The government initially stated that there would be no law changes until the next parliamentary term, with any potential changes not taking effect until 2029. This timeline means that many current residents would not benefit from any reforms.
In response to this issue, I recently introduced a bill in the parliamentary biscuit tin ballot. This bill would require retirement village operators to repay capital sums within three months of a resident exiting the village or moving between units or levels of care. The first 10% of the repayment would need to be returned within five working days.
Associate Housing Minister Tama Potaka mentioned in the NZ Herald that he is working on laws that could require or incentivize payments, potentially introducing them to the House early next year. He suggested that my bill may not be necessary, but his use of the word “incentivize” raises concerns that the status quo may continue, albeit with market interest rates.
Operators currently hold all the power in these situations, with residents having little say in how their money is used. While operators argue that small villages would suffer financially, this has not been the case in New South Wales where a similar rule has been in place for 26 years without any negative impact on operators.
Some residents can access their repayment money through hardship applications, but my bill aims to eliminate the need for such measures. Instead, residents would have the option to lend their money at attractive interest rates, giving them control over their finances.
Minister of Seniors Casey Costello has stated that most fees are repaid around nine months, deeming this acceptable. However, many village residents disagree with this timeline and are advocating for quicker repayments.
I have reached out to MPs from all parties, including government members, urging them to support my bill. There is an opportunity for NZ First, a party known for advocating for seniors, to help push this bill through and enact change during this parliamentary term.
It is time for the government to prioritize the needs of retirement village residents and ensure they have a say in how their money is handled. Watch this space for updates on the progress of this important issue.
