Anne Stanley (Werriwa, Australian Labor Party) Share this | Hansard source

I thank the member for Lalor for moving this motion and for the opportunity to speak on behalf of the 184,000 Australians who currently live in retirement villages, as well as the many thousands more considering such a move. As highlighted by my colleagues, the number of older Australians choosing to live in retirement villages continues to rise, with approximately 5.7 per cent of Australians over 65 currently living in a retirement village. As these numbers increase, it is important that governments consider the legislative framework that governs their operation, to ensure that the rights of residents are protected, that people can retire with dignity and that the retirement industry is free from exploitation.

In my electorate of Werriwa we've seen the development of new retirement villages in the new land releases on the city outskirts, as well as a number of villages throughout the electorate. While a number of these retirement village operators are well respected throughout my community for their work, sadly, a number of constituents have reported to my office that they fear raising issues with the village operators, owing to the mistreatment of other residents who've spoken out. Not only have we heard about complex contract and exorbitant exit fees charged by some operators but we have also heard that, in some retirement villages in my electorate, operators have tried to force residents to choose a service provider for the NBN and their landline phones that is owned by the retirement village operator themselves. Under the New South Wales Retirement Villages Act 1999, the operator of a retirement village must not restrict the right of a resident of a village to purchase goods and services that a person hasn't chosen, let alone restrict a resident to choose a provider owned by the operator.

What makes matters worse is that, because of the excessive exit fees charged by some operators, residents can find themselves unable to afford to leave a village, while being forced to live under terms and conditions of a contract they didn't fully understand because it was designed to be opaque and confusing. As noted by the chief executive of the Consumer Action Law Centre, Gerard Brody, in relation to the Aveo contracts discussed in the Four Corners program, not only are they over 120 pages in length but they are also dense, they are hard to understand and they are legalistic. It's not good enough that residents are asked to sign contracts that deliberately obfuscate fees and charges, which most reasonable people would consider excessive. It is also completely unacceptable that the drive for profit by some parts of this industry has been led by unethical behaviour and the exploitation of thousands of residents who were signed up with providers.

On behalf of all residents in Werriwa living in retirement villages and all those across the country in the same position, I call on the Turnbull government to urgently commit to the development of a national regulatory framework for the retirement village sector, including simplification of contracts and strong consumer protection. While I and my Labor colleagues are pleased that Turnbull government has acted on the member for Maribyrnong's call for an immediate review of retirement living contracts with consumer affair ministers from each state and territory, it is important that that push for reform doesn't end at the COAG meeting scheduled for 31 August.

As highlighted by the practices exposed in the Four Corners program, there's an urgent need for a national regulatory framework for retirement villages to protect the rights of residents and hold unscrupulous operators to account. The Commonwealth must work with all of the states and territories to make this a reality. Consumer protections in the retirement villages will not only protect residents but also ensure that those operators who are doing the right thing by their residents are not forced to compete against ASX-listed corporations who are more concerned with profit margins than the dignity of retiring Australians.

Labor is committed to ensuring that all Australians have choice, control and confidence in the decision they make in retirement. Our communities should be age-friendly places where older Australians are supported to live independently, to contribute to the community and to age with dignity. I look forward to continuing the campaign for stronger consumer protections and proper regulation of this industry, and I once again thank the member for Lalor for moving this motion. I commend the motion to the chamber.

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