The body representing the retirement villages industry accepts the sector can make improvements, but warns any change in legislation could lead to unintended consequences.
The sector is ready to work with the government around consumer protections, but is mindful of over-regulation, a spokesperson says. Photo: 123RF
It comes on the back of calls from residents to review the 20-year-old legislation governing the sector.
The Retirement Villages Association president Graham Wilkinson said the sector could improve around some disclosures or deciding when fees stopped due to the death of a resident or a person moving to care.
He said the sector was ready to work with the government around consumer protections, but it was mindful of over-regulation.
"What we don't want to see is that overreach and unintended consequences, whereby there's change to the commercial terms and actual model itself.
"When you're investing for five, 10, 15 years, you need some certainty and you need to know in 10 years' time when you're looking forward to receiving some return - as one would expect - that suddenly it wasn't whisked away from you because of a change of rules."
Wilkinson acknowledged improvements could be made around communicating disclosures.
"When you move to a village, it's going to be the last thing you ever do. We're going to look after you for the rest of your life ... that's accepted by those who move to villages.
"But it does mean that if there are changes or if you're going to make changes you need to understand ramifications before you move," he said.
Examples included changing units, or when fees stopped because of the death of a resident or ill-health forcing them to move to a care home.
Wilkinson said there was no mischief involved, but it was vital that everyone had a clear understanding around the rules.