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Update on NSW amendments

  • October 30, 2020

Update on NSW amendments

The NSW Retirement Village Amendment Bill 2020 was introduced in and second read into the NSW Legislative Council. 

The Bill enacts the retirement village reforms the NSW Government announced earlier this year.

They include:

  • 42-day cap on fees for general services once a registered interest holder has permanently vacated a village;
  • Providing for a resident to apply to the Secretary of the Department of Customer Service for an order requiring an operator to pay an exit entitlement if they believe the operator has unreasonably delayed the sale of the premises after the prescribed time period. This time-frame is six months in metropolitan areas and 12 in regional; and
  • An Aged Care Rule – this is based on the Victorian model. 

The final Bill has additional provisions that were not in the consultation draft. These clauses appear to be related to the NSW RVRA submission to the draft bill.

The changes include:

  • The timeframe for the commencement of the exit entitlement period will commence 40 days after vacant possession occurs;
  • A resident is eligible to apply for an exit entitlement payment without moving out of the premises if it is for sale; and
  • Former residents with dwellings which are currently for sale at the time the Act commences will be eligible to apply for an exit entitlement payment. However, the proscribed period will commence from the date the ILU was placed on the market. 

The Property Council has concerns about these new provisions due to financial cost implications for operators. 

We are now entering a tricky and delicate phase of our advocacy efforts as the Bill is debated in the Legislative Council this week. 

As you know the NSW Government does not have the majority in the Legislative Council and requires minor parties or the Opposition to support their legislative program. The Property Council and the RLC will continue its strong advocacy program in the lead up o the debate in the NSW Legislative Council on the Bill to ensure that the issues of operators are considered if amendments are made. 

Access a copy of the NSW Retirement Villages Amendment Bill and the second reading speech which gives full details of the reforms.

Contact: Emma Ashton m 0402 277 247 | e [email protected]