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]:
- a description of all fees and charges (whether on entry or exit or once off or recurrent), including the amount or how the amount is to be calculated
- what the operator does with the fees and charges
- any utilities, services or facilities provided or available to residents that the operator has an interest in or gains a benefit from
- the way the resident’s exit entitlement will be calculated and the effect of s 30 of the Act (where the resident leave retirement living to enter an aged care facility)
- the insurance arrangements that are in place for the retirement village
- estimated exit entitlements and exit fees payable if the right to occupation is terminated at 2 years, 5 years and 10 years after the contract is entered into
- a statement advising of the possibility of a fee or charge arising for the operator to recover an unforeseen expense (known as a special levy), as well as information about any special levies already in place.
The disclosure statement must also include information about [s 21(1)(b)]:
- the composition of occupation types within the retirement village (how many residents occupy their residence by virtue of a lease, licence or ownership)
- any limitation or requirement that applies in relation to a resident's choice of provider for utilities, services or facilities (for example, electricity) that are available at the village (known as embedded networks)
- any major capital expenditure project in place or planned for the next 2 years.
Legal and Financial Advice
The disclosure statement must include a statement advising that [s 21(1)(c)]:
- the disclosure statement does not form part of the residence contract, and is intended only as a summary of certain information in the contract
- the prospective resident must ensure they fully understand the terms of the residence contract itself, rather than relying on the disclosure statement
- the prospective resident should seek independent legal and financial advice about the proposed residence contract.
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].
Disclosure Statement : Last Revised: Wed Feb 4th 2026
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