Back to list

Exit Entitlements & Recurrent Charges Cap

Monday 23, Dec 2019

The President, Jim Gibbons, and the RVRA Board became aware that the Government were experiencing significant difficulty reconciling their election promise (made to residents in retirement villages) with the concerns expressed by operators on their ability to meet the financial obligations placed on them under the proposed legislation.

The Government received 700 submissions in response to the Discussion Paper. A significant number were from residents voicing opposition to the suggestion the Government might consider a “Grandfathering Provision”. In other words, the new legislation would only apply to new contracts and thus some 66,000 existing residents would be disenfranchised.

On 2 December 2019 the President of the RVRA wrote to The Hon. Kevin Anderson, Minister for Better Regulation and Innovation (The Minister) setting out an alternative approach with the following benefits:

  • The Government would keep its election promise;
  • The operators would gain the flexibility required to meet their financial obligations; and
  • Residents would approach their exit from a village with certainty as to: 
    • the amount of their entitlement; and
    • the date of settlement.

At the invitation of the Government, the President and Vice-President of the RVRA met with the government policy makers to discuss the RVRA’s alternative approach. The meeting was very positive and the alternative approach was favourably received.

A copy of the letter to The Minister and a copy setting out the alternative approach can be viewed HERE.