Criticism of Recommendation 10 in LSIC Enquiry

The Victorian Parliament’s Legal and Social Issues Committee Recommendation 10: That the Victorian Government make provisions to allow retirement village operators to pay either the refundable accommodation deposit (RAD) or daily accommodation payment (DAP) for residents entering aged care until the resident’s unit is sold received some criticism at the Retirement Housing Forum held in Melbourne on Monday May 1st. As part of their entry payment to a retirement village residents provide to the operator an amount of money on an interest free loan basis thus reducing if not eliminating the capital borrowing requirements of a village owner/operator. Retirement village residents have expressed the view that as operators are merely paying back money belonging to the resident, any prudent and competent owner/operator should be capable of making sufficient capital provisions to meet this occurrence. The adoption by the Victorian Government of this recommendation would in the words of some retirement village residents simply allow less efficient and less prudent operators to exist in the marketplace at the ultimate cost of consumers.

The Victorian State Government is yet to respond to the LSIC recommendations.

Issues and concepts around Retirement Villages are presented at http://www.retvill.net/