RVA NEWS MONITOR No.31 - June 9, 2009
Welcome to the RVA News Monitor. Download
this page as
RVA Web Page members’ area and blogThe new RVA members’ area and blog are live and ready to go. The members’ area features content exclusively for RVA members’ including; conference and seminar notes and accreditation documents. To participate and or view, you will need to register: Register here The RVA Blog is a space where members can discuss current issues surrounding the retirement village industry. We hope that you take part by sharing your opinions, ideas and information. Visit
the Blog here:
NSW Tribunal decides on allocation of costs between villagesby Arthur Koumoukelis Do you have an opinion on this or a question? Discuss
it here. With the continued growth and consolidation of the retirement village industry, it is inevitable that more and more operators will operate across state boundaries and multiple facilities. They will as a result, continue to incur costs that relate to the establishment of the portfolio but at the same time generate benefits for residents through economies of scale, branding, security and choice. At the same time, residents have been concerned to ensure that only costs relating to their village may be passed on to them. These costs are typically in the nature of administration costs or imposts such as payroll tax. Both affect for profit and not for profit operators. These matters have given rise to much discussion between operators and residents particularly as reviews of the legislation have occurred as has been the case in New South Wales. Most relevantly, up until now, there have been conflicting decisions in Queensland and New South Wales as to an operator’s entitlement to recover the impost of payroll tax from residents as part of the general services in their maintenance charges. Queensland cases say you can, New South Wales decision said you could not. Both operators and residents have been waiting for clarification as to operation of the relevant Retirement Villages Act to explain the position and provide guidance. On 21 May 2009, the New South Wales Consumer, Trader & Tenancy Tribunal handed down its decision in the matter of Australian Retirement Homes (No 2) Pty Ltd v Minkara Retirement Villages Resident Committee RV 08/41351 which has provided clarity for all parties as to the principles involved in incurring and allocating costs across numerous facilities. Gadens Lawyers acted for the operator in the case. That decision
has brought the
New South Wales
position in line
with the Queensland
position to confirm
that the impost
of payroll tax
that was included
by the operator
in its statement
of proposed expenditure
for the financial
year ended 30
June 2009, could
form part of
the statement
of proposed expenditure. The principle that is relevant to both residents and operators is that it confirms the Retirement Villages Act and Regulation is structured to ensure transparency and fairness to both in that the Act envisages a person may be the operator of more than one village and can apportion the expenditure between the villages as long as the method of calculation of apportionment is disclosed. In the particular case, the Tribunal accepted that the obligation to pay payroll tax as a result of the corporate structure of the applicant to be an item that can be recurrent charge in respect of wages and salaries and part of the proposed expenditure. Though the case dealt predominantly with payroll tax, it assists the industry to emphasise that the Act does work to confirm such costs can be passed on but in doing so, ensure transparency of information to residents as to the costs of living in the village. Two recognised in Queen’s Birthday honoursThe RVA congratulates members Russell Halpern and Ray Fitzgerald who were each awarded the Order of Australia in the Queen’s Birthday honours list. Mr Halpern, a life member of the RVA, received his award for service to the community through aged care facilities and programs. Mr Fitzgerald received his honour for service to the community through aged accommodation and care facilities and programs. Both men are part of the St Ives Group in Western Australia.
RVA people in profile
In this edition
we meet Aevum’s
Sydney Sales
and Marketing
Manager Jill
Fellowes who
is managing to
produce outstanding
results despite
the economic
climate. Aevum
is listed on
the Australian
Stock Exchange
and is the largest for-profit owner,
operator and
developer of
retirement villages
in NSW. Q: How
do you talk to clients
about the DMF? Q: Has
the current financial
climate affected your
sales? Q: What
is it that most of
your clients are looking
for in a retirement
village? Depending on age and health, villages with aged care facilities provide the level of care, comfort and security many prospects are looking for as they consider their changing needs and those of their partners. Easy access to transport and medical facilities are highly desirable as are social activities that cater for diverse interests and the need for companionship. Q: Do you
find the decision to
move into a village
is usually a family
decision or one left
to the residents? Q: Have
you heard people say
that they wish they
would have made the
decision to move into
a retirement village
earlier? Q:
What does your
role involve
on a day
to day basis?
Q:
What has
got you excited
at the moment
re the industry? The challenge and excitement for marketers is to assist in the new product development process that will deliver retirement communities that satisfy their needs. In addition we must re-evaluate the ways in which we communicate to this target market to capitalise on these opportunities. Q: What
do you enjoy
doing (e.g.
hobbies sport)
that people
might be
surprised
to find out
about you?
Village in focusA village that offers residents the convenience of living close to the city with the serenity of a country atmosphere is what has attracted many residents to Arcadia Waters on the Canning River in South East Perth WA. According to the village website www.arcadiawaters.com.au: “Arcadia Waters is a new and innovative concept in over 55’s community living. Designed and built on a resort-styled theme, life at Arcadia Waters is like being on holiday every day of the year. The first Arcadia Waters Resort on the Canning River in Maddington, just 30 minutes from the centre of Peth in Western Australia was completed in October 2005. The combination of a wide choice of spacious homes surrounding luxurious and world-class resident facilities, Arcadia Waters provides everything you need to enjoy a healthy, active and secure lifestyle.”
n this edition of the News Monitor Village in Focus we meet Geoff & Ann Hornibrook Village Managers Arcadia Waters Maddington in Western Australia. What were
the circumstances
that brought you
into the retirement
village industry
and how long have
you been working
in it? We are both very people’ oriented, and we could see that in this role we could contribute our combined skills, whilst achieving that change in our own lifestyle. We have been here for 16 weeks now, and we’ve loved every minute of it. How do you
divide tasks between
yourselves, as a
husband and wife
team?
What do you
feel are the most
attractive features
about the kind of
lifestyle enjoyed
at your village? We really enjoy the fact that we are now involved within a community where you not only know your neighbour but everyone else around you, so life is full of friendship and security. We find that it’s a wonderful way to live for residents and ourselves. What have
you learned from
the residents at
your village?
How do you
help new residents
adjust to life at
Arcadia Waters Maddington? Don’t forget,
up until the latest
new resident, we were
the “new kids on the
block”, so we understand
this is the easiest
way to integrate into
the community. It’s
really the combination
of taking part in activities
that you’re interested
in and making friends
along the way. What have
been some of your
greatest challenges
at Arcadia Waters
Maddington? This is not only
our vocation, but also
our lifestyle as well,
as living on site gives
us the added insight
into the needs of the
village and its residents.
Welcome our newest membersThe RVA is proud to welcome our newest members, however, that doesn’t mean we’re forgetting our existing members. Please contact our communications manager Chip Henriss chip@rva.com.au to submit your people in profile, new appointments or opinion piece. Associate Member
Thomson Playford Cutlers is a progressive, full service, commercial law firm with offices in Sydney, Adelaide and Melbourne. There are more than 45 Partners, 150 other lawyers and more than 350 staff. For more than 160 years, Thomson Playford Cutlers has built and maintained client relationships based on trust, respect, loyalty and a commitment to delivering the highest quality legal services. Contact:
Upcoming EventsFurther details and contact information can be found on our Events Calendar.
For further information or to make comment on the above items, please email communications@rva.com.auThe RVA News Monitor is a weekly feature on the RVA website, and will provide updated stories on issues involving the retirement village industry. The RVA welcomes story or issue ideas to be included in the News Monitor, or comments or opinions on stories featured. |
pdf
162kb
Thomson Playford
Cutlers