New laws for South Australia’s retirement village operators have sting in tail
New and enhanced expectations and requirements have been placed on operators after increased consumer protections came into force under reforms introduced by the South Australian Government on Monday (2 February).
The changes, delivered through the Retirement Villages (Miscellaneous) Amendment Act 2024, are meant to give residents clearer rights, improve transparency for people considering a move, and set more consistent expectations for operators across the state.
The new Codes of Conduct introduce a new structure which comprises two aspects: the ‘good practice principles’ and the ‘requirements’, in addition to the enhanced consultation requirements for operators.
The good practice principles set out behavioral expectations for residents, village staff and operators and substantially expands on the obligations in the existing Code of Conduct.
While it will not be an offence under the Retirement Villages Act 2016 (SA), if an operator or village staff does not comply with the good practice principles, it is important that each are aware of the new expectations.
Significantly, from 5 December 2026, if a requirement is breached by an operator, village manager or senior manager, it will constitute an offence by that person or operator.
Under the new Codes of Conduct, operators, village managers and senior managers must:
- not knowingly, or with reckless indifference, put the safety of a resident at serious risk;
- not harass or intimidate a resident or prospective resident or a person acting on their behalf; and
- not knowingly provide false or misleading information to a resident or prospective resident, including during marketing, dispute resolution and consultation activities.
For operators, the requirements extend further than those of village managers and senior managers, including restrictions on charging fees for the preparation or provision of certain documents and making changes to the surplus and deficit policy.
For residents, the reforms are aimed at removing uncertainty around fees, contracts and decision-making, while strengthening compliance and oversight to lift standards across the retirement living experience.
Among the key protections now in place are caps on certain fees, including limits on how much can be deducted from a resident’s exit entitlement as a contribution to capital funds. In some circumstances, increases to recurrent charges have also been restricted.
The timeframe for repayment of exit fees has also been shortened, reducing the maximum wait from 18 months to 12 months plus 30 days.
Prospective residents are expected to see clearer and more detailed information before signing on, with improved disclosure requirements in contracts and disclosure statements.
The Government says these changes are designed to make it easier for older South Australians and their families to understand long-term costs, responsibilities and expectations before making a significant life decision.
“With the new rules about to take effect, now is the right time for operators to review contracts and operating procedures and ensure everything is ready and compliant with the changes,” Retirement Living Council National Policy Director Oliver Luckhurst-Smith said.
SA’s Department of Human Services SA Office for Ageing Well has published a suite of practical resources for village operators and residents to support the transition. You can read more here.
