Zero Functionality for Village Deferred Management Fee

The Jacinta Allan Government new definition of the 'Deferred Management Fee' as a fee for 'services' has ZERO functionality. 

This change is from the new proposed Victorian Retirement Villages Act.

ZERO functionality comes from the fact that village residents already pay 100% of the cost of 100% of the management services that Victorian retirement village operators claim and charge for as necessary to successfully operate the village.

Under Australian consumer law an operator cannot charge for ‘services’ where 1. there is no intent to supply or 2. no supply has in fact been made.

Competition & Consumer Act 2010
Chapter 3. 3-1 Unfair practices. Division 1. 36 - Wrongly Accepting Payment.

36-1 A person must not, in trade or commerce, accept payment or other consideration for goods or services if, at the time of the acceptance, the person intends not to supply the goods or services.

36-4 A person who, in trade or commerce, accepts payment or other consideration for goods or services must supply all the goods or services:

WHAT ARE THE NEW FEES?

HOW CAN THEY BE SUBSTANTIATED?

What is Wrong with Retirement Villages

What is wrong with retirement villages. 

Contemplating moving into a retirement village, these people have an insight and they don't have a conflict of interest.

Look Before You Leap Into Retirement Villages

When it comes to Victorian retirement villages the old adage of Look Before You Leap has never been more true. 

The new Jacinta Allan, Nick Staikos, Consumer Affairs Victoria operator centric 2025 version of the retirement villages act makes it even more imperative.

Research, research, research, the best outcome may be to not leap at all.

 

Retirement Village Residents a Frog in Boiling Water

Victorian retirement village residents are as vulnerable as a frog in boiling water, they don't know what is really happening to them.

The reality is a slow transfer of their hard earned capital wealth, not to their families, but to greedy corporations. Then they have to rely on the Australian taxpayer to fund their aged care costs.

The Victorian Labor government has just written an operator centric legislative framework to support this process.

Retirement Village Demonstrably More Expensive Than Residential Tenancy

Victorian Retirement Village residents can pay multiple times the cost of a residential tenancy for what is the same primary product, residential accommodation. Retirement villages are all smoke and mirrors hiding the true cost. 

Property ownership through retention of the family home or a true Body Corporate retirement village the only defence. 

Retirement Village Growth and Innovation in Profits

The Victorian Minister for Consumer Affairs has introduced the new Retirement Villages Act as to 'provide for future growth and innovation in the retirement villages sector'. 

Of course village residents based on their lived experience in a village see it as code for 'to provide for future growth in profits and innovation as to how that can be achieved'.

Retirement Village Fox in the Hen House by Government Decree

The new proposed Victorian Retirement Villages Act 1986 has put the Fox in the Henhouse by government decree. 

As though written by operators for operators, brushing residents aside in their insatiable pursuit of even bigger profits.

A problem with the new Victorian Retirement Villages Act

A problem with the new Victorian Retirement Villages Act.

There is a problem with the new Victorian Retirement Villages Act, the Jacinta Allan Labor government allows village operators to abuse the statutory term 'adjusted maintenance charge'. Village residents are misled into believing that the 'adjusted maintenance charge' is the 'maintenance charge' for the previous year adjusted for cpi. This is incorrect and residents are overcharged tens of thousands of invalid fees.

By statute the 'adjusted maintenance change' is the maintenance charge' in the very first year of the village, adjusted for cpi in each year thereafter. There is an easy fix just change 'adjusted maintenance charge' to 'BENCHMARK FEE'.

Allan Labor Government moves against Retirees

Sting in the tail for Victorian retirees as the Jacinta Allan Labor government moves to enhance profits of retirement village operators. 

Hollow claims of striking a balance between facilitating industry growth and innovation with retirement village resident consumer protections.

Retirement Village Residents Trapped Financially

The realisation of far to many retirement village residents and it comes too late for anything to be done about it. 

Financially trapped into the village due to the business model enforced by the Jacinta Allan Labor government legislation.