News | Apr 9, 2025
Welcome to the third issue of Consumer Protection’s bulletin for operators on the implementation of theRetirement Villages Amendment Act 2024 and development of the Retirement Villages Regulations 2025.
Consultation on new Regulations continues
Consumer Protection is continuing to consult with stakeholders on new regulations to support the significant changes to the Retirement Villages Act 1992 (WA) (the RV Act) by the 2024 Amendment Act. This bulletin provides an overview of the proposed regulations to support new provisions in the RV Act on:
- payment of exit entitlements and completion of buy-backs;
- daily accommodation payments for aged care; and,
- information to be included in renovation plans and entry and exit property condition reports.
The changes to the RV Act on these matters will come into operation late in 2025 when the new Retirement Villages Regulations 2025 are in place.
1. Exit entitlement statements
One of the important changes to the RV Act is requiring operators to pay exit entitlements to holders of a lease-for-life, and complete buybacks of strata-titled properties, within 12 months of a resident’s departure. These provisions ensure that residents who permanently depart a village have certainty as to the latest date any exit payments can be received, often providing much needed funds to move into alternative accommodation or aged care.
The Act will require operators to provide a resident, at the same time as paying their exit entitlement, a statement containing information on how the exit entitlement has been calculated. Regulations will prescribe the information to be contained in an exit entitlement statement. It is proposed that an exit entitlement statement contain information on:
- ingoing contribution paid by the resident;
- any exit fees payable by the 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 departing resident; and
- the total exit entitlement payment due after all deductions.
To provide transparency to the operator and departing resident, it is also proposed that the regulations require an exit entitlement statement include details on:
- how and when the exit payment will be paid; and
- the date of commencement of residency and the date of termination of the right to reside.
2. Extension of time to pay exit entitlements and completion of buybacks
The RV Act will allow an operator to apply to the Commissioner for Consumer Protection (Commissioner) to extend by up to 12 months the period to pay an exit entitlement or complete a buyback in specified circumstances. It is proposed that regulations will require an operator seeking an extension to apply to the Commissioner at least 60 days before the day that the operator is required to pay the exit entitlement or complete a buyback.
3. Payment of daily accommodation payments for aged care from exit entitlements
To facilitate the transition of residents from retirement villages into aged care, the RV Act will enable a portion of unpaid exit entitlements to be used for the purpose of funding a resident’s residence, or proposed residence, in an aged care facility.
New regulations are required to enable a resident who has permanently vacated a retirement village to request that an operator pay all or part of the exit entitlement due to the resident to an aged care provider to cover the cost of daily accommodation payments (DAPs) in a care facility.
The proposed regulations will:
- require a request from the resident to an operator for DAPs to be made in an approved form and include information about the amount or amounts of the DAPs;
- provide that an operator does not need to make DAPs, if the operator has already paid 85 per cent or more of the estimated entitlement to the resident;
- require operators to pay DAPs before or within 60 days of the resident entering aged care;
- require operators to maintain a record of DAPs that they have made in respect of requests made under the proposed regulations; and
- enable operators to make applications to the Commissioner for an exemption, or extension of time, to make DAPs if exceptional circumstances justify such a determination.
4. Renovations
The Act will provide that operators can only require a departing resident to pay for renovation of residential premises if, among other things, the operator and resident agree on a renovation plan.
Proposed regulations will require a renovation plan to be in the approved form and contain specific information including:
- a description of the intended renovation;
- any quote(s) obtained for the proposed renovation work;
- the dates the renovation is expected to commence and be completed;
- the likely impact of the proposed renovation on the value of the premises; and
- date the resident agreed to the renovation plan.
Information to be prescribed for inclusion in a renovation plan is intended to provide transparency to both the operator and departing residents about the justification for, impact and cost of a renovation.
5. Property Condition Reports
Operators will be required, within 7 days after a resident enters into occupation of premises in a village, to prepare a report describing the condition of the premises and provide 2 copies of that report for the resident’s agreement (the entry property condition report).
Similarly, when a resident permanently vacates the premises, the operator must inspect the property and prepare a report (the exit property condition report).
Proposed regulations will set the information to be included in each type of report.
The entry property condition report will include information on the condition of each room, the location and age of air conditioning systems, solar or water tanks, and list items that the resident is responsible for maintaining.
The exit property condition report will include the condition of each room and anything included with the premises under the residence contract, details about any reinstatement to be carried out and any renovation work that the former resident agrees to carry out.
How to engage in consultation
To provide feedback on the proposed regulations discussed in this bulletin, please email consultations@demirs.wa.gov.au.
Residents in your retirement village are encouraged to subscribe to retirement village reform updates so they can receive information from Consumer Protection about implementation of these reforms. Please share this link with your residents.
Otherwise, general enquiries to Consumer Protection can be directed by email to consumer@demirs.wa.gov.au or by phone on 1300 30 40 54.ries to Consumer Protection can be directed by email to consumer@demirs.wa.gov.au or by phone on 1300 30 40 54.
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