At the retirement industry conference in March this year, Minister for Innovation and Better Regulation Matt Kean (pictured) stated he was determined to bring in new regulations for the retirement village sector with NSW to lead the rest of the country. And it appears that he has delivered on that promise.
Following an extensive inquiry into the sector last year by Kathryn Greiner AO, prompted by a highly-publicised investigation into village fees and contracts by the ABC and Fairfax Media, NSW will introduce a mandatory code of conduct and a range of reforms.
Mr Kean said the Government welcomed the “Greiner Report”, and will take immediate action to implement the majority of the recommendations. “We strongly support the inquiry’s findings, and believe that our response will go a long way in putting the power back in the hands of retirees, and their families,” Mr Kean said.
“These reforms will put consumers first, and see greater protections for residents through increased transparency, improved dispute resolution, and more certainty around costs.”
The package of reforms include:
• implementing a mandatory Code of Conduct to set the standard for retirement village operators and to stamp out unscrupulous behaviour;
• introducing strong transparency measures to improve disclosure of key contract terms, exit fees, and to drive greater competition in the sector;
• improved dispute resolution services for residents; and
• measures to help clarify responsibilities with respect to ongoing maintenance costs.
The NSW Government will also appoint a dedicated Retirement Village Ambassador to advocate on behalf of residents, and report back on key issues.
In addition, the Government will consult with the sector on the potential for further reforms to improve the professionalism of operators and increase certainty of costs.
Minister for Ageing Tanya Davies said there are already more than 55,000 residents living in NSW retirement villages however, this number will continue to grow significantly due to the ageing population.
“We want residents to be able to live independent and fulfilling lives in their chosen retirement village, which is why it’s incredibly important we improve our laws to increase confidence in the sector,” Mrs Davies said.
