Why was one year settled on as timeframe for mandatory repayment, after a retirement village unit is vacated?

Answer

Cabinet agreed to a 12-month maximum repayment timeframe (MRT) as part of a package of other changes to the retirement village legislative regime to increase consumer fairness for residents while supporting the sector to grow and innovate. The MRT balances the interests of residents and operators by providing certainty and managing costs and risks. Cabinet also agreed to introduce an application scheme for residents who need earlier access to their funds (including to move into aged residential care) and interest payments from six months after ORA termination to further incentivise prompt repayment to and it make it fairer for residents.