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Legal definition of a retirement village
Not everything that looks like a retirement village is one. The Retirement Villages Act 1986 (the Act) defines a retirement village as a place where:
- accommodation and services are provided, or are to be provided, for the care and benefit of retired persons, one or more of whom have made an entry payment; and
- which is not a residential care facility.
If a place meets this legal definition of a retirement village, every resident is protected by the Act.
The proprietor of land to be used as a retirement village must lodge a 'retirement village notice' with the Land Titles Office. This notice is recorded on the land title, which can be checked on the Victorian Government's Landata website. It is illegal for anyone to offer contracts that claim to entitle a person to become a retirement village resident without lodging this notice.
Who can live in a retirement village
To live in a retirement village a person must be a 'retired person', which means they meet at least one of the following:
- are 55 or older, or
- have retired from full-time employment, or
- are the spouse or domestic partner of a person who is 55 or older or who has retired.
This means a younger spouse or partner can live in a retirement village even if they are under 55 and still working.
People who do not meet this definition may only live in a retirement village if the operator gives permission. The operator cannot unreasonably refuse permission and must give a written decision within 14 days of a request.
Retirement village features
A retirement village provides people with independent accommodation and may include shared facilities, such as:
- meeting rooms
- libraries
- pools.
It might also provide lifestyle services and social activities, such as:
- organised outings
- joint meals
- craft
- visiting doctors and allied health professionals.
Although staff in some villages have healthcare backgrounds, services in retirement villages generally do not include health care.
Retirement villages can be run for profit, or by community organisations such as religious or ethnic associations.
Are retirement villages different from other retirement accommodation?
Retirement villages are a special kind of accommodation under Victorian law.
They are different from:
- residential care facilities (aged care facilities, nursing homes, hostels)
- residential parks
- rental villages.
Residential care facilities
A retirement complex often includes low-level and/or high-level aged-care services. These may be called:
- aged care or residential care facilities
- nursing homes
- hostels.
Access to aged care services depends on an aged care assessment, in accordance with the Commonwealth Aged Care Act 2024.
This means an aged care operator cannot keep places free for residents from a specific retirement village, even if it is on the same site or in the same building as the aged care facility.
When moving from a retirement village into an aged care facility, you may have to end your contract with the retirement village and pay any associated fees. Find more information about the costs of leaving a retirement village.
Residential parks
Residential parks sometimes seem similar to retirement villages but they are not the same. People moving into a residential park:
- do not pay an entry payment
- buy their own prefabricated dwelling and rent the site.
People living in residential parks are covered under Part 4A of the Victorian Residential Tenancies Act 1997.
You can get information and advice about your rights and responsibilities as a residential park resident.
Rental villages
This type of accommodation is marketed specifically to retired people on a full rental basis. Generally, investors buy units in a village, which they offer to residents for rental under a tenancy agreement.
The fortnightly rental is often linked to a resident’s age pension and rent assistance – usually 85% of the age pension and 100% of rent assistance.
Rental village residents do not pay an entry payment as it is defined under the Retirement Villages Act 1986. The rental village is not a retirement village by law.
If you live in a rental village, the law that applies is the Residential Tenancies Act 1997. For more information about your rights and responsibilities, go to Renting.
Is buying into a retirement village a good investment?
Buying into a retirement village is not the same as buying an investment property.
Residents may face substantial costs when they leave a village. Buying into a retirement village is a lifestyle decision, not an investment to make money.
Many residents are surprised by how much they receive back when they leave. This amount is calculated using a formula in your contract, and can be reduced by operator fees and other charges.
Make sure you understand what you will receive back under different scenarios before you make the decision to live in a retirement village. A financial adviser can help you to understand the impact on your finances.
A retirement village’s information statement provides important information on the fees and charges applied at the village. All retirement villages must have their information statement available on their website.
Find more about information statements.