Retirement village costs generally include upfront deposits, an ingoing contribution, ongoing village charges and a deferred management fee when leaving a retirement village. The exact costs and contract arrangements vary depending on the retirement village and type of agreement you choose. At The Salvation Army Aged Care, our retirement villages operate under Loan Licence or Residential Tenancy Agreements.
There are four main categories of costs when it comes to moving into a home in a Salvation Army retirement village.
| Payment | What is it? | When is it paid? |
| Upfront deposits | Deposits paid to secure your next home | Before moving in |
| Ingoing contribution | Payment giving you the right to occupy the home | When entering a village |
| Recurrent charges (ongoing fees) | Costs associated with operating and maintaining the village | Monthly |
| Deferred Management Fee (10% for 3 years) | Fee payable when exiting the village | Upon exit |
Upfront deposits
If you have chosen a home that was for sale, you will be required to pay two deposits before moving in:
All deposits are fully refundable.
Ingoing contribution (purchase price of the property)
An ingoing contribution is a one-off payment that gives you the right to live in a home within a retirement village, whether it be an apartment or a villa - this is the purchase price. At The Salvation Army, we offer our homes under a Loan Licence Contract (which means you are a non-interest holder).
Ongoing retirement village fees and charges
In NSW, these are referred to as recurrent charges. These are payments made to cover the ongoing costs of operating a retirement village. These fees are paid monthly through your statement and cover items relating to amenities, staff wages, gardening, council rates, insurance and capital maintenance. Please note that a portion of recurrent charges is set aside to contribute to the Capital Works Fund as part of capital maintenance requirements.
From 1 July each year, the recurrent charges generally increase annually - depending on the village, the increase may be in line with the consumer price index (CPI) or higher. If charges increase by more than CPI, residents must approve the increase through a ballot vote.
In Queensland, these ongoing charges are known as general services charges and are used for the same purposes mentioned above. In addition to the general services charges, there is a maintenance reserve charge, which is used to fund items relating to repairs, servicing and capital maintenance.
Any replacement of items in NSW and Queensland is covered by the operator (The Salvation Army in this instance), whether it’s in your home or in the communal facilities. However, repairs, servicing and capital expenditure are covered through recurrent charges.
What is a deferred management fee (exit fee)?
A deferred management fee (DMF), also known as an exit or departure fee, is a fee you will pay upon leaving a retirement village. At Salvation Army retirement villages, the DMF is calculated as a percentage of the ingoing contribution price and the length of your residence.
Our DMF is capped at 30% of your ingoing contribution after three years of living in one of our villages:
Please note: This fee is not applied in a rental model, like Shaftesbury Court Retirement Village, as an ingoing contribution is not paid.
Example: If you paid an ingoing contribution of $500,000 and you exited the village after three years, a 30% deferred management fee would equate to $150,000, before considering any other applicable adjustments or contract-specific arrangements.
Note: This is an example only. Actual costs depend on your individual contract.
What is a Loan Licence contract?
A Loan Licence is the type of contract used when entering a retirement village operated by The Salvation Army. You will be required to pay a one-off ingoing contribution payment to us, the operator, in exchange for a lifetime non-registered right to live in a home in the village. You will not own the property, and the ingoing contribution you paid is refunded minus the exit fees (DMF) when you leave.
What is a Residential Tenancy Agreement?
A Residential Tenancy Agreement (RTA) is the type of contract used when moving into a rental village like Shaftesbury Court Retirement Village. The current lease term for this contract is 12 months.
Have a few more questions on retirement living that aren't listed here? Visit our full FAQ page below.
No, The Salvation Army will own your home in the village, but you have a licence to occupy the home for as long as you choose.
At our retirement villages where homes are for purchase, we operate under a Loan Licence contract which means there is a contractual right for a resident to occupy an apartment or villa and use shared facilities, without owning the property title. The village operator has ownership, and the resident pays an upfront ‘ingoing contribution’ (the purchase price of the property) on the agreed settlement date, plus ongoing recurrent charges to maintain the services and amenities at the village.
If you choose to leave the retirement village, your ingoing contribution will be refunded minus the deferred management fee.
Note: This does not apply to rental retirement villages.
The cost of moving into a retirement village generally consists of the following:
The Salvation Army Aged Care acknowledges the Traditional Owners of the land on which we meet and work and pay our respect to Elders past, present and future.
We value and include people of all cultures, languages, abilities, sexual orientations, gender identities, gender expressions and intersex status. We are committed to providing programs that are delivered through the lenses of local mission delivery, sustainability, safety culture and inclusive practice. We are committed to the safety and wellbeing of people of all ages, particularly children.
