Exit entitlement deadlines are among the greatest areas of contention for the state government’s retirement village reform plans, a Property Council event heard this morning.
Department of Commerce director of legislation and policy, Penny Lipscombe, said refurbishment, conduct obligations, advertising and price structure, and mandatory reserve funds were also key areas of concern.
“We know it’s important to be able to redevelop villages to keep them current and make them attractive for residents,” Ms Lipscombe said at today’s Property Council of Australia WA Division breakfast.
“We’re looking at a more streamlined process to make significant changes in villages.”
The state government’s proposed exit entitlement deadlines would require retirement village operators to pay a resident their entitlement within 12 months of their departure.
Exit entitlements are a refund of a portion of an outgoing resident’s upfront payment.
Jackson McDonald partner Bianca McGoldrick said this proposed law would apply to all contracts already on the books.
“There is a transition period, so when the law commences there will be 12 months before that section takes effect,” she said.
“Then it will be another 12 months before anyone is entitled to receive a mandatory exit entitlement payment.
“If somebody moves out after the laws start, they would be entitled to the payment.”
Property Council WA executive director Sandra Brewer said the council recognised the proposed reforms of the Retirement Villages Act 1992 would drastically alter the management and operations of retirement villages.
“The details and implementation of new regulations need to be carefully considered to ensure that this important sector will thrive in future,” she said.
Ms Brewer said the council would ensure reforms would not harm retirement village operators, which provided an important role managing aged care communities.
“The reforms follow a lengthy consultation process, during which retirement village operators and industry representatives worked determinedly to meet the intended objectives of the Department of Industry Regulation and Safety,” Ms Brewer told the forum.
Ms Lipscombe said the consultation process had commenced and the Bill would be drafted in the first quarter of 2023 by the state government, with input from the Property Council WA.
“We’re in the process now of seeking approval to draft the Bill and once the government [approves this], it then gives it priority to be drafted,” she said.
