11 November 2025 | FOR IMMEDIATE RELEASE
Western Metro MP David Ettershank has welcomed a report from the Victorian Ombudsman calling for financial support for residents of an Avondale Heights retirement village, which flooded in 2022.
Mr Ettershank said the owners of 45 homes at the Rivervue Retirement Village are aware that the village will flood again, and their properties are now virtually unsellable.
“The Ombudsman found that Melbourne Water’s rushed and flawed flood modelling used during early site development underpredicted flooding. This meant homes were set too low from the start,” he said.
“Mistakes in approved building plans saw some homes built lower still, without a full safety buffer.
“Vulnerable retirees are left living in a known flood hazard area, and the Ombudsman has recommended a support program to assist affected Rivervue residents who wish to leave and to cover direct financial losses they have already suffered.
“The findings of the Ombudsman support the conclusions of previous parliamentary inquiries. Many residents of the Rivervue Retirement Village invested all of their savings to acquire their homes. They’ve been betrayed by a lack of appropriate planning and faulty Melbourne Water modelling.
“Their properties have been fundamentally reduced in value or are unsellable, and we welcome the Ombudsman’s recommendation of compensation for losses they have suffered.”
Hundreds of homes affected
The Ombudsman’s investigation focused on two housing estates – Rivervue Retirement Village and the Kensington Banks residential estate. The flooding events were referred to by the Victorian Parliament’s Legislative Council.
For Kensington Banks, the Ombudsman found that a number of factors contributed. Namely, the impact of climate change, lags in updates to flood modelling, and a sinking flood protection levee.
“As we increasingly feel the impacts of climate change, regular and accurate flood modelling is essential,” Mr Ettershank said.
“Kensington Banks residents bought their properties with a clear understanding that their homes were well above the flood level.
“For the 850 affected households, that is definitely not the case. They’re now experiencing reduced property values and soaring insurance premiums. It’s just not good enough, and it is incumbent upon the State Government and Melbourne Water to protect this community.
“High-quality flood-risk information must be embedded into planning.”
Mr Ettershank said the Ombudsman also recommended the government establish a resilience program for residents.
“Government must offer subsidies for property-level flood resilience assessments and flood resilience upgrades,” he said.
Ombudsman Marlo Baragwanath said, “Climate change is an urgent priority, and we need to start preparing for the likely impacts on the places we live, work, study and play.”
All but two of the Ombudsman’s13 recommendations have been accepted. The Victorian Government has yet to accept the two recommendations focused on compensation for flood-affected residents and establishing a resilience program.
Mr Ettershank implored the Allan government to support the call for compensation and a resilience program.
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