Allan Government Victorian Retirement Village Act updates commence May 1, with big changes ahead for retirees.
Victorian retirement villages will get their biggest shake up in decades as a raft of regulatory changes take force for the sector today.
But it’s already prompted a warning from the industry who have said while they will “hit the ground running” they’re expecting a “lot of lumps and bumps” as a result of limited notice on the changes.
It comes at the same time as the launch of a new dispute resolution service, VicAssist, intended to give retired residents an equal footing to operators.
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It will provide free assistance for resolving issues relating to noise, carparking, fees, repairs and maintenance.
Under Allan government updates to the Retirement Villages Act commencing from May 1, providers will be banned from undisclosed fees and costs and will have to give prospective residents an information statement that covers the costs of entering, living in and leaving a village.
It will also need to set out services and facilities as well as how the site operates, and mandate simpler contracts.
There will now be a seven-day cooling off period for any contracts signed, operators will be required to provide condition reports before residents move in and those signing up must be offered the same share of any capital gains from the property as they are for any capital losses.
New Consumer Affairs Minister Paul Edbrooke believes the changes give retirement village residents protections they deserve. Picture: NewsWire/Ian Currie.
The addition of fly screens, picture hooks, shelves and security systems will also be allowed in all homes, so long as they don’t interfere with other residents’ privacy — and operators will not be able to set limits on keeping pets in homes.
Yesterday new Consumer Affairs Minister Paul Edbrooke said the changes would not only give retirement village residents more certainty, but also help save them money on dispute resolution.
“For too long, retirement village residents didn’t enjoy the protections they deserved – that changes today,” Mr Edbrooke said.
“Resolving a dispute with your retirement village shouldn’t cost you thousands of dollars. Now it doesn’t – with VicAssist it’s free.”
Victoria’s retirement villages have been through significant change in recent years, with the rise of vertical villages like The Grace, Albert Park.
Industry groups had expressed concern over the timeline given to prepare for the commencement of the new rules in March this year, when they were given a late stage draft less than two months before the start date.
Yesterday, Retirement Living Council boss Daniel Gannon said the changes would mean sales teams for retirement villages could now “hit the ground running … after weeks of uncertainty”.
“It won’t be smooth tarmac – expect a lot of lumps and bumps along the way,” Mr Gannon said.
“The new regulations are live, and unfortunately, today will be the first opportunity operators and residents will get to see many of the new forms they need to comply with because they weren’t available ahead of time.”
He noted that many operators had indicated they had paused sales to new residents as they waited for the May 1 deadline and finalised forms they would need to use that were not provided ahead of time.
Retirement Living Council executive director Daniel Gannon says the industry will face a bumpy start to the new rules and regulations.
“This has been a frustrating process, and residents have felt it too,” Mr Gannon said.
“The focus now is on getting back up to speed quickly, safely and with clarity.”
Residents of Retirement Villages Victoria Helen Betros said the organisation was very pleased with a number of the changes, particularly those relating to deficits and capital maintenance funds.
However, they were disappointed other parts would not apply retroactively to contracts signed prior to May 1 — especially with relation to the reinstatement of homes at the end of a residents’ time in them.
Ms Betros said in many instances providers pushed for a full renovation, rather than simply reinstating a home — at the cost of the former resident.
“Our view is that if it’s appropriate to have it going forward, it should apply to those already in place,” she said.
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