Retirement
Queensland government takes on retirement village contracts
The Queensland government has passed legislation which will “see a new era of fairness” in the retirement sector, the Minister for Housing and Public Works has said.
Queensland government takes on retirement village contracts
The Queensland government has passed legislation which will “see a new era of fairness” in the retirement sector, the Minister for Housing and Public Works has said.
Mick de Brenni said the amendments to the sunshine state’s Retirement Village Act passed this week were “landmark reforms”.
“The Palaszczuk government introduced these reforms after consultation with industry and operator groups, consumer advocates, resident representatives and seniors groups, and retirement village residents and manufactured home owners.
“These changes will ensure everyone is treated fairly, giving seniors support when they are planning retirement, and after they retire,” he continued.
The changes include a requirement that all ongoing fees and charges are “clearly declared upfront” and that potential tenants and their families have a minimum 21 days to evaluate retirement village contracts prior to signing.
Additionally, the amendments aim to promote "simplified, standard contracts" and limit the time it takes for the payment of residents' exit entitlements.
Under the new act, village operators and residents will also have to adhere to the newly enforceable behaviour standards.
“The Palaszczuk government has also set aside $1 million over two years to provide advocacy and support through peak groups and resident associations to assist retirement village residents, manufactured home owners and residents of boarding houses," Mr de Brenni said.
“The department will work with five key organisations to confirm how best to invest this funding – Association of Residents of Queensland Retirement Villages (ARQRV), Associated Residential Parks Queensland Inc (ARPQ), the Council on the Ageing (COTA), National Seniors Australia (NSA) and Tenants Queensland (TQ).”
The president of the Association of Residents of Queensland Retirement Villages, Judy Mayfield said the amendments had resulted in "greater clarity".
Further, that clarity "will assist potential residents to more clearly understand the terms and conditions of the agreement they are signing,” Ms Mayfield said.
“It will ensure that staff and village operators are held accountable for any misconduct in the treatment of residents and provide for more clarity to residents on the day-to-day financial management of their village," she continued.
“A wide range of safeguards have been put into place to ensure that residents get a "fair go" and many inequities in the current legislation have now been rectified.”
The legislation received bipartisan support, with opposition housing spokesman Stephen Bennett welcoming the "major reforms", saying they would "protect our most vulnerable residents".
"We have listened to our senior citizens and acted in their best interests to ensure the system is fairer."
Why are retirement village contracts so complex?
According to the senior policy officer at the Consumer Action Law Centre, Katherine Temple, retirement village contracts can be so complex that Australians should seek legal advice before signing them.
Speaking to Nest Egg, she noted that some contracts can be more than 100 pages in length and said: "I would suggest to residents and their families to get legal advice before moving into a retirement village.”
Ms Temple flagged deferred management fees, reinstatement and refurbishment costs as hidden fees to be aware of.
Additionally, Ms Temple said the “other big trap” is understanding that many retirement villages operate under a loan-lease purchasing arrangement. This means that tenants are not actually purchasing property, rather the licence to reside in the village.
“That's not obvious a lot of the time in the sales pitches that people hear that talk about buying into a retirement village. You're not buying a unit, you’re just buying the right to live there and that's very different and so they can impose a lot of restrictions on what you can do while you live in the village.”
Retirement Planning
‘Surprising and disappointing’ lack of innovation in retirement products
Despite an ageing population, the “surprising and disappointing” lack of retirement product information is holding members back, an industry expert has revealed. ...Read more
Retirement Planning
Aged care funding falls short of ‘once-in-a-generation reform’
The “once-in-a-generation” reforms have fallen short of the measures required to fix the neglected sector, industry experts have said. ...Read more
Retirement Planning
Aged care increases announced, but are they enough?
The government has announced more than $17 billion in assistance to the underfunded aged care sector over five years. ...Read more
Retirement Planning
Majority of Australians worry about their retirement
The majority of Australians believe in raising the aged pension as well as lifting the rate of superannuation to 12 per cent as they worry about having enough in retirement, new research has revealed....Read more
Retirement Planning
1 in 2 Aussies feels unsure about their retirement
With the majority of Australians concerned about their financial future, a superannuation provider has shared six tips to help Australians take control of their retirement planning. ...Read more
Retirement Planning
5 tips for a financially healthy retirement
While it is never too early to start planning for your retirement, it is also never too late, with just five simple steps enough to make a big difference to your financial position and ensure you have...Read more
Retirement Planning
PM unveils $452m funding package following ‘harrowing review’
The federal government has announced that it will spend almost half a billion dollars on immediate measures to help overhaul the aged care sector following the release of the aged care royal commissio...Read more
Retirement Planning
Retirement time bomb requires complex thinking
The majority of Australia’s super assets now sit in the hands of retirees and pre-retirees, but many require more nuanced investment strategies to achieve the lifestyle they want in retirement, a ne...Read more
Are you being priced out of the market? Have you got the Tuesday blues? And are you ready for the upcoming super changes?
Listen now
Are property prices set to crash? Should you jump on board the fintok craze? And how to prepare for this tax time
Listen now
Dissecting the budget and what it means for your equities, property and super
Listen now
Has the property market reached its peak; Biden’s climate summit and our sharemarket, and the upcoming budget
Listen now
Retirement Planning
‘Surprising and disappointing’ lack of innovation in retirement products
Despite an ageing population, the “surprising and disappointing” lack of retirement product information is holding members back, an industry expert has revealed. ...Read more
Retirement Planning
Aged care funding falls short of ‘once-in-a-generation reform’
The “once-in-a-generation” reforms have fallen short of the measures required to fix the neglected sector, industry experts have said. ...Read more
Retirement Planning
Aged care increases announced, but are they enough?
The government has announced more than $17 billion in assistance to the underfunded aged care sector over five years. ...Read more
Retirement Planning
Majority of Australians worry about their retirement
The majority of Australians believe in raising the aged pension as well as lifting the rate of superannuation to 12 per cent as they worry about having enough in retirement, new research has revealed....Read more
Retirement Planning
1 in 2 Aussies feels unsure about their retirement
With the majority of Australians concerned about their financial future, a superannuation provider has shared six tips to help Australians take control of their retirement planning. ...Read more
Retirement Planning
5 tips for a financially healthy retirement
While it is never too early to start planning for your retirement, it is also never too late, with just five simple steps enough to make a big difference to your financial position and ensure you have...Read more
Retirement Planning
PM unveils $452m funding package following ‘harrowing review’
The federal government has announced that it will spend almost half a billion dollars on immediate measures to help overhaul the aged care sector following the release of the aged care royal commissio...Read more
Retirement Planning
Retirement time bomb requires complex thinking
The majority of Australia’s super assets now sit in the hands of retirees and pre-retirees, but many require more nuanced investment strategies to achieve the lifestyle they want in retirement, a ne...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
