Page 2672 - Week 07 - Wednesday, 6 June 2012
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off yet. The close alignment of this bill to that of New South Wales will also provide considerable advantage in this conversation, when it happens. This added importance is in addition to concerns about the effectiveness of the current regulatory scheme.
As many within this place will know, retirement villages in the ACT currently operate under the fair trading (retirement villages industry) code of practice 1999. It is apparent to me that the code is unfortunately unable to ensure fair trading in the retirement village industry and has also, in the experience of many residents, proven it is not able to offer sufficient protection to older Canberrans who choose to reside in retirement villages.
Common criticisms of the code include that it fails to provide an adequate framework to guide the operation of retirement villages, that it does not provide efficient or effective processes for supplying appropriate information to prospective residents and current residents of retirement villages and that it contains no workable guide for the resolution of disputes between retirement village operators and residents. This bill seeks to address these concerns, among others, while simultaneously establishing a structure which will facilitate sustainable growth in the retirement village sector for years to come.
This bill deals with many of the key areas of the operation of a retirement village, with a view to providing a comprehensive framework for retirement villages in the ACT. Areas covered by the legislation include representation and information about retirement villages, entry into a retirement village, retirement village residents’ contracts, the management of retirement villages, the financial management, the management of disputes in relation to villages, how residents’ contracts can be terminated, how residents can leave a village, and protection for the ingoing contribution paid by residents.
With respect to the representation about retirement villages, this bill establishes a structure for the distribution of information to prospective residents and current residents. Giving information to prospective residents is essential because it assists them to make informed decisions about whether retirement village living is right for them. This prevents buyers’ remorse, which often manifests in disputes with management and other residents in a retirement village.
Ensuring that current residents have adequate information gives assurance to residents about their village and they are informed about how it operates. They can feel confident it is operating in a way that suits their needs and allows them to participate in the operation of the village, if they choose to do so.
Regarding entry into a retirement village, this bill regulates the payment, acceptance and repayment of waiting list fees. This ensures that residents and management understand how and when waiting list fees are to be used, minimising disputes and facilitating fair trading.
In relation to residents’ contracts, the bedrock of the relationship between the retirement village operator and the retirement village resident, this bill establishes a comprehensive process for making of residents’ contracts in relation to retirement
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