- Retirement village residents to benefit from new laws starting 1 September
- Time limit put on exit entitlement payouts with option to direct them to aged care costs
- Five-stage roll-out includes budget consultation and new closure rules
- Cook Labor Government delivering sensible and effective law reform
The Cook Labor Government’s retirement village reforms come into effect next month with the introduction of important financial protections for residents including strict time limits on accessing their exit entitlements.
From 1 September 2026, operators will be required to pay exit entitlement payments within 12 months of a resident leaving a village. This will give residents and their families greater certainty and reduce delays that can affect their transition to new accommodation.
About 25,000 Western Australians live in retirement villages and as the population ages that number is expected to grow.
Under the changes, eligible residents will be able to request that part of their exit entitlement be paid directly towards aged care daily accommodation payments. This is designed to ease financial pressure when residents move from a retirement village into aged care.
The financial reforms will be accompanied by these new requirements:
- resident consultation before operators finalise draft annual budgets;
- the introduction of Rules of Conduct setting clear behavioural and professional standards for operators, employees and residents; and
- retirement village closure rules, including mandatory termination plans approved by the Department of Local Government, Industry Regulation and Safety’s Consumer Protection division.
The measures represent the first stage of a reform package being rolled out in five stages over two years, giving operators and residents time to prepare for the new requirements.
Later stages will introduce new disclosure obligations, a public retirement village register so prospective residents can compare facilities and strengthened capital works expenses requirements.
The government consulted widely with peak bodies, operators, resident organisations and other stakeholders. Their feedback has shaped reforms that strengthen consumer protections while supporting confidence and stability in the retirement village sector.
Further information about key changes in the legislation can be found here: www.consumerprotection.wa.gov.au/retirement-village-law-reforms
As stated by Commerce Minister Dr Tony Buti:
“From 1 September, residents will have clearer financial protections, particularly around exit entitlements and moving into aged care.
“The changes will make a real difference for people transitioning to new accommodation.
“These reforms also introduce stronger consultation requirements and clearer operational standards for operators, ensuring retirement villages remain fair, transparent and wellmanaged.
“It’s another way the Cook Labor Government is putting Western Australians first and supporting retirees to make informed decisions.
“By phasing in the reforms over two years, we’re giving the sector time to adjust while delivering longoverdue safeguards that support both residents and operators.”
