Retirement Villages Bill

Second Reading

The Hon. I.K. HUNTER (Minister for Sustainability, Environment and Conservation, Minister for Water and the River Murray, Minister for Climate Change) (17:04): I move:

That this bill be now read a second time.

I seek leave to have the second reading explanation inserted in Hansard without my reading it.

Leave granted.

Since the original Retirement Villages Act was implemented in 1987, the industry has evolved significantly and there has been both strong concern amongst the community and evidence that the current Act does not provide adequate protections. In January 2015, Cabinet agreed to the release of the Retirement Villages Bill 2015 for public consultation. The Bill has been informed by the significant recommendations of the Select Committee on the Review of the Retirement Villages Act 1987 and consultation undertaken by the Office for the Ageing. In particular, the Select Committee made recommendations that sought to address the rights and obligations of residents and operators, contractual disclosure, financial obligations, compliance and regulation and dispute resolution within the sector.

The Bill forms the third element of measures implemented and progressed to support reforms to the Retirement Village Sector. The first two elements include the production of Better Practice Guidelines aimed at promoting best practice amongst Retirement Village operators and the commencement of a Retirement Villages Advocacy Service.

Legislative change forms a key component of the reforms. Since the original Act was implemented in 1987 the industry has evolved significantly and the existing Act increasingly provides poor protection of consumers. In line with this, the Bill focusses on several themes:

Ensuring improved clarity and transparency of retirement village contracts;

Increased disclosure of information to ensure that consumers are well informed before entering a contract; and

Improved clarity for residents and operators in understanding their rights and responsibilities under the Act.

The initial development of the Bill was also informed by a targeted consultation process led by the Office for the Ageing with 20 industry stakeholders. Ongoing consultation since this time has occurred through the Retirement Villages Advisory Committee chaired by the Office for the Ageing with a range of key operator and resident stakeholders.

A public consultation period on the Bill occurred for eight weeks in early 2015 and attracted over 300 submissions. The Bill was largely well received by operators and residents. Significant analysis and consideration of all of the submissions was undertaken, resulting in the Retirement Villages Bill 2016 before you today.

The Retirement Villages Bill 2016 is an important piece of reform work that is focussed on increasing transparency, improving disclosure and providing clarity for prospective residents, residents and operators or retirement villages.

Major amendments

The following are some of the main features of the Bill.

The requirement to be predominately retired will remain – there was consistency across both resident and operator submissions on this.

A number of definitions that currently create considerable confusion for both residents and operators will be clarified. These include definitions of special levy, special resolution, capital fund, period of occupation, recurrent charge and vacant possession.

Insertion of a provision which provides that a person cannot be compelled to give information if the information might incriminate the person of an offence.

Clarification that the costs of an independent valuation are to be split evenly between the parties.

Clarification that where a village needs to adopt a surplus or deficit policy it should be adopted by special resolution of residents.

Aged Care repayment

The Retirement Villages Bill aims to provide greater flexibility to the way that operators can provide early repayment to eligible residents, as recommended by the Select Committee. Residents who demonstrate need will be able to apply for the village operator to pay the lump sum or meet the daily payments for an aged care facility until the village unit is relicensed. These payments will be deductable from the final exit entitlement.

Statutory Repayment

A 12 month statutory repayment provision was originally proposed and the feedback received has been very carefully considered. The legislation will still contain a statutory repayment period, but this has been revised to a period of 18 months and will also enable a resident to remain in situ during the relicensing period.

A 12 month repayment period may inadvertently drive the marketplace to offering contractual arrangements with poorer capital gains returns for residents and a lower return for their units, with prices reduced to ensure a sale prior to the expiration of the statutory repayment period.

Many residents entering a retirement village will purchase a unit subject to sale of their house. The time taken to sell their house will directly impact on the time taken for a retirement village operator to re-licence a unit. It takes significantly longer to achieve a sale in some regional areas than it does in metropolitan Adelaide. The 30 day settlement period and time for operators to refurbish a unit support a longer statutory repayment period such as 18 months, to ensure that operators in outer metropolitan and regional areas are not disadvantaged.

The revised period of 18 months was arrived at in recognition of the unintended consequences which were highlighted during the consultation period from key stakeholders including residents, industry and third party representatives.

If a resident:

ceases to reside in the village, and after 18 months if the residence is not relicensed, the operator will be required to repay the resident their exit entitlement in accordance with their residence agreement.

OR

provides notice in writing to the operator that they intend to leave the village and have the operator to remarket their residence while the resident remains in occupation, the operator must remarket the residence. If it is not relicensed within 18 months of the operator receiving the notice, the operator must repay the exit entitlement to the resident in accordance with the provisions of their residence agreement. The resident at this point must cease to reside in the village.

OR

a resident provides notice of their intention to cease to reside in the village an operator may offer to buy back the licence to occupy the residence from the resident in accordance with the provisions of their residence contract.

Legislative Review Period

The Bill includes a 5 year review clause on the statutory repayment period. This review of the statutory repayment period will provide an opportunity to assess the impacts of the clause and to ensure that the application has achieved the desired outcomes.

Disclosure statement

The Bill introduces a disclosure statement to be provided prior to a resident being able to sign a resident contract. This is in line with the Select Committee's recommendation. The aim of this statement is to improve transparency of all the fees and charges a resident would be responsible for prior to entering into a village, while living in a village and when leaving a village. This disclosure statement will be developed in conjunction with key stakeholders.

Premises condition report

A number of operator submissions raised concerns about the premises condition report and its usefulness in its current form. An amended form is to be completed within 10 business days of a resident being entitled to occupation of a residence and must be signed by both parties. This is intended to ensure the report accurately reflects the 'as is' condition of the residence when a resident takes up occupation of the residence.

In effect, the passing of this Bill should result in:-

Increased financial and operational transparency in both documentation and practice for operators of villages;

Enhanced resident confidence in financial and operational information provided, clarification of their rights and responsibilities and the facilitation of informed decision making by residents, and;

An increase in the capacity of the responsible agency to monitor compliance with the legislation.

This Bill reflects the Government's commitment to ensuring –

That appropriate legislation is in place to reflect the changes in contemporary society whilst maintaining flexibility within the retirement village industry to support the variation of schemes and the ongoing needs of an ageing population;

That operators enhance their operational practices and do the right thing by their residents, and;

That residents have access to an appropriate level of legislative protection to safeguard their rights.

I commend the Bill to Members.

Explanation of Clauses

Part 1—Preliminary

1—Short title

2—Commencement

These clauses are formal.

3—Objects

This clause sets out the object of the measure.

4—Interpretation

This clause defines terms used in the measure.

5—Application of Act

This clause provides that the provisions in the measure are to apply to retirement villages established before or after the commencement of the measure, provides power to the Minister to exempt certain organisations, retirement villages or classes of organisations or retirement villages from complying with the measure conditionally or unconditionally, and provides a maximum penalty of $10,000 for non compliance with a condition of such an exemption.

Part 2—Administration

Division 1—Registrar

6—Appointment of Registrar

The clause provides for the appointment by the Minister of a Registrar for the purposes of the measure.

7—Registrar's functions

This clause sets out the functions of the Registrar.

8—Registrar's power to require information

Subclause (1) provides that it is an offence (carrying a maximum penalty of $2,500, expiable on payment of $210) if a person fails to give the Registrar information (verified by statutory declaration) reasonably required by the Registrar for the purposes of enabling the Registrar to carry out his or her functions under the measure. Subclause (2) provides that a person cannot be compelled to give information under the proposed section if it might tend to incriminate the person of an offence.

9—Registrar's obligation to preserve confidentiality

This clause imposes on the Registrar an obligation to preserve the confidentiality of certain information.

10—Delegation

This clause provides for the Registrar to delegate a power or function vested in or conferred on the Registrar under the measure.

11—Annual report

The clause requires the Registrar to provide the Minister with an annual report on the Registrar's work and operations each financial year. The report is required to be tabled by the Minister in Parliament.

Division 2—Registration of retirement village schemes

12—Register

The clause provides a list of information that must be contained in the register required to be maintained by the Registrar. The clause also provides the manner in which the register is to be made available to the public.

13—Notification of information required for register

The clause provides a list of information that the operator of a retirement village established after the commencement of the proposed section must provide to the Registrar within 28 days after the first person enters into occupation of the village in accordance with the retirement village scheme. The operator of a village is also obliged to provide the Registrar with details of any change in such information. The penalty for failure to comply with these requirements is a fine of $2,500, expiable on payment of a fee of $210.

Division 3—Authorised officers

14—Appointment of authorised officers

This clause provides for the appointment by the Minister of persons to be authorised officers for the purposes of the measure.

15—Identification of authorised officers

This clause sets out the requirements for the issue of authorised officers with an identity card.

16—General powers of authorised officers

This clause sets out the powers able to be exercised by an authorised officer and the circumstances and conditions under which those powers may be exercised.

17—Power to require information etc

The clause provides for the circumstances in which an authorised officer may require a person to provide information, documents or answer questions.

18—Offence to hinder etc authorised officers

This clause creates a number of offences, with a maximum penalty of $10,000, for a person:

hindering or obstructing an authorised officer in the exercise of powers conferred under the measure;

using abusive, threatening or insulting language to an authorised officer, or a person assisting an authorised officer;

refusing or failing to comply with a requirement of an authorised officer;

providing false or misleading information in information or answers to questions in purported compliance with a requirement made or question asked by an authorised officer;

falsely representing that a person is an authorised officer.

A person who assaults an authorised officer, or a person assisting an authorised officer, in the exercise of powers under the measure, is guilty of an offence with a maximum penalty of $20,000 or imprisonment for 2 years.

Part 3—Rights of residents

Division 1—Creation and exercise of residents' rights

19—Residence contracts

Subclause (1) provides that a residence contract must be in writing, comply with the proposed section and comply with any requirements prescribed by the regulations. Subclause (2) sets out the information that must be included in a residence contract. Subclause (3) provides that the contract will be taken to include a warranty on the part of the operator of the correctness of the information contained in the residence contract and other documents required to accompany the contract under proposed section 21.

20—Disclosure statements

The clause provides that a disclosure statement must be in writing and comply with the proposed section and the requirements (if any) prescribed by the regulations. A disclosure statement must provide information and statements about the financial arrangements relating to residents of the retirement village as set out in the clause.

21—Information to be provided before residence contract entered into

The clause provides that the operator of a of a retirement village must, at least 10 business days before a person enters into a residence contract, give the person a copy of each of the following documents, in addition to any other document prescribed by the regulations:

the residence contract;

the disclosure statement;

if the residence contract relates to a retirement village already established—the financial statements presented at the last annual meeting of residents of the village, including a written statement of any subsequent change in the affairs of the village and the operator that may significantly affect the resident's decision to enter the village;

the residence rules;

the remarketing policy;

any code of conduct to be observed by the operator or residents.

22—Premises condition report

This clause sets out the information and requirements for a premises condition report required to be given by an operator to a resident of a retirement village not more than 10 business days before a person enters into occupation of a residence in a retirement village.

23—Rights in relation to contract etc

Subclause (1) provides that an operator of a retirement village must not make representations or give specified information to residents or prospective residents without the approval of the Minister. Subclauses (2) to (4) outlines the rights and obligations of a prospective resident in relation to the resident's right to cool off, including a provision outlining the circumstances in which a resident may waive the cooling off entitlement. Subclause (5) provides that a contract may be rescinded by written notice to the operator. Subclause (6) provides that a contract may be enforced against the operator for the time being of the retirement village.

24—Offences

Subclause (1) provides that it is an offence for an operator not to observe a provision of the proposed Division with a maximum penalty of $35,000. Subclause (2) provides that it is an offence for a person to knowingly make a statement that is false or misleading in a material particular (whether by reason of the inclusion or omission of a particular) in information provided to a prospective resident under the proposed Division with a maximum penalty of $35,000.

Division 2—Financial matters

25—Ingoing contributions

The clause sets out the payment requirements for the ingoing contribution. An ingoing contribution is a payment made by or on behalf of a person in consideration for, or in contemplation of, the person becoming a resident in a retirement village (but does not include a recurrent charge, an exit fee, a special levy or any other payment excluded by the regulations from the ambit of the definition of ingoing contribution).

26—Exit entitlements

The clause provides for the manner in which an exit entitlement may be paid out to a resident. An exit entitlement is an amount of money payable by an operator under a residence contract to a person who ceases to reside in the retirement village or when certain conditions specified in the contract are fulfilled.

27—Payment of capital fund contributions deducted from exit entitlement

The clause sets out the requirements for circumstances where the operator of a retirement village is to make payments of an amount deducted from an exit entitlement into a capital fund. A capital fund is defined as a contingency, sinking or other reserve fund or account established for the purposes of capital replacement or improvements, long-term maintenance or other similar items in respect of a retirement village.

28—Arrangements if resident is absent or leaves

The clause sets out the circumstances in which a resident ceases to be liable to pay amounts and charges as a result of a resident being absent from the retirement village for a period of time, or if the resident ceases to reside in a retirement village. The clause also provides for the circumstances in which an operator is entitled to recover from the resident any such amounts and charges.

29—Arrangements if resident leaves to enter residential aged care facility

The clause provides for the circumstances in which a resident who has been approved to enter into residential care at an aged care facility under the Aged Care Act 1997 of the Commonwealth may apply to an operator for payments to be made to the aged care facility on behalf of the resident. An operator who fails to pay an amount as required under the proposed section is guilty of an offence with a maximum penalty of $5,000, expiable on payment of a fee of $315.

30—Certain taxes, costs and charges must not be charged to residents

The clause provides that certain taxes, costs, fines, fees and charges as specified in the clause are not recoverable from a resident either directly or by increasing recurrent charges payable by residents.

Division 3—Meetings

31—Convening meetings of residents

This clause outlines the circumstances in which the operator of a retirement village is required to convene a meeting of residents, and the requirements for holding such a meeting.

32—Proceedings at meetings

The clause outlines the procedural requirements for conducting a meeting of residents convened under proposed section 31.

33—Offences relating to meetings

The clause sets out a number of offences for an operator who fails to comply with specified requirements in proposed section 31, with a maximum penalty of $10,000 or expiable on payment of a fee of $315.

34—Consultation with new operator

The clause provides that it is a term of every agreement that will result in a change in the operator of a retirement village (including a change by virtue of the sale of an interest in the land within the village) that, before the change is effected, the person who is to be the new operator will convene a meeting of residents at which the person (or his or her representative) will present a report on any changes that are proposed for the retirement village (including any proposal to change a charge, fee or levy payable by residents), and his or her plans for the future management and operation of the retirement village and answer any reasonable question put by a resident. The clause also provides for notice of such a meeting to be given to the residents, and that if the term of agreement is not complied with, the new operator is guilty of an offence with a maximum penalty of $10,000.

35—Consultation about village redevelopment

The clause provides that it will be a term of every residence contract that, before any redevelopment of a retirement village is commenced, the operator will convene a meeting of residents at which the operator will present a plan of and report on the proposed redevelopment and answer reasonable questions put by residents. The clause provides the requirements for notifying residents of the meeting, and the consequences for an operator if resident's rights are not considered.

Division 4—Residents' committees

36—Residents' committees

The clause provides that the residents of a retirement village may elect a residents' committee, and sets out the manner of election to the committee, and the functions, procedures and meeting requirements of the committee. The clause also provides a regulation making power in respect of the manner of election, functions and procedure of residents' committees and sub-committees.

37—Mandatory consultation with residents' committee in relation to annual budget

The clause requires the operator to convene at least 2 meetings with a residents' committee to discuss matters relating to the accounts, estimates and expenditure of the retirement village as specified in the clause. The meeting need not be held if the residents' committee advises the operator in writing that it does not require the meetings to be held. The clause further sets out the procedural requirements for the meeting. It is an offence with a maximum penalty of $10,000 for an operator to hold an annual meeting without complying with the provisions in the proposed section.

Division 5—General matters

38—Interim financial reports

The clause provides the circumstances in which an operator must, on the request of a resident or a residents' committee, provide an interim financial report, and outlines the information that must be contained in such a report, including information as required by the regulations. It is an offence with a maximum penalty of $5,000 for an operator to contravene a provision relating to requirements of providing an interim report. The clause also allows the operator to require the payment of a specified amount payable to cover the cost of preparing and providing the report.

39—Harsh or unconscionable residence rules

The clause provides that if a residence rule or a provision of a residence rule is harsh or unconscionable the rule or provision is void.

40—Documents to be supplied to residents

The clause lists the documents that the operator of a retirement village must, at the request of a resident, provide to the resident, free of charge, and in addition, an amended set of residence rules, if an alteration is made to the rules.

41—Information about managers to be supplied to residents

The clause provides that the operator of a retirement village must inform each resident of the village of the name and contact details of the village manager and any senior manager and any changes to such details. If the operator of a retirement village refuses or fails to comply with this proposed section, the operator is guilty of an offence with a maximum penalty of $2,500.

Division 6—Termination of residents' rights

42—Termination of residents' rights

The clause provides that a resident of a residence in a retirement village has a right of occupation that cannot be terminated unless in circumstances as specified in the clause. The clause set out the rights and obligations of operators and residents in relation to termination of a resident's right of occupation, and the circumstances in which the South Australian Civil and Administrative Tribunal must make orders in relation to the termination.

Division 7—Resolution of disputes

43—Dispute resolution policy

The clause provides that the operator of a retirement village must have a dispute resolution policy which complies with any requirements prescribed by the regulations. The policy must be provided, on request, to a resident within 5 business days of the request. An operator who fails to comply with a provision of the clause is guilty of an offence with a maximum penalty of $10,000.

44—Application to Tribunal

The clause provides that a party to a dispute between an operator and a resident of a retirement village may apply to the Tribunal for resolution of the matters in dispute. The clause provides for the manner and form of such an application, the circumstances in which such an application may be made and the orders that may be made by the Tribunal in circumstances specified in the clause.

Part 4—Administrators, receivers and managers

45—Application for order appointing administrator

The clause provides for the Minister to apply to the Supreme Court, according to the rules of Court, for an order appointing a specified person as an administrator of a retirement village in circumstances specified in the clause. The clause also provides that the Minister may appoint a person to inquire into, and report to the Minister on, the well-being and financial security of the residents of a retirement village for the purposes of determining whether an application for an order should be made.

46—No application without consent

The clause provides that the Minister is not to apply for an order appointing a person as an administrator under the proposed Part unless the person has consented in writing to the appointment.

47—Terms and conditions of appointment

The clause provides that without limiting the terms and conditions of the order of appointment of an administrator under the proposed Part, the terms and conditions may exempt the administrator from the requirement to comply with such obligations of the operator as are specified or described in the order of appointment.

48—Effect of appointment

The clause provides that operator of a retirement village must not, while an order for the administration of the village is in force, exercise any of the functions of the operator that the administrator is authorised to exercise, but the appointment of an administrator does not relieve the operator of any of his or her liabilities under a residence contract. Subject to the terms of the appointment, a person appointed as an administrator of a retirement village must comply with all the obligations of the operator in relation to the functions that the person is authorised to exercise (including functions under a residence contract), and is, in the exercise of those functions, taken to be the operator.

49—Expenses of administration

The clause provides that the expenses incurred by an administrator in exercising the functions of the operator of a retirement village are payable from recurrent charges and other funds that would otherwise be available to the operator. The clause also specifies that the Crown and the Minister are not liable for expenses incurred by the administrator or any liability of an operator of a retirement village in respect of which an administrator is appointed.

50—Administrator may vary residence contract

The clause provides the circumstances in which an administrator may, with the consent of the Minister amend or revoke an approved annual budget of a retirement village, vary the recurrent charges payable by residents of the retirement village or vary the services offered by the retirement village. The clause also provides that nothing done by the administrator in accordance with the proposed section is to be regarded as a breach of contract or otherwise as a civil wrong, and that no compensation is payable to a person because of the operation of this proposed provision.

51—Revocation of appointment

The clause provides that an order of appointment of an administrator may be revoked or varied by the Supreme Court, and that more than 1 order may be made in respect of the same retirement village.

52—Receivers and managers

The clause provides that a person appointed as a receiver or receiver and manager must (subject to the terms and conditions of the appointment) comply with the operator's obligations under the measure as if that person were the operator. This proposed provision does not apply to the extent that it is inconsistent with the Corporations Act 2001 of the Commonwealth.

53—No personal liability of administrator, receiver or receiver and manager

The clause provides that an administrator, a receiver or a receiver and manager (or any person acting under the direction of an administrator, a receiver or a receiver and manager) is not personally liable for an act or omission done or omitted in good faith under the measure or any other Act.

Part 5—Miscellaneous

54—Endorsement of certificates of title

The clause sets out the requirements for the endorsements on the relevant certificates of title for land that is, or is to be, used as a retirement village.

55—Lease of land in retirement village

The clause sets out the circumstances in which the operator of a retirement village may lease or grant a licence to occupy land within the village. If a lease or licence is granted contrary to the requirements in the proposed provision the operator is guilty of an offence with a maximum penalty of $10,000.

56—Termination of retirement village scheme on application to Supreme Court

The clause provides that a retirement village scheme may not be terminated without the approval of the Supreme Court while a person who has entered into occupation of a residence under the scheme remains in occupation of that residence. The clause sets out the procedures required for an application to the Court to terminate a retirement village scheme.

57—Voluntary termination of retirement village scheme

The clause provides the circumstances in which the Minister may, by notice in the Gazette, terminate a retirement village scheme. The clause further provides power for the Registrar-General to make any necessary issue, alteration, correction or cancellation of certificates of title to give effect to the termination, on provision of a certification by the Minister, if required by the Registrar-General.

58—Certain persons not to be involved in the administration of a retirement village

The clause provides that the following persons may not be concerned in the administration or management of a retirement village, with a maximum penalty of $35,000:

a person who is an insolvent under administration within the meaning of the Corporations Act 2001 of the Commonwealth;

a person who has during the preceding 5 years been convicted of an offence to the person or an offence involving fraud or dishonesty, being a sentence that ended during the preceding 5 years.

59—Non-compliance may be excused by the Tribunal

The clause provides that the Tribunal may, on the application of any person, excuse that person from the consequences of inadvertent non-compliance with a provision of the measure, may make consequential orders protecting the interests of a person affected by the contravention, and any other order that the justice of the case may require. An application under this proposed provision may not be made after proceedings for an offence relating to the non-compliance have been commenced.

60—Contract to avoid Act

The clause provides that an agreement or arrangement that is inconsistent with a provision of the measure or purports to exclude, modify or restrict the operation of the measure, or a right conferred by or under the measure is to that extent void and of no effect (except where such inconsistency, exclusion, modification or restriction is expressly permitted by the measure).

61—Codes of conduct

The clause provides that the regulations may prescribe codes of conduct to be observed by operators and residents of retirement villages, and that is a term of a residence contract that the operator and residents will observe any code of conduct (subject to any agreement between the operator and the resident that, pursuant to a power contained in the code of conduct, provides for the exclusion or modification of a provision of the code of conduct in the circumstances of the particular case). An operator who breaches a code of conduct is liable to a fine not exceeding $2,500 expiable on payment of a fee of $210, as if the operator had breached the regulations.

62—Representations relating to retirement villages

The clause sets out a number of offences with a maximum penalty of $10,000 for persons making certain representations relating to retirement villages as specified in the clause.

63—Offences

The clause provides that a prosecution for an offence specified in the measure can only be commenced by the Minister or a person authorised by the Minister, and that in proceedings for an offence, a document apparently signed by the Minister that appears to be an authorisation to commence proceedings will be accepted, in the absence of proof to the contrary, as proof of such an authorisation.

64—Delegation

The clause gives the Minster power to delegate a power or function vested in or conferred on the Minister by or under the measure.

65—Service

The clause sets out the service requirements for a notice or document required to be given to a person under the measure.

66—Regulations

The clause gives the Governor power to make regulations contemplated by the measure.

Schedule 1—Proceedings before the Tribunal

1—Application of Schedule

The Schedule sets out various rules that apply to proceedings before the Tribunal under the measure.

2—Application to vary or set aside order

The clause provides that a person who is or was a party to proceedings before the Tribunal may apply to the Tribunal for an order varying or setting aside an order, decision or direction made or given in those proceedings. The application must be made within 1 month of the making or giving of the order, decision or direction unless the Tribunal allows an extension of time. An order made by the Tribunal under the proposed section does not constitute a review of a decision for the purposes of the South Australian Civil and Administrative Tribunal Act 2013, and does not limit any provision of that Act.

3—Presentation of cases before Tribunal

The clause provides that a party to proceedings before the Tribunal under the measure must present his or her own case and not be represented or assisted in the case by another person, except in circumstances specified in the clause.

4—Costs on referral of question of law

The clause provides that any costs arising from the referral of a question of law to the Supreme Court including costs incurred by the parties must be paid out of the General Revenue of the State.

Schedule 2—Related amendments, repeal and transitional provisions

Part 1—Preliminary

1—Amendment provisions

This clause is formal.

Part 2—Amendment of Residential Tenancies Act 1995

2—Amendment of section 3—Interpretation

The clause inserts a new definition of prescribed retirement village in substitution for the existing definition of no premium retirement village. This change is consequential on the removal of the term premium in the measure.

3—Amendment of section 5—Application of Act

The clause makes consequential amendments to references to the Retirement Villages Act 1987 and the term no premium retirement village.

Part 3—Repeal

4—Repeal of Retirement Villages Act 1987

This clause repeals the Retirement Villages Act 1987.

Part 4—Transitional provisions

5—Exemptions

The clause provides for the continuing effect of exemptions conferred by notice under the Retirement Villages Act 1987.

6—Registrar

The clause provides for the continuation of the office of the Registrar for the balance of his or her term of appointment.

7—Register

The clause provides for the register maintained under the Retirement Villages Act 1987 to form part of the register under this measure.

8—Authorised officers

The clause provides for the continuation of the appointment of an authorised officer under the Retirement Villages Act 1987.

9—Residence contracts

The clause provides for the continuation of a residence contract entered into in compliance with the Retirement Villages Act 1987 and before the commencement of this measure.

10—Exit entitlements

The clause provides that if a resident ceased to reside in a retirement village before the commencement of proposed section 26, that section applies in relation to the resident as if the period of 18 months referred to in proposed section 26(2)(b) were the period of 18 months after the commencement of that section. The clause also requires a review on the operation of section 26 to be carried out as soon as practicable after the fifth anniversary of the commencement of that section.

11—Surplus or deficit of accounts

The clause provides for the adoption of a policy if 1 or more residence contracts in force in relation to a retirement village immediately before the commencement of the clause do not make provision for dealing with surplus and deficits in relation to the recurrent charges of a retirement village for any financial year.

12—Proceedings

The clause provides for the continuation of the right to make an application or seek a review under the Retirement Villages Act 1987, that would have been commenced before the Residential Tenancies Tribunal, to be commenced instead before the South Australian Civil and Administrative Tribunal.

13—Application of offences under section 62

The clause provides that a person does not commit an offence against proposed section 62 in respect of a representation contained in, or made in relation to, a lease or other contract or agreement entered into before the commencement of that proposed section.

14—Regulations

The clause gives the Governor power to make regulations of a transitional nature.

Debate adjourned on motion of Hon. S.G. Wade.