The Transfer of Intergenerational Wealth

"Families need to be aware that what we are talking about here is the transfer of intergenerational wealth, not to families, but into the pockets of large multi-nationals.

Shame about elderly people not having enough money for aged care."

Tom Gait, Retirement Village Residents Association.

Monday, 25 June 2018

NSW Retirement Village Reforms Fall Well Short

Media reports of announced retirement village reforms for New south Wales appear to fall well short of what is needed to fully protect retirees. A significant omission was the establishment of an industry Ombudsman.

This report from ABC News:-

"Retirement villages will have to abide to a mandatory code of conduct — and will be policed by retirement village ambassador — in a range of sweeping reforms set to be introduced to the sector in New South Wales.

Some of the recommendations included:

  • Improving up-front disclosure provided to prospective residents, making it simpler to understand the critical terms and conditions.
  • A legally-binding exit fees and charges statement is provided early in the process.
  • A requirement for operators to provide residents with an opportunity for a regular contract check-up during their occupancy.
  • A requirement for an operator to buy back the unit after a maximum timeframe from a resident leaving the village that is a registered interest holder.
  • Simplifying the funding arrangements for maintenance.
  • Fairer dispute resolution processes.
  • Increasing Fair Trading's oversight of retirement villages through targeted compliance activities that focus on retirement villages.
  • The introduction of a code of conduct."


Full story here - http://www.abc.net.au/news/2018-06-24/retirement-reforms-coming-as-nsw-gets-ambassador/9904092


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Function of Government

The role of government is to create an environment for commerce to function whilst at the same time protecting retirees and particularly vulnerable retirees from both financial and emotional harm emanating from that function.

The Victorian Retirement Villages Act 1986 provides the environment for commerce to function but fails to fully protect retirees from financial and emotional harm as a result of it.

The Victorian legislative definition of a retirement village in demanding the payment of an 'in-going' amount without the transfer of property ownership is a major contributor to that financial and emotional harm suffered by retirees.


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