The state government has introduced legislation to provide stronger protections for retirement village residents.
Consumer Affairs Minister Gabrielle Williams introduced the Retirement Villages Amendment Bill into parliament on Tuesday, November 26 following a review into retirement villages which found that the complexity and variety of resident contracts made it difficult for people to compare villages and to understand their obligations and costs.
Under the bill, retirement village contracts will be standardised and include clearer information about entry and exit processes so prospective residents are better informed before signing.
Stronger controls on how exit fees are calculated and a requirement for annual contract checks – so residents always understand their obligations – are also included, while
Consumer Affairs Victoria will be given the power to regulate retirement villages.
“Older Victorians in retirement villages should be confident that their contracts are fair and transparent – so they can focus on enjoying their retirement,” said Ms Williams of why the bill was required.
“These reforms will empower residents to make informed decisions, support them to resolve disputes and promote best practice in retirement village management.”
If the legislation is passed, retirement villages will also be required to prepare emergency management plans and undertake annual evacuation exercises so elderly residents are better protected in the event of emergency situations.
A new alternative dispute resolution service will be set up within the Department of Government Services to help resolve less complex disputes between operators and residents, while more serious disputes will still be referred to VCAT.
