Page 3267 - Week 08 - Wednesday, 22 August 2012
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Some retirement village residents enter their retirement village by paying a substantial ongoing contribution as a “loan” under a loan-licence agreement or by purchasing a unit in a unit titled village. This often necessitates the sale of the resident’s family home to fund the loan or purchase. Some residents pay a more modest ingoing contribution or, infrequently, obtain their right to live in their village under a standard residential tenancy agreement. In any case, residents often move into retirement villages because of the security of tenure offered by them, and it makes sense that there is legislation protecting the rights of residents and their existing entitlements under their contracts.
The bill codifies and builds on the existing consumer protections for residents of retirement villages currently provided for in the code of practice. The bill also introduces some new important protections for residents, including the creation of a statutory charge over village land to secure residents’ exit entitlements, specific rules surrounding the closure of villages and rules about proposed increases to recurrent charges. The bill also provides a legislative framework for the day-to-day management of retirement villages by operators, in a way which is consistent with sound management practice.
I would like to commend Ms Porter on her decision to introduce a bill based on the New South Wales act, an act that the government views as striking an appropriate balance between the rights of residents and operators. It is also an act which is more applicable to the diverse ACT retirement village market, with its mix of loan-licence agreements, sublease agreements, residential tenancy agreements and unit titled developments.
I would also like to commend Ms Porter on her extensive community consultations in the development of this bill as well as her ongoing involvement and keen interest in issues affecting older Canberrans. This is evidenced by the initiative she has taken, as a private member of this place, to table a paper on the issue of retirement villages in the ACT titled Retirement villages in the ACT: a discussion paper. Members will also remember that Ms Porter took the initiative to address concerns raised with her by a number of concerned constituents, through her tabling of her earlier draft bill in 2010 and the introduction of the earlier retirement villages bill in 2011.
As Ms Porter explained on the introduction of this bill, the introduction of her 2011 bill acted as a catalyst for industry and resident representatives to clearly articulate their views and concerns. These representatives approached Ms Porter’s office, and my own, with the consistent feedback that a New South Wales model would be a preferable approach. On the basis of these discussions, it is to Ms Porter’s credit that she made the decision to table a new bill which is based on that legislation.
Industry and resident representatives, as well as individual operators and residents, have provided a high level of information and advice to the government in formulating our response to this bill. This has included giving advice about the content of appropriate regulations to ensure that existing arrangements can transition with respect to the requirements of the bill. These stakeholders have also offered to provide further advice to my officials about these and other matters relating to the commencement of the scheme, should this bill be adopted today.
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