What the ACCC does

  • We educate consumers and businesses about their rights and responsibilities under the Australian Consumer Law.
  • We consider reports people make about consumer law issues in the retirement villages sector. We use those reports to inform our education, compliance and enforcement work.

What the ACCC can't do

  • We don’t get involved in individual disputes about retirement villages.
  • We don’t give legal advice about retirement village contracts.
  • We don’t enforce the specific state and territory retirement villages laws. These laws are enforced by state and territory government agencies.

On this page

Type of accommodation, services and facilities vary

Retirement villages differ from residential aged care facilities.

Aged care facilities are administered and operated under the federal government’s Aged Care laws. Retirement villages may be operated by commercial operators or charitable not-for-profit organisations.

Different retirement villages offer different types of accommodation, such as self-contained villas, semi-detached units or high-rise apartments.

Facilities and services also vary. Contracts should clearly describe the facilities and services offered and any restrictions, such as:

  • communal dining and recreation
  • emergency, medical and security services
  • in-home support or aged care accommodation
  • maintenance and gardening
  • whether pets are allowed
  • parking.

Retirement village operators should:

  • give clear, honest and complete information when advertising, and in dealings with residents and prospective residents
  • give residents and prospective residents clear information about the purchase or payment model, and all applicable and optional fees and charges
  • make sure agreements are easy to understand and do not include unfair terms.

Changes to a person's living situation can affect Centrelink or Veterans Affairs payments. It’s wise to check this before signing a contract.

Many different purchase and payment models are used

Retirement villages use a range of purchase and payment models.

Retirement village operators must not mislead consumers about fees and charges.

Purchase models

In some cases, residents buy their home within a retirement village. However, buying into a retirement village is often different from buying freehold or strata title property. The contract should clearly explain the payments required and whether residents are buying:

  • a title or strata with restrictions on how the property can be used or sold
  • a community or company title
  • a unit in a unit trust.

In some purchase models, retirement village operators may require the biggest part of the payment at the end of the agreement, such as when the home is sold to another person.

Other payment models

In other models, residents don’t buy their home, but instead pay for the right to live in their home through a:

  • rental agreement
  • leasehold arrangement
  • licence, or
  • loan to the operator
  • through some other payment model.

Retirement village operators may require residents to pay an upfront payment amount, bond or deposit.

Ongoing costs

On top of the main purchase or fee payment, most retirement villages charge ongoing fees. For example, there may be charges for:

  • energy, water and rates
  • maintenance
  • residents' association fees.

Contracts need to clearly detail these charges and explain how and when fees may increase.

The process for leaving should be explained

The process for leaving the retirement village should be explained in the contract.

Residents may have to pay one-off or even ongoing fees after they leave, as part of the payment model for the purchase.

The contract should also explain:

  • any payments the operator will make to the resident on leaving, such as returning part of the upfront payment amount or returning the bond paid
  • when the payments will occur.

If residents own a title to their retirement home, their contract may restrict how, when and to whom they can sell.

The particular purchasing and payment model used may also impact the capital gains from the sale. In some contracts the village keeps all or part of the capital gain.

States and territories have specific retirement villages laws

States and territories have specific retirement villages laws which retirement village operators must comply with.

Different states and territories may have different rules about:

  • contract disclosure statements and cooling-off periods
  • residents’ rights and retirement village operators’ responsibilities under each different purchasing and payment model.

State and territory retirement villages laws also generally include dispute resolution requirements.

Contact the state or territory consumer protection agency for more information.

Next steps for business

If you believe you’ve been misled by another business 

Your first step is to contact the other business to explain the problem.

If the business doesn’t resolve the problem, there are more steps you can take.

Get help contacting another business or taking a problem further

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