11 July, 2019
Reforms supporting residents leaving a retirement village
NSW Fair Trading wants to hear from retirement village residents and their families, operators and anyone involved with the NSW retirement village sector about reforms concerning residents leaving a retirement village.
What’s this about?
Currently, the majority of NSW retirement village residents who leave a village are subject to ongoing general service fees and other charges. These costs have to be paid by the resident until their premises is sold and a new resident takes up the accommodation.
Outgoing residents may also face uncertainty and financial stress regarding payment of their exit entitlements. Under the current laws, this payment can be delayed until their premises is sold and a new resident moves in.
In response, the NSW Government has stated its intention to introduce the following:
- a 42-day cap on the amount of time general service fees and charges must be paid by a resident
- requiring payment of exit entitlements to former retirement village residents within 6 months for residents leaving villages in metropolitan areas, and 12 months for residents whose villages are in regional NSW.
These reforms address issues highlighted in the 2017 Inquiry into the NSW retirement village sector, including concerns about financial constraints on residents transitioning to aged care.
The Government is seeking feedback on how these reforms should be implemented.
Have your say
Read the discussion paper on our consultation page and have your say by 5pm Friday 16th August 2019.
You can also read the media release.