New retirement village reforms begin 1 September
- Exit payments: Due within 12 months
- Aged care: Direct payment option introduced
- New rules: Budgets, conduct and closures
- Next: More reforms over two years
Thousands of Western Australians living in retirement villages will gain stronger financial protections from 1 September.
The first stage of the Cook Government’s retirement village reforms introduces a number of major changes.
The most significant reform requires operators to pay resident’ exit entitlements within 12 months of them leaving a village. Eligible residents will also be able to direct part of their exit entitlement towards aged care accommodation costs.
The reforms affect around 25,000 Western Australians currently living in retirement villages, with demand for the sector expected to grow as the population ages.
The financial changes are part of a wider package of reforms aimed at strengthening consumer protections while providing greater clarity for both residents and operators.
From September, operators will also be required to consult residents before finalising annual village budgets, while new Rules of Conduct will establish clear behavioural and professional standards for operators, employees and residents.
New requirements governing retirement village closures will also come into force, including mandatory termination plans that must be approved by Consumer Protection before a village can close.
The changes represent the first stage of a five-phase reform program that will be introduced over the next two years,.
Later stages of the reforms will introduce stronger disclosure obligations for prospective residents, establish a public register of retirement villages to assist consumers comparing villages, and update the rules governing capital works expenses.
Commerce Minister Dr Tony Buti said the reforms were designed to provide greater certainty for residents while improving transparency across the sector.
“From September 1, residents will have clearer financial protections, particularly around exit entitlements and moving into aged care,” Dr Buti said.
“These reforms also introduce stronger consultation requirements and clearer operational standards for operators, ensuring retirement villages remain fair, transparent and well managed.”
The reforms were developed following consultation with retirement village operators, resident organisations and other stakeholders.
Further information about the reforms is available from Consumer Protection.
