Living in a retirement village comes with various costs, like property and grounds maintenance, and personal services. These costs are funded in different ways.
Each village has its own fees and charges.
- Your residence contract will outline all village funds you are required to contribute to and their purposes.
- Your residence contract and/or disclosure statement will list all fees and charges you need to pay.
Recurrent charges
Recurrent charges are regular fees you pay to the retirement village operator.
They are usually payable fortnightly or monthly and must be listed in your residence contract and disclosure statement.
Recurrent charges may cover:
- administration (for example stationery, office equipment, phone use)
- staff wages and related costs (for example village manager, maintenance staff)
- capital replacement and/or long-term maintenance costs
- property management (for example insurance)
- food and catering.
They may also include utilities such as electricity, water and council rates. Check your contract to confirm what is included.
Increases in recurrent charges
Recurrent charges can increase, but only within the limits set in your contract or by CPI, unless the majority of residents at a meeting agree to a higher amount or a higher amount is allowed by order of SACAT.
- Your contract and disclosure statement show how increases are calculated (for contracts after 2nd of February 2026).
- Financial statements from the last annual meeting must be provided with your contract.
When increases can occur
- At the annual residents’ meeting (held within 4 months of the end of the financial year).
- After audited financial statements are presented and residents can ask questions.
Charges cannot increase beyond the contract or CPI unless:
- most residents agree
- the increase is for certain costs outside the operator’s control (such as insurance, award wages, rates, taxes and levies)
- SACAT orders the increase.
The operator may backdate the increase to the start of the financial year.
Capital fund
Capital funds are reserves for replacing major items, improvements, or long-term maintenance in a retirement village. You may need to contribute to these funds as part of your recurrent charges and/or exit fees when you leave the village.
Capital Replacement Fund
Used for planned maintenance and replacing big items, such as:
- carpets
- stoves
- hot water systems
- air conditioners.
Long-Term Maintenance Fund (Sinking Fund)
Covers unexpected or long-term maintenance, such as:
- road and gutter repairs
- painting
- security systems
- recreational facilities, for example spas, pools.
Cap on capital fund contributions deducted from exit entitlements
There is a cap on capital fund contributions payable on exiting the village to a maximum of 12.5% of the current market value of the residence.
For contracts signed on or after 2 February 2026 a 1% of current market value per year (or part of) cap up to 12.5% applies.
Personal or additional service charges
These charges are for services provided specifically for you, like cleaning your residence, care services, separate meals, or meals that meet special dietary needs.
Temporary absence from the village
If you are away for 28 days or more:
- charges for personal or additional services stop after 28 days
- you may still pay for some recurrent costs, such as staff salaries for meal services.
Ask the operator which part of your recurrent charges relates to personal services.
Special levies
A special levy is a fee charged to cover unexpected village expenses, such as road resurfacing after tree root damage. Special levies are rare and can only be imposed if residents approve them by special resolution.
When a special levy can be charged
- residents receive at least 15 business days’ written notice of the meeting, including the proposed resolution
- the resolution is passed by at least 75% of residents who vote at the meeting (one vote per residence, in person or by absentee vote).
