Retirement Villages Act 2016 and Retirement Villages Regulations 2017 (DHW 2023-24 Annual Report)

Part 2

  1. Annual Report
    1. The Registrar must, on or before 30 September in every year, forward to the Minister a report on his or her work and operations for the preceding financial year.
    2. The Minister must, within 12 sitting days after receiving a report under this section, have copies of the report laid before both Houses of Parliament.

Retirement Villages Unit

The Retirement Villages Act 2016 (the Act) provides a regulatory framework for the operation of retirement villages in South Australia and aims to achieve a balance between the rights and responsibilities of operators and residents. It applies to all retirement village schemes operating in South Australia.

The Office for Ageing Well's Retirement Villages Unit (RV Unit) manages the legislative requirements under the Act and provides information, assistance and education sessions on retirement village matters, including clarifying areas of concern and providing a mediation service to assist with resolving disputes between residents and operators. The RV Unit investigates and assesses complaints and allegations of breaches of the Act and Regulations, with decisions in relation to non-compliance based on the Unit's published Enforcement Framework.

In 2023-24, the activities of the RV Unit included:

  • responding to 682 cases relating to retirement village issues
  • delivering eight presentations and information sessions to residents and interested groups
  • conducting three conflict coaching sessions and dispute resolution information sessions with residents' committees
  • undertaking two conciliations between residents and operators, and
  • providing advice and recommendations to the Minister for Health and Wellbeing.

The majority of queries from residents in 2023-24 related to the formation and operation of committees and their rules and procedures. Requests for advice in relation to how villages should respond to behavioural concerns also remaining a consistent theme. Concerns about recurrent fees and charges increased, as did seeking advice and assistance relating to exit fees and charges.

Growth

As of 30 June 2024, 519 retirement villages were registered across South Australia, comprising 19,165 residences. It is estimated that the number of people living in retirement villages totalled approximately 26,831.

Most retirement villages offer independent living units only. A small section of the sector (40 villages) provides serviced apartment accommodation, which caters to residents requiring additional assistance or support such as the provision of meals, some cleaning, laundry and extra services. 

Information about registered retirement villages in South Australia is available on Data SA website.

In 2023-24, there were no new villages registered and eight villages voluntarily terminated. Under the Act, it is a requirement for all retirement village schemes to be registered within 28 days of the first resident taking up occupation.

Voluntary termination of a retirement village can only occur with Ministerial approval. The four villages terminated in 2023-24 were:

  • North Adelaide: Five villages that were previously registered separately were consolidated into one large village in North Adelaide.
  • Uraidla: Consolidated two villages incorrectly registered into one village.
  • Nuriootpa: Site comprising of 11 units. Site adjacent to hotel sold to be used for motel accommodation. 
  • Freeling: Site comprising 10 units, now used for rental accommodation.   

Exemptions from operation under the Act

The following exemptions, granted under either the previous Retirement Villages Act 1987 or current Act, are currently active:

  • Four under s18: With client consent, no need to hold premium in Trust (Retirement Villages Act 1987).
  • Eleven under s26(1): Ingoing contribution does not have to be held in trust, max deposit $10,000 (Retirement Villages Act 2016).
  • Forty-five under s22(c), 33(6), 34(8), 39, 40(4): Can have consolidated meetings and financial reports for resident funded and independent living resident groups (Retirement Villages Act 2016).
  • 114 under s22(c), 33(6), 34(8), 40(4): Can have consolidated meetings, financial reports & interim financial reports (Retirement Villages Act 2016).
  • Nineteen under s31(3): Operator exempt from assuming responsibility for depreciation (Retirement Villages Act 2016).
  • Four under s57(1): Operator able to rent to persons not eligible under the Act (Retirement Villages Act 2016).

Compliance activity

The Unit investigates and assesses complaints of breaches of the Act and Regulations. In line with the published Enforcement Framework, the Unit adopts an educational approach in the first instance, working with operators to rectify any breach prior to undertaking more punitive enforcement action. No prosecutions were commenced in 2023-24.

In 2023-24, compliance activity included responsive advice and assessment of complaints. A random audit of annual meeting documentation was commenced in June 2024.

Retirement Villages (Miscellaneous) Amendment Bill 2024

The Retirement Villages (Miscellaneous) Amendment Bill 2024 (the Bill) was introduced into Parliament on 21 February 2024, and responds to recommendations made by an independent review to strengthen the operation of the Act.

The Bill amends the Act to increase consumer protections, strengthen the regulatory framework, improve transparency and strengthen standards applying to staff. It was subject to extensive community consultation in 2023, which attracted 373 unique submissions.

Through this extensive engagement, additional amendments were identified to further enhance consumer protection and clarity, including:

  • Alterations – an operator cannot unreasonably refuse a residents’ request to make alterations to the premises where the installation is of a functional aid to assist the resident to remain living independently. This has been a source of frustration for some residents and will better enable residents to age in place.
  • Reinstatement/renovation – introduction of a requirement that the residence contract must include details about who is responsible for the reinstatement of the residence, including fair wear and tear upon exit and who is responsible for the costs of any renovation work.
  • Statutory repayment period – Reducing the statutory repayment period from 18 months to 12 months (plus 30 days) so that vacating residents and their families can receive their exit entitlements sooner.
  • Capital fund contributions – Introduction of a cap on deductions from exit entitlements, to be no more than 1 per cent per year of current market value to a maximum of 12.5 per cent, for contracts entered into after commencement of the new Act. This amendment will apply prospectively rather than retrospectively as it was identified during the public consultation that a retrospective cap on capital fund contributions had the potential to significantly and adversely impact some villages.

The Bill will progress through the Parliamentary processes in 2024-25, following which consultation will be undertaken on Regulations to support the operation of the Act.

Retirement Village Residents Advocacy Program

Since 2014, Office for Ageing Well has funded the Aged Rights Advocacy Service (ARAS) to provide an advocacy service to residents. The Retirement Village Residents Advocacy Program is a valuable resource to residents of retirement villages, providing advocacy support, information and advice on their rights. 

The predominant contact with the Retirement Village Residents Advocacy Program is via telephone, with 72 per cent of contacts made this way. Fifty-six per cent were calls from metropolitan areas, and 17 per cent were from rural and remote areas, with the balance not disclosing location details.