Deciding to move into a Retirement Village involves significant lifestyle changes and considerable financial commitment; this may be at a time when a person is quite vulnerable. The Government has a responsibility to ensure that legislation is in place to protect the rights and enforce the responsibilities of all parties involved.

Currently, Retirement Villages operating within the ACT are subject to the Fair Trading Act (ACT) 1992, under the Retirement Villages Industry Code of Practice.

The Retirement Villages Industry Code of Practice defines a Retirement Village as “… intended to be predominately or exclusively occupied by retired persons.” [1] By definition such persons are elderly and may be on a fixed income.

The ACT is the only Australian jurisdiction without Retirement Village legislation. The object of the forums and discussion is to see whether the ACT should be brought into line with all other Australian jurisdictions.

Three key areas have been identified where increased consumer protection for residents and certainty for the industry are needed. These are:

• Contracts -Provision and disclosure of information
• Financial management and
• Dispute resolution

It is noted that there are many matters of concern, or confusion, in relation to contracts, residents' and operators rights and responsibilities, financial information, village rules and dispute resolution.

One could perhaps expect that such matters could be dealt with through voluntary codes and self regulation; however, it has been found that this method of regulation, currently employed, has not led to a satisfactory experience for the parties involved.

This is why I am currently holding discussion forums and seeking submissions on the need for a clear legal framework which sets out the rights and obligations of a Retirement Village resident and Operators alike, whilst also improving consumer protection.

For instance, should legislation be introduced similar to that in other jurisdictions?

However, if legislation is introduced, there should also be a reasonable transition period allowed for operators to amend existing contracts and practices so that they can comply with the new legislation.

Other matters also need to be considered, for instance the need to:

• establish a tribunal, or a Retirement Villages Commissioner, to deal with dispute resolution
• introduce compulsory accreditation and registration of all Retirement Villages,
• provide an information and education process that ensures current residents and prospective residents are aware of the changes and implications of any legislation.

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[1] Retirement Villages Industry Code of Practice 1999, Page 2.