Christopher Luxon teasing 'surprise' retirement village policy

Author: Julia Gabel,
Publish Date: Wed, 19 Aug 2026, 1:59pm

National leader – and Prime Minister – Christopher Luxon speaking to reporters at Parliament. Photo / Mark Mitchell

National Party leader Christopher Luxon is teasing a “surprise” retirement village policy amid debate over how swiftly retirement organisations should repay former residents after they have departed their unit.

Law changes introduced under the coalition Government include requiring operators to pay outgoing residents (or their estates) their refund sums within 12 months of the tenancy contract being terminated.

This goes against official advice, which recommended a nine-month period, as revealed by the Post.

An audience member at a public meeting in Avalon last night said he was “saddened” the Government had opted to stick with the 12-month period over a shorter period.

Luxon acknowledged retirement village residents often had “quite punitive settings” for their units – and “we’ve been looking at that issue over the last two-and a-bit years”.

“We have actually had some quite good feedback from folk like yourself during the select committee process.

“If you can just bear with me for a few more weeks ... we will come out with our National Party position and it might even surprise you a little bit. I won’t say any more than that – there’s media in the room.”

Luxon said there needed to be “balance” and that it was “very easy to come out on the side of the village residents”.

Prior to the law change, there was no mandatory period. Labour is promising to introduce a three-month repayment period if it is elected.

People on the other side of the debate say tighter repayment periods could impact the financial viability of retirement villages, which could potentially lead to higher fees for residents.

It comes as a fresh report on the aged-care sector by a ministerial advisory group recommended owners of new rooms should get a 13.8% increase in Government residential care payments. This is a subsidy paid by Work and Income to help residents who meet the asset test cover their care.

The group was chaired by former Labour Health Minister and leader David Cunliffe. The report included 40 recommendations to improve the health of the sector – and warned if no change was made, the projected capacity shortfall would reach more than 9000 spaces by 2037/38.

“New Zealand’s aged-care system is at a turning point. Rapid population ageing, increasing care complexity and long-standing system fragmentation are placing growing pressure on services that were designed for a different era,” the report said.

“While many older people are supported well, current settings will not be able to meet future demand safely, equitably or sustainably without major, deliberate system change.”

Julia Gabel is a Wellington-based political reporter. She joined the Herald in 2020 and has most recently focused on data journalism.