would deliver a range of benefits to residents and villages, including:

reducing the period that a former occupant is required to pay recurrent charges, or is fully responsible for those charges
introducing a 90-day settling-in period for new residents, during which they may terminate a contract and only be responsible for market rent and an administration fee
requiring operators to hold annual meetings with residents
ensuring operators make good any budget deficit at the end of each financial year
establishing new safety and emergency procedures within villages, and
streamlining compliance requirements for smaller village operators.
“One of the most significant wins for residents is the new 90-day settling in period,” Ms Judge said.

The settling-in period for new residents will not affect the timing or payment of the refund for the outgoing resident, which becomes the responsibility of the operator if the new resident’s contract is terminated.

“The new laws also level the playing field for outgoing residents and their families, so people who have already vacated their unit when the Act commences benefit from this package of reforms.”

Operators will be required to provide prospective residents with general inquiry and detailed disclosure statements, helping them to make better informed choices.

Another reform will create a comprehensive public register of all retirement villages in NSW, which will assist in the Government’s ongoing communication with residents and operator compliance programs.

“This Bill provides the legislative framework to protect residents’ rights and allow the industry to meet the needs of our ageing population,” Ms Judge said.

“I thank residents and operators for carefully considering the issues through open, constructive dialogue.

“I am committed to maintaining the positive and productive working relationship we have developed as we plan for the implementation of the new laws.

“The Government will also mount an information campaign for residents and operators to explain the changes.”