Both retirement village residents and operators are being urged to comment on new proposals designed to address concerns about “onerous contracts” and “unfair fees”, particularly in relating to exiting a village.
NSW Better Regulation Minister, Kevin Anderson (pictured), said it’s important that the public and sector have clarity around exit charges.
“Reforms to the retirement village sector aim to better protect residents and their families by providing transparency and accountability around fees and charges,” he said.
“One of the key recommendations from the independent 2017 Greiner inquiry into the retirement village sector was reforming the way exit entitlements are paid and recurrent fees for general services are charged.”
Unit owners have complained about having to wait for their homes to be sold before being able to access exit entitlements – particularly those trying to move into an aged care facility. Others have been charged management and operational fees for months (and sometimes years) after moving out.
Under the proposed reforms, the government plans to introduce a 42-day limit on the length of time villages can charge for general services after the departure of a resident.
It will also mandate that exit entitlements be repaid within six months of a resident moving out of a retirement village in metropolitan areas and 12 months in regional areas.
A discussion paper outlining the full reforms was released last week – read it HERE. Submissions from the public on the paper are open until August 16. Find out how to make one HERE.
