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, 16 July 2018

Legislative Change Needed for Victorian Retirement Villages


The push continues to revise the definition of a retirement village in the Victorian Retirement Village Act 1986 to make all cost inclusive residential tenancy contracts the mandatory first offer.

Because
  • This will provide transparent and thereby lower cost rates for future retiree lessees.
  • Would allow retirees to rent, when they do not have the capital to loan interest free to the developers.
  • It will simplify and shorten contracts so that they are more acceptable
  • It will introduce free market competition.
  • It will free up family housing in the community.
  • Should increase the retirement village uptake rate presently quoted at 5.7% of over 65 year olds compared to 15% in the USA.
The NSW government has made a change to their act which allows residential tenancy within a defined retirement village.

The main area of contention is that retirees must pay an in-going contribution that in Victoria cannot be rent. The phrase 'cannot be rent' has been removed from the NSW Act.

legislation change need for retirement villages



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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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