March 2025
Welcome to the third issue of Consumer Protection’s bulletin for retirement villages residents, focusing on implementation of changes made to the Retirement Villages Act 1992 (WA) (the RV Act) by the Retirement Villages (Amendment) Act 2024 (WA).
Development of Retirement Villages Regulations 2025
Consumer Protection is currently developing the new regulations to support changes to the RV Act.
This bulletin provides you with a summary of proposed regulations to support the new provisions on:
- payment of exit entitlements and completion of buy-backs;
- requests for daily accommodation payments for aged care from exit entitlements;
- information to be included in renovation plans to be agreed between operators and departing residents; and
- information to be included in property condition reports to be prepared when residents enter and leave residential premises in retirement villages.
It is important to note that these changes are expected to come into operation in late 2025 when the new Retirement Villages Regulations 2025 are ready.
1. Exit entitlement statements
The RV Act will require operators to pay an exit entitlement or complete a buyback for strata-titled properties no later than 12 months after the day on which the resident has permanently vacated the residential premises. This will ensure that residents who permanently depart a village have certainty as to the latest date any exit payments can be received, providing funds that may be needed for alternative accommodation or aged care.
The RV Act will also require operators, at the same time as paying the exit entitlement, to give residents a statement containing information about how the exit entitlement has been calculated.
The proposed regulations will require the exit entitlement statement to include the following information:
- the amount of any ingoing contribution paid by the resident;
- date of commencement of residency, date of termination of the right to reside and the period of residency;
- any exit fees payable by the permanently departing resident;
- any recurrent charges payable after departure and any contributions to the capital maintenance fund or to a capital replacement fund;
- any other amounts payable under a respective village contract;
- total capital gain or loss on the resale of the interest (if applicable) and the share payable by or to the permanently departing resident;
- total exit entitlement due after all deductions; and
- how and when the exit entitlement will be paid.
2. Extension of time to pay exit entitlements and buybacks
The Act allows an operator to apply to the Commissioner to extend the period to pay the resident’s exit entitlement or complete a buyback by up to 12 months in limited circumstances. Under the incoming provisions of the RV Act, the Commissioner may grant an extension and impose conditions on the extension.
Proposed regulations will require the operator to apply to the Commissioner at least 60 days before the day that the operator is required to make the exit entitlement or complete a buyback. This proposed regulation is intended to ensure residents are made aware, within a reasonable time, that payments may be delayed.
3. Daily accommodation payments for aged care from exit entitlements
To facilitate transition of residents from retirement villages into aged care, the RV Act will allow residents to request that a portion of unpaid exit entitlements be used to pay daily accommodation payments for aged care.
The proposed regulations will allow these payments to be made if:
(i) the resident has permanently vacated the retirement village premises; and
(ii) is entitled to receive an exit entitlement; and
(iii) that resident has entered an aged care facility or has had an application to enter an aged care facility accepted.
Further, proposed regulations will:
- enable residents to request their exit entitlement be used to cover daily accommodation payments using an approved form;
- require operators to pay daily accommodation payments before or within 60 days of the resident entering aged care;
- provide that an operator does not need to make daily accommodation payments if the operator has already paid 85 per cent or more of the estimated entitlement to the resident; and
- require operators to maintain records of daily accommodation payments they have made.
4. Renovations
Under the RV Act, renovation of a residential premises will mean improvement of residential premises in excess of what is required for reinstatement. In the future, operators can only require residents to pay for renovation if, among other things, there is agreement on a renovation plan.
Proposed regulations will require a renovation plan to be prepared in the approved form and contain specific information including:
- description and quote(s) for the proposed renovation work; and
- when the renovation is expected to commence and be completed; and
- the likely impact of the proposed renovation works on the value of the residential premises; and
- the date the resident agreed to the renovation plan.
5. Property Condition Report
Property condition reports will ensure that residents and operators agree on the state of the residential premises when the resident moves in and out of the premises.
Proposed regulations will require the entry property condition report to include information on the condition of each room, the location and age of air conditioning systems, solar or water tanks, and specify the items that the operator and the resident are each responsible for maintaining.
Similarly proposed regulations will require the exit property condition report to include information about the condition of each room and anything included with the premises under the residence contract, details about any reinstatement work to be carried out and any renovation work that the departing resident agrees to carry out.
How to engage in consultation – residents’ survey
Consumer Protection is interested in your views on proposed regulations applying to exit entitlements and buybacks, renovation plans and property condition reports. Please complete this short survey which should take no more than 8 minutes to complete.
Retirement village resident consultation survey
If you would like to provide feedback on the proposed regulations discussed in this bulletin, please email consultations@demirs.wa.gov.au.
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