Consumer Affairs Ministers confirm retirement village legislation has ‘uplifted’ consumer protections

Consumer Affairs Ministers from around the country have declared that recent reforms to retirement village legislation have led to an “uplift” in consumer protections.

Commonwealth MP Rebekha Sharkie had previously called for a federal overhaul of retirement village regulation, claiming resident contracts should be categorised as financial products.

In so doing, this would bring state-regulated retirement villages under the regulatory oversight of the Commonwealth Government and Australian Securities and Investments Commission.

The Retirement Living Council has consistently and vocally opposed this move, and this week Consumer Affairs Ministers have acknowledged the good work undertaken by states.

“This issue was considered decades ago, with the Commonwealth Government excluding retirement villages as financial products because they were determined to be real estate and not financial investments,” RLC Executive Daniel Gannon said.

“We’re talking about homes, not mobile phones. These age-friendly homes also provide care and support services to people as they age – they’re not insurance products or managed investment schemes.

“We’ve long said there is no need for federal intervention in this state governed sector – sentiment shared by relevant state and territory Ministers.”

At the COAG-level meeting – which took place on Wednesday 10 December – retirement village legislation, industry standards and dispute resolution was discussed, amongst a litany of other consumer-related matters.

In a communiqué, Assistant Treasurer and Minister for Financial Services, Stephen Jones, said:

“Ministers discussed consumer issues in retirement villages, strata schemes and practices in the real estate sector. They noted recent steps taken to uplift consumer protections across all three issues. Ministers agreed to report on progress throughout 2025 as they continue to identify opportunities for harmonisation and meaningful uplift in standards to protect consumers in these areas.”

“Most state and territory governments have driven and overseen significant consumer-focused legislative reforms in recent years, uplifting consumer protections and standards,” Mr Gannon said.

“We’ve heard inaccurate claims over recent months about the retirement sector being ‘loosely regulated’ and suffering from ‘systemic issues’. These erroneous claims are not supported by evidence or facts.

“Based on our discussions with state representatives, they have made it clear they want to remain in charge of this important sector given the significant work they have driven.

“The RLC and broader industry welcomes the commitment from states to stay in charge of a sector that is providing better housing that leads to better health outcomes for older Australians.”

Mr Gannon pointed to an independent survey commissioned by retirement villages residents’ associations – released this month – as evidence of a happy, harmonious and well-informed sector.

“This survey was completed by more than 4,000 residents around the country, revealing that almost 85 per cent expressed being satisfied or very satisfied living in their village,” he said.

“Further, almost 85 per cent of residents discussed contract conditions – including exit fees – with their families, while three quarters reported having a good or very good understanding of the information in disclosure documents.

“This is not an ‘us vs them’ industry. It is a sector that works closely and constructively with residents and their families, and with governments to ensure legislative frameworks meet consumer expectations.”

On the matter of dispute resolution, the RLC encourages state and territory governments to ‘beef up’ existing Commissioner-level bodies to ensure any complaints from residents (or operators) are being addressed and resolved appropriately.

In 2023 there were just 55 complaints to the NSW Civil and Administrative Tribunal about retirement villages by the 66,000 people living in NSW communities (0.08 per cent). Some of these complaints were made by operators.

In other states and territories, the complaint rate is less than 0.38 per cent.