Residents living in retirement villages across South Australia will have increased consumer protections as a result of new laws introduced by the state government into Parliament this week.

The Retirement Villages (Miscellaneous) Amendment Bill 2024 (the Bill) will deliver increased consumer protection for retirement village residents, mandate greater contract transparency, strengthen the role of the regulator and enhance industry standards.

The Bill updates the Retirement Villages Act 2016 after an independent review into the Act and extensive consultation with residents, operators of retirement villages and other key stakeholders.

There are nine key changes that aim to boost resident rights, make contracts clearer and improve dispute resolution. 

The statutory buyback period will be reduced from 18 months to 12 months so that vacating residents and their families can receive their exit entitlements sooner. 

The 12-month buyback period is based on similar provisions in place or being introduced in other Australian jurisdictions and will provide certainty for residents while remaining feasible and achievable for operators.

Where not addressed in the residence contract, there will be capping increases on recurrent charges within operator’s control to the same rate as the Consumer Price Index (CPI), to keep charges affordable. 

For new contracts, a cap will be introduced for the amount a resident or their family pay for capital maintenance when they leave a retirement village to a maximum of 12.5 per cent for prospective residents.

There will be greater transparency of residence contracts and disclosure statements to ensure relevant information including fees and charges are available to prospective residents to support informed decision making. 

Consistent information must be provided about how fees and charges are calculated to enable a prospective resident to compare across villages.

Operators must not unreasonably refuse a resident’s request to make a prescribed alteration including the installation of a functional aid, equipment or infrastructure recommended by a registered health practitioner, such as grab rails or other home modifications. 

Improved dispute resolution processes will include requiring operators to follow their dispute resolution policy and broadening the jurisdiction of the Tribunal.

Enhanced standards for operators and staff will include mandatory training and disqualifying offences. 

There will be additional information gathering powers for the Registrar and expanded capacity to publish relevant information on the Register.

There are currently 520 retirement villages in South Australia, which are home to more than 26,700 residents.

Minister for Health & Wellbeing Chris Picton says as South Australia’s older population and retirement village sector grows, it’s important to ensure the best possible consumer protections for residents.

“Many operators do the right thing, but we need to make sure residents can have confidence in the sector and understand their rights.

“Residents and their loves ones deserve to know what they are signing up for when they live in a retirement village.”

Roger Adamson is President of South Australian Retirement Villages Residents Association (SARVRA).

“SARVRA welcomes the introduction of the Amendment Bill with changes designed to bring increased consumer protections, greater transparency and a fairer deal on exiting a village,” he says.