Regulatory Change to Financial Liquidity Challenges for Retirement Living Providers

 

On the 30 March, the Property Council contacted the Department of Consumer Affairs seeking assistance in addressing the significant financial exposure facing retirement village operators caused by restriction on auctions and open houses. This letter was submitted by the Property Council Victoria to the Minister for Consumer Affairs, Gambling and Liquor Regulation following initial outreach.

Specifically, we requested an amendment to the regulation that exists in respect of contracts entered into between August 1 2006 and 1 August 2017, which requires village operators to advance an outgoing resident's refundable accommodation deposit when a resident transitions into aged care, to be suspended and instead allow villages to fund residents' entry to care via the Daily Accommodation Payment.