Owners of freehold retirement village units in Queensland will
On 3 April 2019, the Queensland Parliament passed amendments to the State’s Retirement Villages Act, which apply to around 2,200 freehold owners of retirement village units.
Until the Parliament’s approval of the legislation, there had been some doubt that freehold unit owners were eligible.
The legislative change means that
“Seniors leaving retirement villages should not have to wait
“This change will provide Queensland seniors with peace of mind in their retirement years.”
Heated Parliamentary debate
During a Parliamentary debate, Opposition MPs opposed the legislation, stating that it could cause hardship to retirement village operators, particularly ten freehold villages across the State
Burleigh MP Michael Hart said he supported large corporate retirement village operators being forced to pay a mandatory buyback, but not resident-owned villages.
“We are talking about
“How are they going to find the money?”
Mr de Brenni responded by saying retirement village operators facing undue financial hardship could seek an extension of time from the Queensland Civil and Administrative Tribunal (QCAT).
“In these cases, QCAT must take into consideration whether an extension would be unfair to the former resident,” he said. “We’ve worked hard to make sure there is a fair balance between industry viability and consumer protection enshrined in this legislation.”
“(This will) help them understand their obligations, assist them to go to QCAT if required,
Freehold village residents make up about seven
Trends across Australia
The concept of mandatory retirement village unit buybacks is spreading across Australia.
Separately, in 2016, South Australia introduced mandatory buybacks.