Retirement villages

What is a retirement village?

Retirement villages are a special kind of accommodation regulated by the Retirement Villages Act 2004 (the Act).

A retirement village provides people with independent accommodation. It may include shared facilities, such as:

• common meeting rooms
• library or
• swimming pool.

The village may also provide lifestyle services and social activities such as:

• organised outings
• joint meals
• craft activities
• visiting doctors, community nurses and other health professionals.

NOTE: Although staff in some villages have health care backgrounds, services in retirement villages generally do not include health care.

A retirement village is a community where:

• the majority of residents are aged 55 years or over or
  • are retired from full-time employment or
  • are spouses/partners of such people
• residents are provided with accommodation and services, other than services provided in a residential care or aged care facility and
• at least one of the residents paid an ingoing contribution that was not rent, but it does not matter who made the contribution, or whether it was paid as a lump sum or by instalments.

When a community meets the above definition, every resident is protected by the Act.

Are retirement villages different from other retirement accommodation?

They are different from:

• residential care facilities (aged care facilities, nursing homes, hostels)
• residential parks
• rental villages.

We recommend you seek independent advice before buying into a retirement village.  Schedule 3 of the Act provides a Checklist which highlights what to consider before buying into a retirement village.

Retirement village operator contract requirements

A retirement village operator must provide the following before a person enters into a residence contract:

• a copy of the residence contract
• a copy of the village rules
• a checklist of questions to consider when thinking about entering a retirement village
• a notice of rights under the Retirement Villages Act 2004 and
• a copy of any financial information that is available.

What happens when you leave a retirement village?

Within the first six months of you leaving the retirement village, the operator must refund the portion of your ingoing contribution you are entitled to.

Can a retirement village operator increase recurrent charges?

• An operator may not increase recurrent charges without submitting a written explanation to an annual general meeting convened between residents and the operator. The written explanation should demonstrate that the increase in recurrent charges is reasonable in the circumstances, having regard to the accounts for the previous financial year and the estimates for the current financial year.
• The Act restricts recurrent charge increases that are above the rate of the Consumer Price Index (CPI) increase amount (worked out in accordance with a formula in the Act), except in the following circumstances:
  • when authorised by a resolution passed by at least 65% of the residents and tenants voting in person or by proxy and who are entitled to vote at that meeting; or
  • where the increase in excess of the CPI is attributable to one or more of the prescribed reasons in the Act.
• If the recurrent charge increase does not fit within one of the circumstances listed above, the operator may apply to the Tasmanian Civil and Administrative Tribunal (TASCAT) for an order in respect of the proposed increase.
• TASCAT may order a proposed recurrent charge increase in whole or in part, or order that the proposed recurrent charge is not to take effect.
  • The operator of a retirement village must, as soon as reasonably practicable after making an application, give each resident and tenant of the retirement village a written notice of the making of that application. A person whose interests are affected may apply to TASCAT to be made a party to proceedings.
  • In determining an application, TASCAT may consider a range of factors, including:
    • the general market level of recurrent charges paid at similar retirement villages in the same or a similar locality;
    • the level and cost of services and facilities provided for in estimates of expenditure for the current financial year;
    • any proposed amendments (including additions) to the services and facilities to which the residents have consented or are considered necessary; and
    • the frequency and amount of past amendments of the recurrent charges.
• Any increase in a recurrent charge by the operator that does not comply with section 14A of the Act is void and not payable by the residents, unless TASCAT has ordered the increased charge to take effect under section 14B of the Act.

Can a retirement village operator impose a levy?

• A levy that is not authorised by the village rules or residence contract may not be imposed on the residents of a retirement village unless:
  • the residents and tenants have authorised the imposition of the levy by a special resolution; or
  • a levy for a purpose not authorised by the village rules or a residence contract has not been imposed in the previous 12 months and the expenditure which the levy is intended to cover is payable because of the requirements of an Act or the order of a court or tribunal.
• An operator must not impose, or attempt to impose, a levy on a resident that is contrary to section 14C of the Act. An imposition of a levy by the operator that is contrary to the requirements of section 14C of the Act is void and not payable by the residents.

Resident and operator disputes

Village rules must detail how disputes are resolved. If the parties are unable to resolve a dispute after following the village's dispute resolution process, either party may apply to the Director of Consumer Affairs and Fair Trading to resolve the dispute.  The Director has powers under the Act to make certain orders including payment of monies up to $5000.  An affected person may appeal a Director's order to the Tasmanian Civil and Administrative Tribunal (TASCAT).

Related information

• Retirement Villages Amendment Act 2023 Fact Sheet