The WA government has enacted new reforms aimed to improve life in retirement villages across the state and to make it easier for people to move from villages into aged care.
These changes are expected to improve the welfare of all residents. The reform package will take effect over the course of two years in five stages, providing time for operators and residents to adjust to the new legislation.
The first stage, introduced on September 1, introduced regulations that operators of villages must follow. These include mandatory exit entitlement payouts, consulting with residents on annual budgets and the requirement of approval for termination plans, in case a village shuts down.
Many senior Australians are set to be affected by the reforms. According to the WA government, there are 25,000 residents in retirement villages across WA and these reforms come after years of frustration, from residents and their families, who have struggled with complex contracts and unexpected costs.
Consumer Protection’s Retirement Village Reforms Project Manager Christine Mullins said: “The big reason for these reforms was to address issues where residents were waiting quite some time, sometimes three years, to receive their exit entitlement.”
Another key requirement being introduced is flexibility in how retirement village exit payouts are released. When people move from retirement villages to aged care facilities they need to pay what is called Daily Accommodation Payments, which are higher if they are not paid as a lump sum.
Ms Mullins said: “Eligible residents can now request that part of their exit entitlement is paid towards their daily accommodation payments for their aged care, making it easier for people to transition from retirement village living into aged care.”
This takes a huge financial burden off residents and their families, who were left filling the gap between receiving the village exit payments and having to pay to enter aged care.
Age care homes differ from retirement villages in that they offer round-the-clock services for residents who can no longer live independently.
Caroline Jankovic expressed her frustration with the financial and learning aspect of moving her mother into an age care home.
“It was a very big learning curve. The age care system is a very difficult system to navigate and it’s very expensive. We had to get a really big deposit in the first place to even put her there, so that was quite challenging.”
The remaining stages of the reforms will further strengthen financial protections and provide improved transparency between residents and operators.
The next stage of the reforms will come into effect on December 1. They will include requirements to notify residents about modifications of villages and the introduction of property condition reports.