Laws to improve consumer protection in retirement villages passed

The Retirement Villages Amendment Bill 2024 introduces new protections for residents, particularly around exit entitlements, standardised fees, and pre-contractual disclosures. 

It mandates plain-English contracts, annual contract checks and enhanced consumer information to help prospective residents make informed decisions.

It also establishes a mandatory Retirement Villages Code of Practice and a framework for managing operator exemptions, while also requiring emergency and evacuation plans in all villages to enhance resident safety.

A number of provisions in the bill had their origins in the 2017 Parliamentary inquiry into the retirement housing sector completed during the 58th Parliament.

In her second reading speech Gabrielle Williams, Minister for Government Services and Consumer Affairs, said one in four Victorians will be aged 60 years and over by 2046.

‘The makeup of residents entering retirement villages is also changing. Victorians are entering villages later in life, with an average entry age of 76 years old when, and the average length of tenure in a retirement village is 8.4 years,’ she said.

‘Retirement villages offer a long-term accommodation option for older Victorians to remain independent and support residents to age well by delivering safe and secure accommodation and social inclusion, as well as access to recreational activities, amenities, and personal supports.’

Member for Southern Metropolitan David Davis in his speech said that, while the opposition does not oppose the bill, the legislation was not comprehensive enough, addresses only part of the challenges facing retirement villages, and has taken too long to reach the Parliament.

“ ‘Retirement villages offer a long-term accommodation option for older Victorians to remain independent and support residents to age well.’ ”

Gabrielle Williams, Minister for Government Services

‘This bill hardly scratches the sides of a lot of the issues that retirement villages and residents in retirement villages face,’ he said.

Member for Southern Metropolitan, John Berger noted that with Victorians now living longer, the updated legislation was crucial to meet modern needs and expectations, ensuring residents receive dignified care and strong consumer protections in retirement.

‘We want these hardworking Australians to retire with dignity and with the care that they deserve and need,’ he said.

“ 'This bill hardly scratches the sides of a lot of the issues that retirement villages and residents in retirement villages face.' ”

David Davis, Meber for Southern Metropolitan

Aiv Puglielli, Member for North-Eastern Metropolitan, said the bill was the result of years of tireless advocacy by residents and community groups who fought for fairness, transparency, and better treatment in retirement villages.

‘They have been firm in their calls to stop the dodgy, dishonest behaviour that we have seen from many operators in the past, who have preyed on people for their own advantage,’ he said.

He said while the bill was a positive step, it did not go far enough.

He reiterated the Greens’ ongoing support for the establishment of a retirement housing ombudsman to tackle systemic issues and provide stronger accountability for misconduct in the sector, which the current dispute resolution service may lack the capacity to address.

The full debate can be accessed via Hansard.