A person thinking of moving into a retirement village will be provided with some important documents before they are asked to sign a residence contract. A prospective resident should seek legal and financial advice before signing a residence contract.

At least 10 business days before a person enters into a retirement village residence contract, the operator of the retirement village must give the person a copy of the following:

Some of the documents listed above are outlined in more detail further in this chapter.

Offences

It is an offence for an operator to fail to provide the documents listed above as and when required [Retirement Villages Act 2016 (SA) s 22(1)]. A prospective resident may waive the 10 business days notice period with written notice if they have otherwise received all of the documents and their lawyer has confirmed in writing that they have received legal advice [s 22(2)].

It is also an offence for a person to:

A residence contract is the main document that outlines the legal relationship between the prospective resident and the retirement village operator. It operates in addition to the provisions of the Retirement Villages Act 2016 (SA) and Retirement Villages Regulations 2017 (SA), but cannot include clauses contrary to the Act or regulations. It is therefore vital that any prospective resident seek legal advice where appropriate before signing a residence contract to ensure they understand their rights and obligations.

Section 20 of the Retirement Villages Act 2016 (SA) requires a residence contract to include the name and contact details of the operator of the retirement village, details about the particular residence the person will reside in, and the resident’s rights and obligations under the contract, including:

The residence contract must also include information about:

From 2 February 2026, every retirement village operator is legally required to ensure that a new residence contract includes the above information. A fine may be imposed if an operator fails to meet this requirement [s 20].

Warranty as to accuracy of information

Every residence contract will be taken to include a warranty that the information and documents provided before signing a residence contract are correct (subject to any written changes made by the operator with the consent of the resident on or before signing the contract), and the warranty will prevail over any inconsistent contractual term unless the resident elects to rely on the contractual term [s 20(2)].

Holding deposits

From 2 February 2026, an operator may not require a holding deposit of more than $5,000 from a prospective resident [s 25A(1)]. Once a deposit is accepted, an operator may not increase a resident fee or charge under the residence contract or enter into a residence contract for the same residence with another person [s 25A(2)]. A resident who decides not to enter into the residence contract is entitled to a refund of the deposit within 10 business days [s 25A(5)].

Fees and Charges

The operator of a retirement village must provide a prospective resident with a disclosure statement at least 10 business days before they sign a residence contract [Retirement Villages Act 2016 (SA) s 22]. The disclosure statement is intended to improve the transparency of residence contracts and provide a prospective resident with a summary of the relevant financial information before they sign a contract.

The disclosure statement must be in writing and set out the financial arrangements for residents of the retirement village, including [s 21]:

The disclosure statement must also include information about [s 21(1)(b)]:

Legal and Financial Advice

The disclosure statement must include a statement advising that [s 21(1)(c)]:

It is an offence for an operator to fail to provide a disclosure statement with the details required by the Retirement Villages Act 2016 (SA) [s 21].

Schedule 1 of the Retirement Villages Regulations 2017 (SA) sets out codes of conduct that must be followed by residents, retirement village staff, and operators.

It is a term of every residence contract that the operator and the resident must follow the code of conduct that applies to them [Retirement Villages Act 2016 (SA) s 63(2)].

If an operator breaches a code of conduct, they are liable to pay a fine of up to $2,500 or an expiation fee of $210 [s 63(3)]. From 5 December 2026, this will be extended to all retirement village staff [s 63(4)].

Prospective residents must be given copies of the codes of conduct that apply to residents, retirement village staff, and the operator before signing a residence contract [s 22(1)(f)].

All codes of conduct set out good practice principles that residents, retirement village staff and operators are expected to follow. These principles share some common features including respecting the dignity and diversity of all residents, prospective residents and others in the village, respecting the peace, comfort, and privacy of all residents, and acting honestly and in good faith in all interactions.

Residents

Schedule 1 Part 1 of the Retirement Villages Regulations 2017 (SA) sets out the code of conduct that applies to residents. Under the code, a resident must not:

Retirement village staff

Schedule 1 Part 2 sets out the code of conduct that applies to village managers, senior managers and anyone else employed or engaged by or on behalf of a retirement village operator. Under the code, retirement village staff must not:

Operators

Schedule 1 Part 3 sets out the code of conduct that applies to retirement village operators. This code of conduct includes the requirements that apply to retirement village staff outlined above. In addition, an operator must not:

An operator must undertake reasonable consultation with the retirement village residents' committee and with residents regarding particular matters as set out in detail in the Retirement Villages Regulations 2017 (SA) [see Schedule 1 Part 3 clauses 10 - 12].

From 5 December 2026, retirement village operators will be legally required to ensure that they and all retirement village staff undertake approved training in relation to the code of conduct that applies to them [Retirement Villages Act 2016 (SA) s 63 as amended from 5 December 2026]. Further information about the required training will be released during 2026.

A key document that must be provided to a prospective resident before signing a residence contract is a copy of the retirement village's residence rules [Retirement Villages Act 2016 (SA) s 22(1)(d)].

Residence rules relate to the use of the retirement village and are intended to ensure all residents enjoy the village [Retirement Villages Regulations 2017 (SA) reg 15(1)(a)].

Residence rules must address at least the following (but can be more comprehensive) [reg 15(1)(b)]:

A residence rule must not be harsh, oppressive, unconscionable or unjust [Retirement Villages Act 2016 (SA) s 41]. A rule of this kind is void. A resident who believes a residence rule is harsh, oppressive, unconscionable or unjust may apply to the South Australian Civil and Administrative Tribunal for an order that the rule is void and of no effect or is to apply in a modified form [s 41].

Retirement village operators are required to consult with residents before making any changes to the residence rules [Retirement Villages Regulations 2017 (SA) Schedule 1 Part 3 cl 11(1)(b)]. The regulations set out the consultation requirements in greater detail [see cl 15]. It is an offence for an operator to change the residence rules without complying with the requirements set out in the regulations [Retirement Villages Act 2016 (SA) s 41(3)].

In addition to the requirement that a retirement village operator provide a copy of the residence rules to a prospective resident before they have signed a residence contract, an operator must also provide a copy to any resident at their request [Retirement Villages Act 2016 (SA) s 42(1)(b)]. If any alterations are made to the residence rules, the operator must provided a copy of the amended rules to each resident [see s 42(2)]. The penalty for an operator failing to comply with these requirements is a fine of up to $2,500 [s 42].

If a resident breaches the residence rules, the operator may terminate their right of occupation [s 44(1)(c)(i)].

Premises condition report

The operator of a retirement village must give a premises condition report to a resident before they move into a retirement village [Retirement Villages Act 2016 (SA) s 23(1)]. The premises condition report must set out information about:

Regulation 6B of the Retirement Villages Regulations 2017 (SA) sets out the requirements for a premises condition report in greater detail.

The resident must then complete the premises condition report and give it back to the operator within 10 business days of moving in [Retirement Villages Act 2016 (SA) s 23(3)]. A resident who does not return a signed premises condition report is taken to have agreed to the report [s 23(4)].

Village safety

From 2 February 2026, a retirement village operator must ensure that common areas of the village are reasonably safe [s 43A]. This includes:

Regulation 16 of the Retirement Villages Regulations 2017 (SA) sets out the requirements in greater detail.

It is an offence for an operator to fail to take the above steps [Retirement Villages Act 2016 (SA) s 43A(3)].

Alterations

From 2 February 2026, a resident may, by notice in writing to the operator, request approval to make an alteration to their residence to install a functional aid, equipment or infrastructure as recommended by a registered health practitioner [s 43B(1), (6)]. This could include, for example, installing grab rails or other mobility aids.

The operator must respond to the resident's request within 10 business days and may only refuse the request if reasonable grounds exist to refuse it [s 43B(2), (3)]. The operator may make the approval subject to reasonable conditions, including that the resident reinstate the premises when the aid is no longer needed or the contract ends [s 43B(4)].

This provision applies regardless of what a residence contract says about alterations, unless a resident elects to rely on an inconsistent contractual term [s 43B(5)].

Fees and Charges

Each retirement village has its own set of fees and charges, which must be set out in the residence contract and the disclosure statement. The most common sets of fees and charges are recurrent charges (which may cover things like administration, food, and utilities), capital replacement funds (which may be used to replace things like appliances, hot water services, or air conditioners) and sinking funds (which may be used for long-term maintenance and unplanned expenses). Some villages may also offer additional services such as cleaning of the residence, care services, and separate meals, which may attract additional fees.

Consultation with residents

Retirement village operators must consult with residents on any matter that could have a significant impact on their financial affairs, the amenity of the retirement village, or their way of life. Consultation must occur before:

Residents' committee

A single residents' committee may be established within a retirement village to represent the interests of residents and consult with the operator of the village on behalf of residents [Retirement Villages Act 2016 (SA) s 38].

Members of a residents' committee are elected to the committee for a period of one year, but can stand for re-election [s 38(5)].

A residents' committee can call meetings with other residents [Retirement Villages Regulations 2017 (SA) reg 12(1)], and can meet with the retirement village operator as required [Retirement Villages Act 2016 (SA) s 38(11)]. The committee is required to call a meeting with residents annually, where certain financial information of the committee must be provided [Retirement Villages Regulations 2017 (SA) reg 12]. The committee must take minutes at these meetings and within 10 business days make them available for other residents to inspect, and give a copy to the operator [see reg 12(4)].

A retirement village operator is required to consult with a residents' committee on a range of matters, including any maintenance issues raised by residents to the committee, certain proposed changes to village services or amenities, and the establishment of social and recreational programs at the village [see Retirement Villages Regulations 2017 (SA) Schedule 1 cl 10].

Meetings

Meetings are an important way for residents to keep in contact with retirement village operators and for operators to provide relevant information (particularly financial information) to residents. They also provide an opportunity for residents to vote on certain proposals affecting the village.

A residents' meeting must be convened by the operator of a retirement village on at least an annual basis [see Retirement Villages Act 2016 (SA) s 33(1)]. Each resident will be provided with written notice of the meeting at least 10 business days before it is held [s 33(5)]. A notice of an annual meeting must contain various financial, income and expenditure details [s 33(6)(a)] as well as an invitation for residents to submit written questions to the operator at least 5 business days before the meeting [s 33(6)(b)].

Minutes must be made within 10 days of an annual meeting and copies must be provided to each resident [s 34(4)(a)].

There are a number of different ways in which a resident's right of occupation within a retirement village may be terminated (ended).

Termination by operator

An operator of a retirement village can only terminate a resident’s right of occupation in the following circumstances [Retirement Villages Act 2016 (SA) s 44]:

The operator must not terminate the resident’s right on the basis of the resident’s behaviour unless they have made reasonable efforts to stop the resident acting in the manner complained of, such as by [s 44(3)]:

In most circumstances, and in particular where the resident's behaviour has led the operator to terminate a resident’s right of occupation, the termination must be confirmed by the South Australian Civil and Administrative Tribunal on application by the operator [s 44(8)]. The operator must give the resident at least 5 business days' notice of the application to the Tribunal for it to be effective [s 44(8a)].

A resident’s right of occupation can also be terminated in the following limited circumstances:

Termination by resident

A resident has a 10 business day cooling-off period to change their mind after they have signed a residence contract [Retirement Villages Act 2016 (SA) s 24(3)]. They can exercise their cooling off rights within this period and notify the retirement village operator in writing that they do not wish to proceed with the contract [s 24(5)]. An operator must, within 10 business days, refund the ingoing contribution of a resident who exercises their cooling off right [s 24(5a)].

A resident can waive their right to cool off if they wish to move into the premises within 10 business days of signing the residence contract [s 24(4)]. They must sign a written waiver acknowledging that they have been informed of their right to cool off and have chosen to waive this right [s 24(4)(b)].

In addition to a cooling off period, a resident has a period of time that is referred to as the "settling-in" period. This is a period of time in which the resident may decide that they do not wish to remain residing in the village. The settling-in period starts from the day the resident signed the contract or began occupying the residence (whichever was later) and ends 90 days thereafter, or such longer period as may be specified in the resident’s contract.

A residence contract cannot limit or qualify the right of a resident to terminate during their settling-in period [s 44(4)].

If a resident terminates the right of occupation during the settling-in period, they are only liable to pay [s 44(5)]:

A resident cannot be required to pay an amount as a penalty for terminating during the settling-in period [s 44(7)].

The amount due may be deducted from the resident’s exit entitlement [s 44(6)].

What is an exit entitlement?

An exit entitlement is the amount of money that is, under a residence contract, payable by the operator of the retirement village when a resident leaves their premises vacant, or when certain conditions under the residence contract are fulfilled, whichever occurs first [Retirement Villages Act 2016 (SA) s 4].

When does an exit entitlement become payable?

An exit entitlement may not become payable immediately. It may become payable when [s 27]:

The operator may apply to the South Australian Civil and Administrative Tribunal for the 12 month period to be extended where special circumstances exist to justify it [s 27(7)].

The operator must pay the exit entitlement within 10 business days after the resident becomes entitled to the payment, provided the resident has given the operator their payee details. It is an offence for an operator to fail to pay an exist entitlement on time [s 27(15)].

Can the exit entitlement be paid earlier?

The exit entitlement can be paid earlier than required if the operator agrees to pay it early.

A resident who moves from a retirement village to an aged care facility and demonstrates a need to use the exit entitlement to pay the required payments to the aged care facility may apply for early access to the exit entitlement [s 30]. The resident must apply to the retirement village operator within 60 days of being approved entry into an aged care facility, or within 60 days of vacating the retirement village (whichever is the later) [s 30(1)]. The retirement village can then make payments to the aged care facility on the resident's behalf towards the daily accommodation costs of the resident [s 30(3)]. The amount the retirement village pays to the aged care facility is then deducted from the resident's exit entitlement when it becomes otherwise payable [s 30(6)].

How is the exit entitlement calculated?

If an exit entitlement becomes payable and the contract says that it shall be calculated on the consideration paid on the sale of the right to reside in the retirement village, but that sale has not yet occurred, the resident may elect to either wait until the sale occurs, or receive the entitlement as if the consideration paid on the sale was the current market value [s 27(5)]. If paid in this way, the entitlement is not later subject to an adjustment after the sale occurs [s 27(6)].

The operator must provide residents, at their request and free of charge, with a statement of the amount to which the resident would be entitled, by way of exit entitlement [s 42(1)].

What if a resident disagrees with the proposed market value?

A resident who does not agree with the operator’s determination of the market value may require the operator to obtain an independent valuation (with the operator entitled to recover half of the cost of obtaining that from the resident) [s 27(16)].

Does a resident have to pay recurrent charges even if they are absent for a lengthy period?

A resident who is absent for a continuous period of at least 28 days is not liable to pay any amount in relation to any personal service that the retirement village no longer provides due to the resident’s absence [s 29(1)]. The same applies if a resident ceases to reside in the retirement village [s 29(2)]. A personal service is provided to the resident individually, rather than to residents generally.

A resident is taken to have ceased to reside in the retirement village when the person (or someone else on their behalf, including an executor or administrator of their estate upon their death) delivers vacant possession to the operator [s 4(2)]. If the person’s right of occupation is terminated, a person is taken to have ceased to reside in the retirement village at the end of the period fixed by the Tribunal for vacant possession. Vacant possession means that the residence is no longer occupied and all personal property has been removed from the residence [s 4(2)].

The operator of the retirement village may recover the costs of any other recurrent charges as a deduction from the exit entitlement (up to an amount not greater than the exit entitlement itself, and for a length of not more than 6 months, unless extended by SACAT or shortened by the residence being re-sold or re-occupied earlier) [s 29(3)-(6)].

Disputes can arise between residents and operators of retirement villages, or between two or more residents residing in the same village. While some disputes can be resolved informally, the operator of a retirement village must also have a written dispute resolution policy, which must comply with any requirements prescribed by the regulations [see Retirement Villages Act 2016 (SA) s 45 and Retirement Villages Regulations 2017 (SA) reg 18].

A copy of the policy must be provided to residents within 5 business days of their request [Retirement Villages Act 2016 (SA) s 45(3)].

An operator must take all reasonable steps to resolve a dispute they may have with a resident in accordance with their dispute resolution policy unless the resident agrees to resolve the dispute otherwise or the South Australian Civil and Administrative Tribunal agrees to resolve the dispute between them [s 45(3a)].

A dispute resolution policy must, among other things, address [Retirement Villages Regulations 2017 (SA) reg 18]:

If the dispute does not resolve despite reasonable attempts in accordance with the dispute resolution policy, a party to the dispute may apply to SACAT to resolve the matters in dispute [Retirement Villages Act 2016 (SA) s 46].

Always seek legal advice before applying to SACAT.

An application may not be made to SACAT concerning an act or omission that occurred more than 4 years beforehand, except with the permission of SACAT [s 46(2)(b)].

If SACAT finds that a party to the dispute has breached the Retirement Villages Act 2016 (SA), a residence contract or a residence rule, or an operator has acted in a harsh and unconscionable manner, SACAT may make orders [s 46(3)]:

SACAT may make an order restraining a person from engaging in certain conduct (a restraining order) if satisfied that [s 46(8a)]:

It is an offence to contravene a restraining order [s 46(8c)].

SACAT may at any time refer the dispute for mediation, particularly if mediation has not yet been attempted [South Australian Civil and Administrative Tribunal Act 2013 (SA) s 51].

A dispute as to an exit entitlement may alternatively be brought before a court with jurisdiction to hear and determine a claim founded on contract for the amount in dispute [Retirement Villages Act 2016 (SA) s 46(9)]. Depending on the amount sought, this would most likely be the Magistrates Court or District Court.

For more information about resolving a retirement village dispute, see the SA Government resources on retirement villages.