Victorian retirement village resident raises with Minister for Consumer Affairs Marlene Kairouz the matter of a publication of the department 'Guide to buying and living in a retirement village' that has material which is false, misleading or has the capacity to mislead.
"I wish to raise the issue of statements that have the 'capacity to mislead' consumers made in the booklet downloadable from the Consumer Affairs web site. The booklet being - Guide to choosing and living in a retirement village.
There are three major points of concern all with the capacity to mislead consumers are -
Page 15 - Deferred Management Fee "how not-for-profit villages improve their services or subsidise maintenance charges". There is nothing in the Retirement Villages Act 1986 that requires an operator to do this, in fact they can and do contract away from it by including a statement in the contract of occupation that Deferred Management Fees are 'for their own use absolutely'. The statement in the booklet is simply not true in every case and clearly has the 'capacity to mislead' consumers.
Page 17 - Capital Gains - The statement that 'most contracts share any capital gain between the resident and the village owner' has the 'capacity to mislead' consumers as the use of the word 'most' is simply not true. Industry data has shown that only 41% of Australian village contracts share capital gain. It is difficult to imagine Victoria is completely isolated from this industry ratio.
Page 21 - Auditing of Financial Statements - The statement "the financial statement must be audited. unless residents have agreed by special resolution" - Operators can and have applied for exemption to this mandate under - Section 6 of the Act – (1) Any religious or charitable organization may apply to the Director to have the organization declared an exempt organization for the purposes of all or any of the provisions of this Act. The statement on page 21 of the booklet has the 'capacity to mislead' consumers as the statement is simply not true in every case.
All three issues above relate to material that is false, misleads or has the capacity to mislead retirees when it comes to selecting an individual retirement village or the sector itself.
I was deeply disappointed and saddened by an initial reply on the matter- “The Guide itself contains a clear disclaimer that information which it contains about the law may be expressed in general statements so as to avoid the use of technical legal language.”
I do not seek more 'technical legal language', simply accuracy which would remove the capacity to mislead. Rather than fix the issue the department seems to simply hide behind the disclaimer, to me this is simply not good enough from a government department.
The ACCC is very clear as to corporate responsibility when it comes to misleading statements and I see an even greater responsibility for governments and government departments.
“It is illegal for a business to make statements that are incorrect or likely to create a false impression. It does not matter whether a false or misleading statement was intentional or not”
It is the role of government to enable a commercial environment for the retirement village industry, but it is surely not the role of government to contribute to mis-information which can be at the direct financial benefit of operators whilst at the direct financial and emotional cost of Victorian retirees.
In the interest of Victorian retirees the document should be amended to remove the misleading or capacity to mislead components.
• The statement in the booklet, Page 15 - Deferred Management Fee "how not-for-profit villages improve their services or subsidise maintenance charges" is simply not true in every case. Without the need for any technical legal language the statement should be amended to read for example "how some not-for-profit villages may improve their services or subsidise maintenance charges" .
• Page 17 - Capital Gains - The statement that 'most contracts share any capital gain between the resident and the village owner' is simply not true. Industry data has shown that only 41% of Australian village contracts share capital gain. Without the need for any technical legal language the statement should be amended to read for example ' some contracts may share any capital gain between the resident and the village owner' .
• Page 21 - Auditing of Financial Statements - The statement "the financial statement must be audited. unless residents have agreed by special resolution" is simply not true in every case. - Operators can and have applied for exemption to this mandate under Section 6 of the Act. Without the need for any technical legal language the statement should be amended to read for example "the financial statement must be audited unless residents have agreed by special resolution, some organisations however can be granted an exemption."
Monday, 23 September 2019
Those Who Have A Responsibility To Care Don't
Why the Victorian #retirementvillage industry is the least protective of retirees. BECAUSE THOSE WHO HAVE A RESPONSIBILITY TO CARE, DON'T. @MarleneKairouz @DanielAndrewsMP #vicpol #springst @michaelobrienmp @JillHennessyMP @consumer_action @justice_vic pic.twitter.com/yjuLXYCEJP
— Les Scobie (@retvilldotnet) September 22, 2019
Victorian Andrews Government Condones Misleading Material
Victorian @DanielAndrewsMP government condones circulation of misleading information to retirees through @consumervic information booklet on retirement villages. Time for @JillHennessyMP and @MarleneKairouz to put a stop to it. #vicpol #springst @michaelobrienmp @3AWNeilMitchell pic.twitter.com/mt5fNZNMPC
— Les Scobie (@retvilldotnet) September 16, 2019
Victorian Retirement Village Legislative Review
The @DanielAndrewsMP government is moving toward a review of the #retirmentvillages Act. Governments have been here before and failed. Will @MarleneKairouz and @consumervic get it right this time. Sadly history says they won't. #vicpol #springst @michaelobrienmp @VictorianLabor pic.twitter.com/T8YGsBNw8V
— Les Scobie (@retvilldotnet) September 12, 2019
Pyramid Aged Care Home To Close
Pyramid Hill aged care home set to close leaving 30 out of work in regional town https://t.co/wqEjxcfrPV via @ABCNews
— Les Scobie (@retvilldotnet) September 11, 2019
PM Accused of Deception Over Pensioner Bonus
PM accused of deception over pensioner bonus | The New Daily https://t.co/g9pEXzSIXH
— Les Scobie (@retvilldotnet) September 11, 2019
Property Auction Clearance Rates Declared Lies
Why the 'auction clearance' results are lies | Jenman Support https://t.co/rsVtke1rEn
— Les Scobie (@retvilldotnet) September 11, 2019
Retirement Village Legislation Review For Victoria
Victorian Government to review #retirementvillage legislation. Will they get it right this time? History indicates they will fail, seduced by the industry lobby again. #vicpol @DanielAndrewsMP @MarleneKairouz @consumervic @michaelobrienmp pic.twitter.com/uakbOcyblQ
— Les Scobie (@retvilldotnet) September 10, 2019
Retirement Village Industry Shows Ugly Side.
The #retirementvillage industry shows its ugly side again, when will legislators learn. https://t.co/1g8RuXg5yO This industry is not about the provision of benevolent housing for retirees, it is about MONEY, MONEY, MONEY. #qldpol @AnnastaciaMP @katejonesqld @DebFrecklington
— Les Scobie (@retvilldotnet) September 9, 2019
Fresh Review of Victorian Retirement Villages Act
Victorian @DanielAndrewsMP Government reportedly reviewing Retirement Villages Act. Will Vic legislators be seduced again by the industry mantra that increased consumer protection will stifle industry 'innovation and growth'. #vicpol @MarleneKairouz @michaelobrienmp @sdanck pic.twitter.com/6A56u5ta2H
— Les Scobie (@retvilldotnet) September 8, 2019
Misleading Retirement Village Information
Consumer Vic still publishing material with capacity to mislead retirees. I have lived the experience and can assure every legislator that the @consumervic statements in question are inaccurate. Time for the Minister @MarleneKairouz to act. #vicpol @abc730 @acccgovau @moniquehore pic.twitter.com/fTdMltpaWQ
— Les Scobie (@retvilldotnet) September 7, 2019
Tuesday, 10 September 2019
Heartbroken AVEO Retirement Village Residents
The Courier Mail reports -
Read the full story here - https://www.couriermail.com.au/questnews/north/heartbroken-retirement-village-residents-wishing-to-die/news-story/db1f41bdfa5402c54296b2114f5746b8
"ONE of Australia’s largest retirement village operators Aveo Group has denied accusations of elder abuse against residents of an inner-Brisbane village.
Residents of Newmarket Aveo Village claim the company’s conduct over its planned redevelopment of their homes has left many of them “wishing to die”.
They allege Aveo Group turned their “quiet, happy, functional place” into a “nightmare retirement” that is like the “drip-drip-drip of Chinese water torture or the death of a thousand cuts”.
The company has denied the claims or any knowledge of allegations of elder abuse or exploitative conduct against it."
Read the full story here - https://www.couriermail.com.au/questnews/north/heartbroken-retirement-village-residents-wishing-to-die/news-story/db1f41bdfa5402c54296b2114f5746b8
Friday, 6 September 2019
Aged Gouging
Congrats, called it like it really is. A #retirementvillage business model financially and emotionally harmful to older Victorians condoned by successive state governments. The @DanielAndrewsMP and @MarleneKairouz government particularly. #vicpol @consumer_action @consumervic pic.twitter.com/nJaJ7bMzMB
— Les Scobie (@retvilldotnet) August 22, 2019
Freezing Newstart Deepens Poverty
"The freezing of Newstart Allowance (after inflation) since 1994 is contributing to a progressive deepening of poverty for people in households relying mainly on that payment. Their poverty rate rose from 61% in 1999 to 78% in 2015" https://t.co/ZVTxbfeOln #auspol #Newstart @smh pic.twitter.com/vsnqnFOho6
— Les Scobie (@retvilldotnet) August 8, 2019
Cruelty in Newstart Decisions
Everything you read about this #Newstart issue amplifies the political cruelty of current @ScottMorrisonMP @JoshFrydenberg government policy. https://t.co/GUyo4vSsLV #newstart @JasonFalinskiMP @SenKatyG #raisetherate #auspol
— Les Scobie (@retvilldotnet) August 7, 2019
Pensioners Lebelled Non Aspirational
Being on an Aged Pension or Newstart doesn't mean you're not 'aspirational'. Life can sometimes deal a cruel hand but that doesn't make you a sub species, not fit to share in a nation's wealth. https://t.co/9ESsk7r2lN #newstart @JasonFalinskiMP @SenKatyG #raisetherate #auspol
— Les Scobie (@retvilldotnet) August 5, 2019
Australian Society Unnecessarily Cruel re Newstart
There is a great deal of information confirming the political cruelty in refusing to increase the Newstart allowance. This is just part of it. #auspol #newstart @senbmckenzie #pensioners #raisetherate #NotaDoleBludger @InsidersABC @JoshFrydenberg @AlboMP @neighbour_s pic.twitter.com/7r3rp2MCh1
— Les Scobie (@retvilldotnet) August 3, 2019
Refusal to Increase Newstart Allowance Continues
There is a great deal of data that shows the reality of the political cruelty in refusing to increase the Newstart allowance This chart is just one of them #auspol #newstart @senbmckenzie #pensioners #raisetherate #NotaDoleBludger @InsidersABC @JoshFrydenberg @AlboMP @neighbour_s pic.twitter.com/oBslq4M4qU
— Les Scobie (@retvilldotnet) August 3, 2019
Political Reality of Newstart Allowance Refusal to Increase
There is a great deal of data that shows the reality of the political cruelty in refusing to increase the Newstart allowance This chart is just one of them #auspol #newstart @senbmckenzie #pensioners #raisetherate #NotaDoleBludger @InsidersABC @JoshFrydenberg @AlboMP @neighbour_s pic.twitter.com/cglxB1xCqE
— Les Scobie (@retvilldotnet) August 3, 2019
Political Cruelty in Refusal to Increase Newstart Allowance
There is a great deal of data that shows the reality of the political cruelty in refusing to increase the Newstart allowance This chart is just one of them.#auspol #newstart @senbmckenzie #pensioners #raisetherate #NotaDoleBludger @InsidersABC @JoshFrydenberg @AlboMP @neighbour_s pic.twitter.com/yfyPFSZyQx
— Les Scobie (@retvilldotnet) August 3, 2019
Political Cruelty in Refusal to Increase Newstart
There is a great deal of data to show the reality of the political cruelty in the refusal to increase the Newstart allowance This chart is just one of them #auspol #newstart @senbmckenzie #pensioners #raisetherate #NotaDoleBludger @InsidersABC @JoshFrydenberg @AlboMP @neighbour_s pic.twitter.com/xV5shAQBaE
— Les Scobie (@retvilldotnet) August 3, 2019
Reality of Diverging Retirement Village Capital Journeys
Reality of diverging capital journeys made by #retirementvillage operator and residents. NSW Gov't wants operators to repay 0% interest loans from residents 6 not 18 months after they leave. Industry crying ruination. @Kevinandersonmp @GladysB @mckay_jodi @NSW_FairTrading #nswpol pic.twitter.com/TztfhVQuiy
— Les Scobie (@retvilldotnet) August 2, 2019
NSW Retirement Village Reform
NSW Gov't seeks to make Retirement Village operators repay money borrowed from residents at 0%, 6 months after due date rather than 18. Industry crying ruination despite holding billions of retiree money at 0% cost. @Kevinandersonmp @GladysB @mckay_jodi @NSW_FairTrading #nswpol pic.twitter.com/Qk7ArTrQoE
— Les Scobie (@retvilldotnet) July 31, 2019
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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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