FAQs

Independent Living Unit/Villa

This is the most common type of retirement living. Residents must be capable of living independently. It’s not very different from staying in your own home, except that you are living in a community for retirees or over 55s. No personal services are provided, as they are in a serviced apartment, although they may be available as optional services.

Serviced Apartment

Retirement living accommodation, where personal services are provided to assist you with daily living, such as cleaning, laundry and meals. You may be able to access these services as optional services at other types of retirement living accommodation. This type of accommodation is also known as Assisted Living and is generally smaller in size than other accommodation types. 

Serviced Apartment living is not to be confused with residential aged care where care services are provided.

Rental Unit/Village

Rather than the traditional financial model of paying an entry price (and a deferred payment commonly being charged upon departure), a rental model may be available as an alternative within a traditional retirement village, or the entire community may be a rental model, where you pay an ongoing rental for your right to occupy your unit.

In a rental village (as opposed to a rental unit/s within an otherwise traditional retirement village where at least one resident has paid an entry price), you would sign a residential tenancy agreement and won’t be governed by retirement villages legislation. They’re not legally restricted to retirees or over 55s, however they may be designed and marketed towards this consumer group.

On the other hand, for a rental unit within a traditional retirement village where at least one resident has paid an entry price, you may sign a lease agreement governed by retirement villages legislation.

Land Lease Community

A community in which you lease the land/site from the community owner, but own the building it sits on or lease the building from the building owner.

The entry price is the price for the house, and departure fees may apply if you sell the house to a new owner.

Land lease communities are also referred to as manufactured home parks, because the homes are moveable. They may also be known as residential parks or lifestyle communities. They operate under different legislation than retirement villages legislation. They’re not legally restricted to retirees or over 55s, however they may be designed and marketed towards this consumer group.

Retirement Villages

Rental Villages

Land Lease Communities

ACT

Access Canberra 

Access Canberra

Access Canberra

NSW

Fair Trading 

Fair Trading

Fair Trading

NT

Consumer Affairs

Consumer Affairs

Consumer Affairs

Qld

Residential Tenancies Authority

SA

Office for the Ageing, SA Health

Attorney-General's Department

Attorney-General's Department

Tas

Consumer Affairs and Fair Trading

Consumer Affairs and Fair Trading

Consumer Affairs and Fair Trading

Vic

Consumer Affairs Victoria

Consumer Affairs Victoria

Consumer Affairs Victoria

WA

Department of Commerce

Department of Commerce

Department of Commerce

Independent Living Unit/Villa & Serviced Apartment

(retirement villages legislation)

Rental Unit/Village 

(either retirement villages legislation as on left or residential tenancies legislation as below – refer to Rental Unit/Village type in answer to Q2 of FAQs)

Land Lease Community

ACT

• Retirement Villages Act 2012
• Retirement Villages Regulation 2013

• Residential Tenancies Act 1997
• Residential Tenancies Regulation 1998

• Residential Tenancies Act 1997
• Residential Tenancies Regulation 1998

NSW

• Retirement Villages Act 1999
• Retirement Villages Regulation 2017

• Residential Tenancies Act 2010
• Residential Tenancies Regulation 2010

• Residential (Land Lease) Communities Act 2013
• Residential (Land Lease) Communities Regulation 2015

NT

• Retirement Villages Act 2016
• Retirement Villages Regulations 2016

• Residential Tenancies Act 2017
• Residential Tenancies Regulations 2009

• Caravan Parks Act 2015
• Caravan Parks Regulations 2012

Qld

• Retirement Villages Act 1999
• Retirement Villages Regulation 2010

• Residential Tenancies and Rooming Accommodation Act 2008
• Residential Tenancies and Rooming Accommodation Regulation 2009
• Residential Services (Accreditation) Act 2002
• Residential Services (Accreditation) Regulation 2002

• Manufactured Homes (Residential Parks) Act 2003
• Manufactured Homes (Residential Parks) Regulation 2017

SA

• Retirement Villages Act 2016
• Retirement Villages Regulations 2017
• Retirement Villages (Fees) Regulations 2017

• Residential Tenancies Act 1995
• Residential Tenancies Regulations 2010

• Residential Parks Act 2007
• Residential Parks Regulations 2007

Tas

• Retirement Villages Act 2004
• Retirement Villages Regulations 2015

• Residential Tenancy Act 1997
• Residential Tenancy Regulations 2015

• Residential Tenancy Act 1997
• Residential Tenancy Regulations 2015

Vic

• Retirement Villages Act 1986
• Retirement Villages (Records and Notices) Regulations 2015
• Retirement Villages (Contractual Arrangements) Regulations 2017

• Residential Tenancies Act 1997
• Residential Tenancies Regulations 2008

• Residential Tenancies Act 1997
• Residential Tenancies (Caravan Parks and Moveable Dwellings Registration and Standards) Regulations 2010

WA

• Retirement Villages Act 1992
• Retirement Villages Regulations 1992
• Fair Trading (Retirement Villages Interim Code) Regulations 2018

• Residential Tenancies Act 1987
• Residential Tenancies Regulations 1989

• Residential Parks (Long-stay Tenants) Act 2006
• Residential Parks (Long-stay Tenants) Regulations 2007
• Caravan Parks and Camping Grounds Act 1995
• Caravan Parks and Camping Grounds Regulations 1997

Strata title or Community title (owner resident)

You own the freehold title to your unit/lot and the lot owners are members of a strata company or body corporate/owners corporation (governed by state/territory strata titles/community titles legislation), which may appoint the retirement village operator to manage and administer the affairs of the strata company.

Residents being lot owners have the right to use the common property on the strata plan/plan of subdivision for which the strata company is responsible.

Your departure entitlement will be based on the resale price paid by a new resident upon settlement of the sale of your unit, less departure fees. Ongoing fees will usually continue until your unit is sold.

Note: although you own the title to your unit, there may be restrictions in your agreement with the village owner/operator as to who you can sell/transfer it to, and departure fees may still apply even if you are permitted to transfer it to a spouse, child or beneficiary. Furthermore, you may be prevented from borrowing against the unit to ensure departure fees can be recovered.

Lease premium (non-owner resident)

A long-term or lifetime lease of your unit is granted in return for you paying a non-refundable entry price/premium to the village owner.

The lease agreement would usually also include a right to use communal areas and facilities of the village. Leases may be registered on title and provide security of tenure. 

Your departure entitlement will be based on the new lease premium paid by a new resident upon settlement of the re-lease of your unit, less departure fees.

Loan/Lease (non-owner resident)

A long-term or lifetime lease of your unit is granted in return for you paying a refundable entry price/loan amount to the village owner. No interest is payable to you in relation to the loan amount paid by you.

The lease agreement would usually also include a right to use communal areas and facilities of the village. Leases may be registered on title and provide security of tenure. 

Your departure entitlement will be based on the loan amount repaid to you by the village owner and any entitlement to capital gain and liability for capital loss, less departure fees. 

Licence premium (non-owner resident)

A long-term or lifetime licence of your unit is granted in return for you paying a non-refundable entry price/premium to the village owner.

The licence agreement would usually also include a right to use communal areas and facilities of the village. Licences are not registered on title and therefore may appear to be a less secure form of tenure. However, terms and conditions of licences are usually similar to leases giving you similar rights. 

Your departure entitlement will be based on the new licence premium paid by a new resident upon settlement of the re-licence of your unit, less departure fees.

Loan/Licence (non-owner resident)

A long-term or lifetime licence of your unit is granted in return for you paying a refundable entry price/loan amount to the village owner. No interest is payable to you in relation to the loan amount paid by you.

The licence agreement would usually also include a right to use communal areas and facilities of the village. Licences are not registered on title and therefore may appear to be a less secure form of tenure. However, terms and conditions of licences are usually similar to leases giving you similar rights. 

Your departure entitlement will be based on the loan amount repaid to you by the village owner and any entitlement to capital gain and liability for capital loss, less departure fees. 

Company title (non-owner resident)

You buy shares in a company that owns the village (governed by the Commonwealth Corporations Act 2001), and your shares give you the right to occupy a particular unit in the village and to use the communal areas and facilities.

Your departure entitlement will be based on the resale price paid by a new resident upon settlement of the sale of your shares, less departure fees. Ongoing fees will usually continue until your shares are sold.

Unit trust (non-owner resident)

This arrangement is similar to a company-title scheme, except that you buy a unit/s in a trust that give you the right to occupy a particular unit in the village and to use the communal areas and facilities. 

The village is owned by the trustee, who holds it for the benefit of the unit holders on the terms of the trust. 

Your departure entitlement will be based on the resale price paid by a new resident upon settlement of the sale of the unit/s in the trust, less departure fees. Ongoing fees will usually continue until the unit/s in the trust are sold.

Purple title (owner resident)

An older form of freehold title, your entry price pays for an undivided tenant-in-common share/shares in the village (the total number of shares represent the number of units in the original village development plan).

Your ownership does not give you the right to occupy a particular unit, so you would sign a residence contract granting you the right to lease or licence your unit, and to use the communal areas and facilities of the village. 

Your departure entitlement will be based on the resale price paid by a new resident upon settlement of the sale of your purple title interest and re-lease or re-licence of your unit, less departure fees. Ongoing fees will usually continue until your purple title interest is sold.

Rental lease (non-owner resident)

You pay ongoing rental to lease your unit from the village owner.

Land lease (own building, lease land)

You own the building, but lease the land/site upon which it sits from the community owner.  The entry price is the price for the house, and you pay an ongoing site fee to lease the land. 

Under the site lease, you would also have the right to use the communal areas and facilities of the community.

Your departure entitlement will be based on the resale price paid by a new resident upon settlement of the sale of your home, less any departure fees. Ongoing fees will usually continue until your home is sold, leased or relocated. If you decide to relocate the house (if permitted), as against selling or leasing to a new resident, there will be costs associated.

Land lease (lease building, lease land)

You lease the building from the building owner, and lease the land/site upon which it sits from the community owner.  You pay ongoing rental to lease the building as well as an ongoing site fee to lease the land (you have two landlords). Usually you just pay one ongoing amount to one landlord who then pays the other their share.

Under the site lease, you would also have the right to use the communal areas and facilities of the community.

ACT

90 days. You are liable to pay only:

• Fair market rent for the period of your residency;
  
• Cost of any repairs for damage to the unit in excess of fair wear and tear;
  
• A reasonable administration fee not exceeding $200; and
  
• The reasonable costs incurred in adding, removing or altering any fixtures or fittings, or making any renovations, to the unit at your request (but only if you have occupied the unit).
  

NSW

Same as in ACT.

NT

None.

Qld

None.

SA

90 days. You are liable to pay only:

• Fair market rent for the period of your residency; and
  
• Other amounts (if any) you are required to pay under your residence contract if you leave during the settling-in period.
  

Tas

None.

Vic

None. 

WA

None.

Service/Maintenance Fees

Ongoing Fees for Personal Services 

(e.g. Serviced Apartment Services Fee)

ACT

For non-registered interest holders, 42 days from permanent vacation, unless the unit is sold or occupied earlier.

For registered interest holders, 42 days from permanent vacation, unless the unit is sold or occupied earlier. Then from the 43^rd day, the resident and the operator share responsibility for payment in the same proportions in which they are to share in any capital gain, until the unit is sold or occupied.

Residents are not registered interest holders if:

• Their residence contract is a lease and the resident gets less than 50% of any capital gain); or
• Their residence contract is a licence.

In the event of temporary absence, 28 days after the resident’s absence.

In the event of moving out, until the resident moves out.

In the event of death, until the operator is notified of the resident’s death.

NSW

Same as in ACT.

Same as in ACT.

NT

Legislation is silent.

Residents must not be charged for costs which are not incurred by the retirement village in their absence.

Qld

90 days from vacation, unless the unit is sold or occupied earlier.  Then, from the 91^st day to 9 months after vacation, the resident and the operator share responsibility for payment in the same proportions in which they are to share in the resale price (before deductions), until the unit is sold or occupied.

Until the residence contract terminates, or if the residence contract terminates because of death, 28 days after death.

SA

If the resident is entitled to a refund of their entry price, 6 months after the resident ceases to reside, unless the unit is sold or occupied earlier.

In the event of temporary absence, 28 days after the resident’s absence.

In the event of moving out, until the resident ceases to reside.

Tas

Legislation is silent.

In the event of temporary absence, if the resident has given at least 30 days’ notice to the operator of their intended absence, until the resident temporarily ceased to reside. If the resident has not given notice, and is absent for a continuous period of at least 30 days, until 30 days after the resident temporarily ceased to reside. 

In the event of moving out, until the resident ceased to reside.

Vic

For non-owner residents, 6 months after vacant possession, unless the unit is sold or occupied earlier.

28 days after the resident ceases to be a resident.

WA

For non-owner residents, the later of 3 months from permanent vacation, or 3 months from the date the operator is given evidence of death (in the event of death), unless the unit is sold or occupied earlier. 

In the event of temporary absence, until the resident temporarily ceased to reside.

In the event of moving out, until the date of permanent vacation.

ACT

None.

NSW

Same as in ACT.

NT

None.

Qld

None.

SA

A resident can apply for any refund of their entry price that is required under their residence contract, if they have been approved to move into an aged care facility, are required to pay a refundable accommodation deposit, and they do not have “ready access to funds” or their personal finances would be “seriously affected by” a requirement to make the payment. 

The early payment is paid within 60 days of the operator receiving the resident’s application (which must be made within 60 days of the later of being approved for entry into the facility or leaving the village) and is limited to the amount needed to secure entry into the aged care facility (up to an amount that is a reasonable assessment of the unpaid refundable entry price, taking into account any capital gain entitlement, capital loss liability and departure fees). 

Any funding towards your refundable accommodation deposit would be deducted from your departure entitlement.

Tas

Where a resident enters aged care, the position is similar to that in SA, however the application must be made within 10 business days of leaving the village and the early payment is made within 45 days of the operator receiving the application. The Director of Consumer Affairs and Fair Trading may extend the time for payment if the early payment would cause serious financial hardship to the operator. 

Vic

A resident who has paid a refundable entry price under their residence contract, and has been approved to move into an aged care facility, can apply for funding of any daily accommodation payments due to the provider up to 85% of the amount of the unpaid refundable entry price (taking into account any capital gain entitlement, capital loss liability and departure fees) as reasonably estimated by the village owner calculated according to their estimate of the current market value of your residence right.

Any funding towards your daily accommodation payments would be deducted from your departure entitlement.

WA

None.

ACT

Residents who are not registered interest holders are entitled to any refund of their entry price that is required under their residence contract, at 6 months after vacant possession, unless the unit is sold or occupied earlier. The refund would be less departure fees, although any capital gain entitlement is not due until the until is sold or occupied.

If the payment would cause the operator undue hardship, they may apply to the ACT Civil and Administrative Tribunal for an order to extend the payment time, or allow the payment to be made by instalments. In making their decision, the Tribunal may consider the hardship this would cause the resident.

Residents are not registered interest holders if:

· Their residence contract is a lease and the resident gets less than 50% of any capital gain); or

· Their residence contract is a licence.

NSW

Same as in ACT, except that the relevant Tribunal is the NSW Civil and Administrative Tribunal.

NT

None.

Qld

A resident is entitled to receive their exit/departure entitlement at 18 months after the termination date, unless the unit is sold earlier. The payment would take into account any capital gain entitlement, capital loss liability and departure fees.

An operator may apply to the Queensland Civil and Administrative Tribunal for an order to extend the period for payment of the exist entitlement if special circumstances exist.

SA

From 1 January 2017, a resident is entitled to receive their exit/departure entitlement when a period of 18 months has elapsed since the resident ceased to resident in the retirement village, unless the unit is sold earlier. The payment would take into account any capital gain entitlement, capital loss liability and departure fees.

An operator may apply to the South Australian Civil and Administrative Tribunal for an order to extend the period for payment of the exit entitlement if special circumstances exist.

Tas

Residents are entitled to any refund of their entry price that is required under their residence contract, at 6 months after the residence contract is terminated, unless the unit is sold or occupied earlier. The refund would take into account any capital gain entitlement, capital loss liability and departure fees.

The Director of Consumer Affairs and Fair Trading may extend the time for payment if the early payment would cause serious financial hardship to the operator.

Vic

Residents who are non-owners are entitled to any refund of their entry price that is required under their residence contract, at 6 months after vacant possession, unless sold or occupied earlier. The refund would take into account any capital gain entitlement, capital loss liability and departure fees.

However, if the clauses in Schedule 1 or 2 of the Retirement Villages (Contractual Arrangements) Regulations 2006 have been inserted into the residence contract (which give the resident more control over the sale process such as the right to appoint an independent agent and set the resale price), any refund is not due until the unit is sold or occupied, unless an earlier period is agreed.

WA

None.

Entry Fees

Fees you pay to the owner/operator when you move in.

Note: if you request to use a garage, carport or car space not provided with the unit, a separate fee may apply. Fees to third parties are not covered by the information provided on this website, e.g. any stamp duty or security deposit.

Departure Entitlement

What you’re entitled to receive from the owner/operator after you leave (less departure fees), e.g. upon settlement to a new resident.

Refer to answer to Q10 of FAQs which outlines any statutory ‘buyback’ periods.

Departure Fees

Fees you pay to the owner/operator upon departure (set-off against your departure entitlement). Other fees may apply.

Note: Post-departure fees may also apply, e.g. there may be a continuing obligation on you to pay ongoing fees for a certain period after you leave. Refer to answer to Q8 of FAQs which outlines any statutory caps.

Deferred Payment

Frequently called a deferred management fee (or DMF), this is the income return the owner/operator receives for developing and managing the business of a retirement village, which is deferred until departure instead of charged upfront, to make it more affordable upon entry. Rather than a lump sum payment, the fee accrues over time. GST may apply.

The owner/operator may contribute a proportion of the deferred payment into the long-term maintenance fund.

Long-Term Maintenance Fund Charge

Also called Capital Improvement Fund Charge/Major Maintenance Fund Charge/Refurbishment Fund Charge/Reserve Fund Charge/Sinking Fund Charge.

Separate charge which is paid into a fund to pay for longer term maintenance, or maintenance, repairs or replacements of a substantial but infrequent or irregular nature.

Long-Term Maintenance Fund Fee

Also called Capital Improvement Fund Fee/Major Maintenance Fund Fee/Refurbishment Fund Fee/Reserve Fund Fee/Sinking Fund Fee.

Separate fee which is paid into a fund to pay for longer term maintenance, or maintenance, repairs or replacements of a substantial but infrequent or irregular nature. Instead of a separate fee being charged, a proportion of the deferred payment or service/maintenance fee may be paid into a long-term maintenance fund.

Note: whether it is calculated on a pro-rata daily, monthly or yearly basis is not covered by the information provided on this website, and you will need to make your own enquiries with the village operator.

Ongoing Fees

Ongoing charges you pay to the owner/operator during residency, which may be subject to annual increases.  

Note: other charges may apply, e.g. charges for optional services.

Optional Services

Additional services provided or made available by the operator to individual residents that you may choose to receive on a user-pays basis.

Personal Services

Services provided or made available by the operator to individual residents that you may choose to receive (e.g. by moving into a serviced apartment), which are funded from ongoing fees.

Pre-Paid Rent

A non-refundable upfront payment.

Rental

Charge for your occupancy right granted by the owner, which for a rental unit (as opposed to a rental village) may be available as an alternative to the standard contractual arrangement with an entry price (and a deferred payment commonly being charged upon departure).

Serviced Apartment Services Fee

Fee for personal services provided to a serviced apartment, such as cleaning, laundry and meals.

Service/Maintenance Fee

Contribution towards the day-to-day expenses of running the village (e.g. village staff, village insurance, maintenance of communal areas and facilities, and upkeep of communal gardens). Common practice across states is for annual fee increases to be by CPI unless approved by a majority of residents at a residents' meeting. It’s similar to a strata/body corporate fee in a strata block.

Note: you may need to pay for maintenance, repairs or replacements of your unit and upkeep of any personal garden area/courtyard, and you will need to make your own enquiries with the village operator.

Site Fee

Fee which covers day-to-day running costs of the village and rental for the site.

Strata Fee

If the tenure is strata title, a separate strata fee may be charged, if it is not included in the service fee, to cover strata title costs, e.g. common property costs.

Upfront Payment

Instead of a deferred payment, an upfront payment (in addition to the entry price) may be charged, as an alternative contractual arrangement.