Minister responds to Aveo scandal

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Yesterday, the Minister for Aged Care, Ken Wyatt, issued a statement on retirement homes regulation saying that behaviour that leads to the exploitation of elderly and vulnerable Australians will not be tolerated by the Turnbull Government.

Retirement village operator Aveo has been accused by residents of bad business practices including “churning, gouging, safety issues and misleading marketing”.

“The health, safety and wellbeing of older Australians is of paramount importance to the Government, and we will be taking meaningful action to ensure this kind of behaviour is not tolerated, is dealt with accordingly, and that the necessary regulatory framework is in place to prevent it from happening,” said Mr Wyatt.

In response to the recently highlighted cases, the Government will consider all the recommendations of both the 2007 Parliamentary inquiry, Older people and the law and the 2011 Productivity Commission review, Caring for older Australians.

“Older Australians should be able to feel safe and secure in their aged care, and not be subjected to mistreatment or abuse of any kind,” said Mr Wyatt.

What do you think? Is the Federal Government doing enough in response to the highlighted cases and allegations about current practices? Should we be calling for a royal commission into the retirement homes industry?


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Total Comments: 69
  1. 0

    They will consider two previous reviews!!!!! One from 10 years ago and one from 6 years ago.

    What have both sides of the house been doing with these reviews in the intervening years and does “will consider” mean anything other than leave it alone for a month or two and the issue will go away for another couple of years.

    Do these cretins earn their wage by actually doing something for the good of the country and their constituents or cooking up schemes to benefit themselves?

    • 0

      Simple answer about what they have been doing. PROTECTING THEIR STREAM OF DONATIONS! Exactly what we have come to expect from this government.
      These are the businesses that the government wants to give billions of dollars of tax breaks to.

  2. 0

    “exploitation of elderly and vulnerable Australians will not be tolerated by the Turnbull Government.”
    Are you kidding. The government knows what is going on. Both sides of politics know what is going on. Have for decades but nothing ever done except talk when the media runs a story and I doubt whether this time around will be any different.
    There is an election coming so perhaps there will bit of tinkering around the edges…..but business as usual likely.

  3. 0

    I would had hope by now all these various contracts would past Federal ,State and Law Society serenity.
    Far more Pro Active Measures from ALL Federal/State and Law Society most of the entrants to the Retirement village’s would had a Law professional to check the The Contracts Out.
    So what where they paying for????????????

    • 0

      As I understood from the 4 Corners programme the solicitors checked that the contract terms were legal NOT that they were fair to the client.
      It seems to me the solicitors consulted are as much to blame as the owners for the problems suffered by the elderly in the Retirement Villages.
      It is a shame all the people who have been ripped off cannot get legal aid to take out a class action against the Villages.

    • 0

      I haven’t any Dealings with these sort of contracts.
      The one’s where I used a Solicitor would have highlighted and made us to intial. If they Thought was bit to much the vendor’s way would strike it out and intial.

  4. 0

    Politicians. If it was a report/review of their pay rise then they would act as swiftly as Usain Bolt but, for this fool Ken Wyatt to tell us he’ll consider reports from 10 years and 6 years ago is treating us with total disdain. We’ll be waiting at the ballot boxes Ken and Malcolm.

  5. 0

    Yes, there should be a Royal Commission into this industry. The rate at which it is growing and the amount of new retirement villages springing up all over the country is indicative that it is a license to get rich quick from these developers. Whilst it is important older people need good, safe, easy to manage accommodation in their later years, it is vital that their interests are protected from greedy, gouging developers. I personally looked into the possibility of moving into one of these type of establishments when widowed, however, came to the conclusion that many of them were just a rip off, with their exit, refurbishment fees and weekly service fees that increase yearly. There are some genuine ones out there, often freehold, with limited recreational facilities and lower weekly service fees. It really pays to do your homework and don’t get taken in with all the fancy facilities, many of which you probably won’t use anyway. Personally, I think the best option is to downsize to your own smaller manageable place, in a local community that has many options and activities for Seniors, where no-one tells you what you can or not do and you personally get all the capital gain.
    “That’s Freedom” in my opinion.

    • 0

      The good thing is that only around a quarter is represented by the scumbag company and ones like it as a whole. Most are not for profit and, I assume, not involved in asset stripping elderly people.
      As with all contracts READ THEM. Only one person to blame if that does not happen.

  6. 0

    As usual it takes a 4 corners tv, programme to perhaps stir some action, being reactive again.

    will look at a report done in 2007, ? only 17 years ago, its e embarrassing.

    • 0

      Criminal behaviour is normally hidden from view. It takes a media report to expose it. What people should be asking is why not on Seven and Nine? It always seems to be the ABC which puts the (unwelcome) truth to the people. So whose interests are the major media outlets in their batting for?

    • 0

      You must be the sort of accountant AVEO seeks out kevinc.

      2007 to 2017 is 10 years not 17! 🙂

  7. 0

    Take some action please. I looked at my wife and I retiring to a Village but when we realised the costs that we would bear both before – during and after our residency we felt that it was too much slanted to the operators. Unfortunately this applies to both private developers and church operated sites. When I questioned the high costs of selling a unit after we passed on, I was told by one sales person “well it really is not going to worry you then is it.”

    As a further aside to the Census, no wonder interest in religion is waning, churches are generally no longer there to offer help and assistance at a time when needed by the parishioners, but generally are run as a business with the bottom line the main concern.
    Still I suppose that they have to make money to pay for the claims on them by victims of abuse.
    Just get out there and do something to restrict their claims on estates after people have passed on and to see that residents are treated fairly and with dignity.

    • 0

      My sympathies are with Dougie and his wife, but there are some marvelous Church sponsored homes. My mum in law spent nearly a decade in one in Hammondville and we couldn’t be happier with the care she received.
      We lived interstate, but visited at least monthly and at odd hours particulalrly if I was on business in Sydney. We always found the staff welcoming, professional and totally caring.
      Mum sadly sustained Alzheimers in her later years and the level of support for her remained as good as ever.
      Cheer up Dougie there are some residential care places that really do care, I hope you find one.

    • 0

      My wife told me she listened to Hadley talking to people about this industry yesterday.
      Apparently there are some operators who take NIL when you pass on and give your descendants market value for the unit and the units are on freehold title rather than leasehold. A win win. As always shop around and maybe ring Fair Trading to get a pointer in the right direction.
      Hope you make a wise choice dougie.

    • 0

      miKER I think you are referring to an Aged Care Home where care is supplied to the Residents. This article is about Retirement Villages which are quite different.

    • 0

      Thank you all for your wishes and support. We have made the decision to remain in our home with our friends about us and with some support in our home chores and transport etc from Aged Care and we will look for upgrading as required.
      To us this seems to be the best option and as we spend our later years together in surroundings that we favour and thankful to receive some help with our home maintenance etc. That way we are beholden to no-one and fortunately we have family who would love to take us in and care for us. This we would not do as they have their lives to live.

  8. 0

    Governments will be aware of and condone these business practices. If not, they have not done their job. The Minister for Aged Care is paid a salary and benefits, for what? The Minister is merely trying to save face and carry on regardless. It is all in the name of Capitalist Democracy, where anything goes, so long as you stay under the radar. Advance Australia Fair, the greatest con ever imposed on the Australian people.

    • 0

      Governments understand and know what is happening. Lateline reported that AVEO had made a $1 million donation to the Liberal Party over a few years. So the government has been bribed again. Same deal with the coal industry? What about the Greyhound Industry? Methinks there is a pattern of elected corruption appearing here.

  9. 0

    I am glad to see you and the press have run with this to protect us all from these retirement scammers.

    • 0

      Notice the so called free press has sen nothing. It was the so called Lefties in the ABC, who as usual broke the news that effects so many.

      If it wasn’t for the ABC, we probably would never have seen just how bad it was. Might have something to do with the amount of advertising these companies spend with the commercial stations, you can do just about anything and slide under the radar as long as you have enough money to spend on advertising.

      So often it is not until the ABC breaks a story that the commercial networks are forced to take them up.

  10. 0

    Why has it taken this long for this minister to get off his arse and look at a report that is ten years old?

    • 0

      Because his Party and others are accepting money from big business and the rich. That in any other forum is called corrupt behaviour.

    • 0

      Hang on, if the report is ten years old that makes it that it came out in 2007, Wasn’t the ALP elected that year? That gives six years for the ALP to act on it, and another two years for them to act on the Productivity Commission’s report. Current Government has had four less than four years. I think that Arthron may be putting all of the blame on the current minister for some reason.

      Disappointed that Mick has joined him and not corrected him.

    • 0

      What part of the year did the report come out and how did that relate to the election? Let’s try and keep ,petty politics out of this, we all know that it would not be unusual for a report to be held back until after an election in order to provide a nice little booby trap for a new party to find.
      It is a disgrace for all political party’s to have put this in the too hard basket. I am for one am sick and tired of hearing governments trying to put the woes on the country on to the previous government, if it was a private company and a CEO tried that on, he/she would be sacked in the first year, why are we holding our so called leaders to a lessor standard.

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