Gurmesh Singh MP

EASING BILL SHOCK FOR RETIREMENT VILLAGE RESIDENTS

The next stage of the NSW Government’s comprehensive retirement village reforms came into effect on 1 July, reducing ‘bill shock’ for residents by requiring village operators to be upfront with the costs of managing assets.

Member for Coffs Harbour Gurmesh Singh welcomes the reforms to the Retirement Villages Act 1999, which were introduced to increase accountability and transparency in the retirement village sector by seeking to reduce costs and uncertainty for residents.

“The NSW Government has embarked on these revolutionary reforms to make life easier and fairer for residents,” Mr Singh said.

“These reforms will protect residents in retirement villages, with retirement village operators being accountable for the costs of managing assets, including fixtures and fittings, so there will be no hidden surprises for residents.”

From 1 July 2021, village operators are required to:

  • prepare and keep up to date a 10-year asset management plan for the village’s major items of capital (including items shared with other villages or aged care businesses),
  • record certain information in the asset management plan,
  • prepare a three-year report for the maintenance of major items of capital (extracted from the asset management plan), and include it in the annual budget process, and
  • make the asset management plan available for all current and prospective residents at reasonable times.

Minister for Better Regulation and Innovation Kevin Anderson said these reforms are in addition to the changes introduced earlier this year, including improving access to exit entitlements, creating a new mechanism to support residents moving to aged care, and placing a 42-day cap on the payment of recurrent charges for general services.

For more information on retirement village reforms visit the NSW Fair Trading website here: Changes to retirement village laws | NSW Fair Trading