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Tuesday, December 10, 2024

New laws to protect aged care village residents

The South Australian Government says retirement village residents will have enhanced protections as a result of new laws passing both houses of State Parliament last night.

The State Government’s retirement villages reforms will deliver increased protections for retirement village residents, mandate greater contract transparency, strengthen the role of the regulator and improve industry standards.

“Our new laws will give older South Australians living in retirement villages the protections and peace of mind they deserve. These additional safeguards are particularly important as our ageing population continues to grow,” said Minister for Health and Wellbeing, Chris Picton.

“Most operators do the right thing, but we need to make sure residents can have confidence in the sector and get the balance right with improved protections.

“These changes will give greater clarity for older South Australians and their loved ones around what they are signing up for when they move into a retirement village, better protections while they are in a village and improved rights when they wish to leave a village,” he said.

The laws reform the Retirement Villages Act 2016, informed by an independent review and extensive consultation with village residents, operators of retirement villages and other key stakeholders.

The key law reforms include:

  • Reducing the statutory buyback period from 18 months to 12 months so that vacating residents and their families can receive their exit entitlements sooner.
  • Capping increases on recurrent charges within operator’s control to the same rate as the Consumer Price Index (when not already addressed in a resident’s contract), to keep charges affordable for residents.
  • Introducing a cap for the amount a resident or their family pays for capital maintenance when they leave a retirement village to a maximum of 12.5 per cent.
  • 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 about how fees and charges are calculated to enable a prospective resident to compare across villages.
  • Ensuring that 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.
  • Providing for improved dispute resolution processes including requiring operators to follow their dispute resolution policy and broadening the jurisdiction of the Tribunal.
  • Enhanced standards for operators and staff, including mandatory training and disqualifying offences.
  • Additional information gathering powers for the Registrar and expanded capacity to publish relevant information on the Register.

The new laws were developed following extensive community consultation with 13 information sessions attended by more than 420 residents, operators, and other interested stakeholders, resulting in 373 submissions.

Following the passage of the law reforms, the ongoing operation of retirement villages will be managed by the Minister for Seniors and Ageing Well, Nat Cook, and the Office for Ageing Well, including the development of updated regulations.

“With an ageing population in South Australia, retirement villages are more important than ever,” said Minister Cook.

“There are currently more than 26,000 people living in retirement villages, across more than 19,000 units – making them a critical part of our state’s housing response for older people.

“This legislation will deliver more transparency and stronger consumer protections.”

There are currently more than 500 retirement villages in South Australia which are home to more than 26,800 residents.

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