Retirement Villages

The Hon. J.M. RANKINE (Wright) (14:59): My question is to the Minister for Ageing. How are recent government initiatives in the retirement villages sector providing certainty for older South Australians?

The Hon. Z.L. BETTISON (Ramsay—Minister for Communities and Social Inclusion, Minister for Social Housing, Minister for the Status of Women, Minister for Ageing, Minister for Multicultural Affairs, Minister for Youth, Minister for Volunteers) (15:00): I thank the member for her question. The retirement village industry in South Australia has been involved in a significant reform program culminating in the commencement of new legislation on 1 January 2018. Following close consultation with the sector and community, the new act and regulations will deliver much-needed transparency and protections for current and future village residents.

The introduction of the guaranteed buyback at 18 months if a residence is not relicensed is a key feature that I have been committed to. This will provide greater certainty around when a resident or their estate will be repaid an exit entitlement. The act also serves to ensure that residents wishing to leave their village can remain in situ until relicensing occurs. This should enable people to feel more able to move closer to family, new friends or a new partner should their circumstances change.

Despite pressure to adopt similar provisions to those interstate, which in many cases result in financial uncertainty, I am pleased to say that South Australia has stood firm and worked to provide a better balance between the interests of residents and operators. Significant steps have been taken to raise awareness of the various costs for prospective residents. The introduction of a standard disclosure statement will provide a summary of fees and charges that a resident will be required to contribute before entering, while living in and upon leaving a retirement village. This increased awareness will assist residents in choosing the offer which best suits them.

The act introduces provisions relating to what is to occur when there is a surplus or a deficit in a village's recurrent fees and requires all villages to adopt a surplus or deficit policy. While the industry has evolved significantly over the past 20 years, penalty amounts have remained relatively unchanged. The application of offences and penalties is a last resort, so they should be significant enough to deter contravention of the act. Penalty amounts now range from $750 to $35,000 for offences relating to the provision of residence contracts.

The retirement village sector is extremely active. This new legislation has provided certainty to operators, resulting in investment and jobs. It is exciting to hear reports of developments underway or currently in the planning stage, including Southern Cross Care's Carmelite premium apartments in Myrtle Bank, the Uniting Communities development of a multiuse project in Franklin Street and The Brougham in North Adelaide overlooking the city.

In addition, Living Choice has announced a $40 million retirement village on the edge of the Flagstaff Hill golf course, which will include 133 villas and apartments for around 200 residents. Life Care has announced a development on the grounds of Pedare College in Golden Grove, and Stockland are expanding their Somerton Park Seniors Living Community. This piece of consumer legislation aims to strengthen the protections available to residents while providing greater clarity for operators. There is a fine line between the interests of operators and consumers, and I strongly believe that this act has achieved this balance.

One of the key important parts for me, as we go out before this legislation commences, is to make sure that both operators and residents are informed. We have scheduled some information sessions in regard to this: on 2 August at Mount Gambier for operators, on 14 August in Victor Harbor for residents and operators, on 16 August at Metro North in Golden Grove for residents and on 18 August at the ACS State Symposium in Adelaide for operators.

The SPEAKER: The minister's time has, alas, expired. The member for Fisher.