Safeguards strengthened for retirement village residents

SA-BEST amendments to government reforms to the Retirement Villages Act 2016 passed the parliament on Tuesday night with overwhelming support.

The amendments will ensure vulnerable members of the community will be further safeguarded, with explicit guidance given to the Supreme Court when dealing with applications for the termination or partial termination of retirement villages schemes.

Earlier this year SA-BEST MLC Connie Bonaros was contacted by Bellara Village resident Linda Knock following the systematic winding down of services and facilities by the village owner with the clear intent to pivot the use of at least part of the land for unrelated commercial purposes.

While that application has since been withdrawn, Linda’s case, and a decision by the Supreme Court in the case of Keyton Holdings Pty Ltd earlier this year, highlighted clear deficiencies in the Act which have now been addressed.

The SA-BEST amendments will give the Supreme Court clear guidance that it must turn its mind to certain factors when making a decision to terminate. They include:

• The views of residents of the retirement village;

• Whether the proposed termination would likely to benefit residents or result in detriment to residents;

• The affect, if any, on the capital value of residences;

• Any breach of residence contracts; and

• The conduct of the operator and resident.

Quotes attributable to the Hon. Connie Bonaros MLC

“Thanks to Linda we have made a good bill better by further safeguarding and strengthening the rights of residents of retirement villages.

‘Nobody deserves to have the promise of a comfortable retirement taken away from them. Linda’s case is a prime example of how one person’s fierce advocacy can have a positive and lasting impact on others who may walk in her shoes in years to come.

Quotes attributable to Linda Knock

“I wanted to prevent other retirement village residents from going through what we’ve been through. Residents invest their life savings into a retirement village, and they need to know that what they were promised and encouraged to buy in isn’t going to be wiped out for profiteering purposes.

“Once established, a retirement village should remain a retirement village, and the only changes made should enhance residents’ lives, rather than demoralise them. I was thrilled Connie’s amendments went through – they greatly enhanced the bill.

“I do think there is still a long way to go before the power imbalance between owners and residents is equalised. This is a good step in the right direction.