Proposed amendment to the NSW Better Regulation Amendment Bill (Exit Entitlements)
The NSW Better Regulation Amendment Legislation Bill has been introduced into Parliament by the NSW Government. One aspect of this Bill are amendments to the NSW Retirement Villages Act.
The amendments include:
- to provide that a surplus, or part of a surplus, in the annual accounts of a retirement village may, with the agreement of the existing residents of the village, be distributed equally based on the number of existing residential premises in the village rather than the number of existing residents,
- to clarify that if a former occupant of residential premises in a retirement village applies for an exit entitlement order and the Secretary does not make the order, the former occupant may not make another application for an exit entitlement order until the expiration of a further prescribed period or a longer period approved by the Secretary,
- to impose a maximum penalty of 50 penalty units for the failure of a person appointed by a resident of a retirement village to sell the resident's premises, to notify the resident of offers to purchase the premises, or give the resident reports on the marketing of, and inquiries relating to, the premesis,
- to enable the regulations to prescribe additional information that a valuer must include in a valuation of residential premises in a retirement village.
Of concern is an amendment the NSW Opposition moved in the Legislative Assembly debate to amend the Retirement Villages Regulation 2017, to include the Central Coast and City of Lake Macquarie local government areas within the prescribed zone for residents to make an exit-entitlement application within six-months, rather than the existing 12-month timeframe. It is expected this amendment will also be moved in the Legislative Council where the Government does not have the majority of votes.
The Property Council of Australia has met with the Minister's office on this matter and also has requested a meeting with the new Shadow Minister for Better Regulation and Innovation to discuss the impact this amendment will have on operators in these Local Government Areas.
Please contact Emma Ashton
if you need more information.