Changes to Western Australia’s retirement village laws have come into effect today, introducing new requirements for operators and additional protections and rights for residents through the Retirement Villages Amendment Act 2024.
Lawyers advising clients on agreements, obligations or disputes in this area should be aware of the changes.
The reforms aim to promote confidence in the retirement village sector, support future development and provide operators with greater transparency and improved industry standards. They are also intended to help residents make informed choices when entering a retirement village and understand and manage the costs associated with entering, living in and leaving a village.
Consumer Protection, a division of the Department of Local Government, Industry Regulation and Safety, will implement the reforms in five stages over the next two years.
From today, retirement village operators must pay exit entitlements and complete buybacks of strata-titled properties within 12 months of a resident moving out, unless an earlier date applies. In exceptional circumstances, operators can apply to the Commissioner for an extension of, or exemption from, these requirements.
Eligible residents can also request that up to 85 per cent of their unpaid exit entitlement be paid directly towards aged care accommodation costs.
Residents will have greater input into how their village is run, with operators required to consult residents before finalising annual budgets. New Rules of Conduct will establish expectations for operators, staff and residents.
The reforms also introduce stronger village closure laws, requiring operators to have approved plans in place before closing a village.
Further changes will take effect from 1 December 2026, covering consultation on village modifications, reinstatement and renovation of units when residents depart, and property condition reports at the beginning and end of a resident’s tenure.
Future stages, commencing from July 2027 to 2028, will introduce a public retirement village register, additional disclosure requirements and stronger rules around capital works expenses. Consumer Protection said the staged implementation would give stakeholders time to understand and adjust to the new requirements.
More information and resources are available on the Consumer Protection website.
