‘Weaponised’: How a retirement village rate rise in Cairns could hurt global investment groups and multinationals

A Cairns councillor has challenged the city’s retirement village owners to absorb any future rate hike rather than passing the cost onto elderly pensioners and seniors living on the poverty line.

Deputy mayor Brett Olds says retirement villages have the option to pay a proposed rate rise themselves, or pass it onto its elderly residents instead. Picture: Samuel Davis

A Cairns councillor has challenged the city’s retirement village owners to absorb any future rate hike rather than passing the cost onto elderly pensioners and seniors living on the poverty line.

But the Retirement Living Council’s executive director Daniel Gannon has argued that costs to run and maintain communities must be shared by residents despite many operators lodging sizeable profits.

Deputy mayor Brett Olds defended the council’s proposed reclassification of land-lease communities which could increase fees by more than 800 per cent for seven retirement villages based in Cairns.

The Division Nine councillor argued that the owners had a choice to cover the expected rate rise, rather than forcing elderly residents living in around 769 dwellings to foot the bill.

“We get it. It’s really easy to pick on the council,” the northern beaches councillor said.

“But some of these landowners are huge multinationals and others are big healthcare corporations, very profitable ones.

“So these seven owners have got the option. They can pass it on if they want or they can absorb it.”

Retirement Living Council executive director Daniel Gannon says a rate hike on retirement villages can only hurt seniors’ quality of life. Picture: Jeremy Piper

Imposing an expected $300 rate rise per year on senior citizens during a cost-of-living crisis was simply “bad policy”, Mr Gannon said.

“The Council has sought to exponentially increase these costs, without any understanding or regard of the financial models underpinning retirement villages,” he said.

“This is reckless fiscal management and shows the council does not understand the different communities within their electorates, or consider the impact of their decisions on vulnerable members of their community.”

Cairns retirement village residents protested Cairns Regional Council’s proposed change to the zoning of their general rates, which will increase annual costs by 800 percent. Picture: Brendan Radke

In turn, Mr Olds accused lobbyists of “weaponising” seniors against the council, using their stories of hardship to protect their own bottom lines.

Additionally, the northern beaches councillor said a rates spike in Cairns could trigger a domino effect across Australia, with other councils imposing higher fees on similar land-lease communities.

“That’s their concern because it realistically could happen,” he said.

“The reason they’re coming at us so hard is because they want us to wobble and back down.

“We’re being painted right now as the big bad wolf.

“Their fear will be, if this council goes through with it, all the other councils will … but we’ll always try to do the right thing for the right reason.”

Cairns councillors and executives have debated the proposed rate hike on retirement villages extensively for months. Picture: Brendan Radke

Regardless of whether the retirement village residents or owners fork out for steeper fees, elderly pensioners stand to lose.

“These people are hurting and have genuine concerns about how they are going to pay for essential items like food and medicine,” Mr Gannon said.

“For the council to infer these stories are weaponised speaks volumes to their motivation of self-interest and lack of care and respect for the elderly Australians within their communities.”

Many retirement village operators had significant financial means, assets and influence, a council spokesman said.

“For example, the council rates the owner of the Parks Retirement Village, Aveo Group, who were reportedly purchased by Brookfield global investment group for $1.3 billion in 2019,” the spokesman said.

“The proposed change would align these properties with other multi-dwelling properties in the region.”

The council will hand down its budget later this month.

Originally published as ‘Weaponised’: How a retirement village rate rise in Cairns could hurt global investment groups and multinationals