Source: Te Ara Ahunga Ora Retirement Commission
Te Ara Ahunga Ora Retirement Commission welcomes the Government’s decision to progress long-awaited reforms to the Retirement Villages Act 2003, following five years of sector review, public consultation, and advocacy for improved protections for residents.
Retirement Commissioner Jane Wrightson says, “This is a landmark moment for older New Zealanders and their families. The Retirement Commission has worked for many years to highlight the need for fairer, clearer, and more balanced rules in retirement villages.
“We are pleased to see the Government’s commitment to modernise the Act and rebalance the rights of residents and operators.”
The Retirement Commissioner first prompted calls for a review of the legislation following the release of a white paper published in 2020 and again in 2021 with the response to submissions it received.
The then Associate Minister of Housing and Ministry of Housing and Urban Development accepted the recommendation that a full review was necessary and overdue. The Ministry subsequently issued a discussion paper in 2023, which received more than 11,000 submissions.
A broad package of reforms is proposed, addressing three priority areas for residents: moving-in, living-in and moving out phases at retirement villages.
Moving in
Improve transparency and disclosure: Legal documents will be made more user-friendly and accessible. Operators must publish current disclosure statements online and strengthen obligations to ensure information is not misleading or deceptive.
Unfair contract terms: New regulations will prohibit certain terms in occupation right agreements, protecting residents from unfair contractual practices.
Living in
Chattels and fixtures: Operators will be responsible for the maintenance, repair, and replacement of operator-owned chattels and fixtures, providing residents with certainty and fairness.
Dispute resolution: A new, independent, and user-friendly dispute resolution scheme will be established, to simplify and streamline disputes processes.
Moving out
Fairer exit process: Operators will be required to repay residents’ net termination proceeds within a 12-month statutory timeframe, with interest payable after six months. An application scheme will allow early release of funds for residents with specific needs, such as moving into aged care.
Weekly fees and deductions: will stop accruing immediately after a resident vacates their unit, aligning with best practice and ensuring fairness.
“Ultimately, these reforms are about ensuring dignity, fairness, and peace of mind for those choosing retirement village living,” says the Retirement Commissioner.
“The changes reflect the voices of residents, the commitment of operators, and years of collaborative work. We look forward to seeing a retirement village sector that continues to thrive, innovate, and put people first.”
The Retirement Commission will continue to work with the Government, Ministry and sector stakeholders to promote awareness of the changes and support residents through the transition. Financial exit changes will not be retrospective. The application scheme, interest payments, and mandatory repayment timeframe will only apply to ORAs signed one year after the new Act is passed.
The proposed Retirement Villages Amendment Bill is expected to be introduced by July 2026, with further opportunities for public input at select committee stage.
MIL OSI
