Review of retirement villages law

A comprehensive review of laws governing retirement villages in Western Australia has made more than 100 recommendations for change, to better protect the interests of residents and improve the regulation of the retirement village industry.

The final report of the review, tabled in State Parliament yesterday by Commerce Minister Bill Marmion, is the result of extensive research and widespread consultation with both industry and residents.

"A series of community feedback sessions was held in metropolitan and regional areas and meetings were held with resident and industry representative groups to gauge general feedback.  About 350 written submissions were received," Mr Marmion said.

The Minister said many retirement villages operated effectively and residents enjoyed the lifestyle, security and strong sense of community.

The review had, however, identified some common concerns for residents and identified ways to improve the laws under which retirement villages operated.

"The recommendations focus on the need for greater transparency and accountability by village operators in the management of retirement villages and also look at greater protections for residents' financial interests," Mr Marmion said.

"Following consideration of the report recommendations by cabinet, the State Government will, in the new year, introduce a range of measures into Parliament aimed at ensuring a fair and efficient retirement village sector."

Key recommendations in the report included:

• establishment of a seniors' housing information service to provide prospective and current residents with independent information and support on housing matters relevant to seniors
• power to remove 'non-performing' managers of retirement villages and appoint an administrator to manage a village where the wellbeing or financial security of residents is at risk.  This power would be exercised in extreme cases and as a last resort.
• new criteria to prevent people with previous convictions of violence, sexual offences, dishonesty, fraud and bankruptcy from operating or managing a retirement village
• more time for prospective residents to consider pre-contractual disclosure information and a longer time for 'cooling off' from contracts
• mandatory auditing of retirement village operating accounts and special funds, unless residents vote each year not to require an audit
• strengthening the effectiveness of residents' committees through educational materials
• giving residents the right to appeal to the State Administrative Tribunal against excessive or unwarranted increases in recurring charges and contributions to reserve funds
• strengthening the powers of the Commissioner for Consumer Protection in relation to compliance with the law, including a power to seek enforceable undertakings and streamlined procedures for taking a matter to court  
• modifying and improving the Retirement Villages Code.  

"It is the clear intention of these proposed changes to ensure that the retirement villages sector remains viable and attractive to investment while protecting and promoting the interests of village residents," the Minister said.

"I had the opportunity to meet with members of the Karrinyup Lakes Retirement Village after tabling the report and assured them the recommendations would form the basis for amendments to the Retirement Villages Act 1992, which the Government aims to introduce into State Parliament as early as possible."

More information is available at http://www.commerce.wa.gov.au