Right now, the Retirement Villages Act works for the companies that own the villages rather than the elderly people living in them
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It’s time retirement villages looked after more than their profits.
Four Pillars
We’re proud to protect the rights of retirement village residents.
We’ve put a plan to the Government to make early repayment possible without residents or their families having to chase their savings, investments or inheritance.
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The Government knows that repayment timeframes are an issue.
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Right now, too many retirees are trapped by delayed payments.
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Our members' experience, coupled with international research, makes a clear case for change.​​
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RVResidents’ Four Pillar Approach aims to guide Government policy with a clear mandate from retirees.
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Each pillar has been developed in consultation with government, village operators and residents.
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A just and fair Exit Repayment Timeframe is not out of reach.
RVResidents’ Four Pillars:
Initial payment: 10% or $50,000 (whichever is greater) within 5 days
When a resident gives notice to leave, the operator should pay 10% of the refundable amount (or at least $50,000) within 5 days. This is important for residents who need money to move into care, be closer to family, or pay for a funeral.
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Full repayment: The rest of the refund within 4 months
The remaining refund should be paid within 4 months after notice to leave, or 3 months from when the unit is vacant, whichever is later. This gives residents a clear timeline for repayment and allows time to arrange bridging finance if needed. The timeframe is also based on industry standards.
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Operator application for extension
If an operator cannot make the full repayment within the set time because they are facing financial difficulties, they can apply for an extension. However, if an extension is granted:
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The operator must pay interest to the resident from the date the unit was vacated, so residents are compensated for the delay.
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The operator must publicly notify the extension in the Retirement Village Register so future residents can make informed decisions.
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Operator application for exemption (if they share capital gains)
If an Operators who share 50% or more of any capital gains (profits from selling the property) with the resident can apply for an exemption from the repayment timeframes. This means they would not have to follow the same repayment rules as other operators, but they also take on the same risk as the resident in waiting for the money.
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The following organisations have all put their support behind this framework.
