Retirement Villages Acts by state: NSW 1999, Vic 1986 and Qld 1999

Retirement Villages legislation by state

Retirement village legislation varies across Australian states. New South Wales operates under the *Retirement Villages Act 1999* (NSW), with administration handled by NSW Fair Trading. Queensland’s framework is established by the *Retirement Villages Act 1999* (Qld), overseen by the Department of Housing. Western Australia has the *Retirement Villages Act 1992* (WA), and South Australia replaced its earlier 1987 Act with the *Retirement Villages Act 2016* (SA).

Victoria’s *Retirement Villages Act 1986* (Vic) has been substantially reformed by the *Retirement Villages Amendment Act 2024*. This amendment passed both Houses on 28 May 2025 and is scheduled for proclamation no later than 1 May 2026. Unfair contract terms 2026 penalties will be relevant to this new legislation.

Each state’s Act governs the operation of retirement villages and the rights and responsibilities of residents and operators.

Entry deposits and ingoing contributions

Most retirement village contracts include an ingoing contribution, frequently referred to as an entry deposit. This contribution is typically held in trust by the operator until the prospective resident enters into the contract. Should a prospective resident advise the operator they will not be proceeding with the contract, the holding deposit must be refunded in full.

Ingoing contributions are generally structured as a loan-licence or leasehold arrangement, rather than a sale of the unit. This means residents do not gain ownership of the unit within the retirement village. Operators are required to provide a prescribed disclosure statement to prospective residents before they sign the contract, and residents should review this carefully to understand their obligations. ACL misleading and deceptive conduct (s18, s29) applies to these disclosures.

Following contract signing, most jurisdictions offer a cooling-off period, typically lasting seven days. This allows residents to rescind the contract within that timeframe.

Exit fees and deferred management fees (DMF)

Exit fees, often referred to as deferred management fees (DMF), are a common feature of retirement village contracts. These fees are typically calculated as a percentage per year of residency, with a maximum cap applied after a certain period. ACL consumer guarantees may apply to these fees.

Victoria’s recent reforms clarify that a deferred fee can only be charged on the ingoing contribution paid by the resident. This applies regardless of how long the resident has lived in the village. Furthermore, a deferred fee cannot be charged if the resident leaves during a settling-in period, provided this is stipulated in the contract.

Refundable Accommodation Deposits (RAD) are also relevant to exit fees. Victoria’s reforms confirm that RADs remain capped at 85% of the estimated exit entitlement when a unit is resold to a new resident.

Refund timeframes by state

Refund timeframes vary across states. In New South Wales, following reforms from 1 July 2021, residents may receive exit entitlement money prior to unit resale in specific situations. Furthermore, ongoing services charges cease 42 days after a resident’s departure. Franchising Code of Conduct 2024 update

Victoria’s 2024 reforms, commencing by 1 May 2026, introduce a requirement for operators to refund up to 85% of the estimated refundable portion of an ingoing loan before a new resident occupies the unit. This aims to improve cash flow for exiting residents.

Queensland’s Retirement Villages Act 1999 (Qld) generally mandates that exit entitlements be paid within 14 days of resale, or within a maximum statutory backstop period. Operators must also provide a Standard Contract and a Public Information Document (PID) before a resident signs. Disputes about exit entitlements are heard by QCAT.