Retirement Village Legislative Reforms Essential

Long time activist for reforms to the Victorian Retirement Village Act 1986 Mr. Charles Adams says the No.1 reform required is a legislative change to the current requirement that to enter a retirement village you must pay an in-going contribution and that contribution cannot be classified as rent.

In a recent letter to the Premier Mr. Adams wrote:-


"Dear Premier,

For the last 31 years the Retirement Village Act 1986 has been
disadvantaging "Retirement Village" lessees. Don't you think that is
long enough?

This is because the RV and donation definitions, supplied back in 1986
by the developers, in their own interests, by making the contract model
raise and defer, and thereby obscure, the cost until after termination.
This may be legal, but is certainly not the stated purpose of the
Victorian Act. The LSIC 150 page report on this subject omitted the
three, in 760 submissions, that illustrated this point.

US village contracts are residential tenancy, with secure tenure, as the
critical element necessary to provide security for retiree lessees.

Changing those two definitions to rationally allow transparent costing
and should make for a major increase in retiree lessees into retirement
villages for the benefit of the whole community. It would reduce the
demand for more infrastructure. The developers will howl, but the
community will benefit.

Instead of 5% of the demographic going into retirement villages,
Victoria could expect 15%, as in the US."

The matter has been referred to Consumer Affairs Victoria, a body heavily criticised by retirement village residents in their submissions to the State Government enquiry into retirement living. https://www.parliament.vic.gov.au/lsic/article/2970