The Bill includes substantial amendments to the Retirement Villages Act 1999 (Qld) (RV Act) with the stated objectives of increasing transparency in the relationships between operators and residents and providing greater security and confidence to residents, balanced with industry viability. The amendments are also aimed at addressing resident and consumer advocate concerns raised recently in the media.

The key amendments to the RV Act include:

• a simplified two stage pre-contractual disclosure process that replaces the current ‘public information document’ with a ‘village comparison document’ and a ‘prospective costs document’ to be given to a prospective resident 21 days before entering into a residence contract
• mandatory entry and exit condition reports
• additional mandatory content in residence contracts
• the introduction of an 18 month buy-back period applying to new residence contracts and retrospectively to all existing residence contracts, with a limited exception for undue operator financial hardship
• a narrowing of the concept of ‘reinstatement’ (for which former residents are responsible) and distinguishing it from the concept of ‘renovation’
• a range of new provisions dealing with charges, funds, budgets and financial statements that are designed to give residents access to more financial information and in consistent formats
• new enforceable behavioural standards for operators, village staff and residents
• new approval processes when there is a change in village operations because an operator proposes to:

• redevelop all or part of a village;
• transfer control of a village scheme to a new operator; or
• close or wind down a village scheme. 

Most of the amendments to the RV Act will commence on a date yet to be proclaimed. However, the 18 month mandatory buy-back provisions will commence shortly when the Bill receives royal assent.

The government is also yet to release a range of ‘approved forms’ that are fundamental to the operation of a number of the key amendments, as well as proposed regulations.

Retirement village operators will need to review and revise their current practices and documentation in light of the changes.