An exit entitlement is a payment made to a resident when they permanently leave a retirement village.
Payment of your exit entitlement usually depends on your home being leased or sold. This process can take some time.
Who is entitled to an exit entitlement
Your residence contract will state if you are entitled to an exit entitlement.
You must hold a:
- a lease for life
- a licence under a residence contract.
How is an exit entitlement calculated
The amount you received is generally based on the ingoing contribution you paid when you moved in, less:
- leaving fees or charges
- renovation costs
- other amounts you owe under your contract.
Check your residence contract
You should have received a disclosure statement before you signed your residence contract. You can check your residence contract to see:
- how the exit entitlement payment is calculated
- when you will be paid your exit entitlement
- whether you need to pay any reinstatement or renovation costs
- any other fees payable to the village operator.
Timeframe to pay exit entitlement
An operator has up to 12 months after you permanently move out to pay exit entitlements.
An operator may have to pay an exit entitlement earlier than 12 months if:
- your residence contract requires it
- a new resident moves into the unit
- you and the operator agree on an earlier payment
- the State Administrative Tribunal has terminated your residence contract.
Residents who left before 1 September 2026
You must receive your exit entitlement or have your buyback completed by:
- 1 September 2027
- an earlier date if it applies e.g. in your contract.
This requirement does not apply if the operator already has an approved extension or exemption from the Commissioner.
Operators needing more time to pay
There are two ways an operator can get more time to pay exit entitlements:
- you can give them an extension
- they can apply to the Commissioner for Consumer Protection.
You give operator more time
You can give the operator written approval for more time to:
- pay your exit entitlement
- complete a buyback of your home.
You can withdraw the extension by giving them written notice more than 3 months before the extension payment is due.
Operators applying for an extension or exemption
An operator can apply for:
- an extension of up to 12 months
- an exemption of up to five years.
The Commissioner for Consumer Protection must approve the extension or exemption for it to be valid.
See Extensions and exemptions for exit payments for how to apply.
Exit entitlement statements
An operator must make a statement showing how the exit entitlement is worked out. They must give it to you or a person entitled to the payment.
Operators can:
- use the exit entitlement statement form or
- make their own statement containing the required information set out in:
- schedule 11 of the Regulations
- section 29(3)(a) of the Act.
The statement must include:
- the name and address of the retirement village
- the name, contact details and ACN or ABN of the retirement village operator
- your name and contact details or your authorised representative
- the address and unit number, if applicable, of your home
- the date you moved into the home
- how long you lived in the home
- the date you permanently moved out of the home
- the ingoing contribution you paid
- any capital gain or capital loss
- how all deductions from exit entitlement such as outgoing fees and charges have been calculated
- the total exit entitlement after all deductions
- when and how the exit entitlement is to be paid
- whether the exit entitlement is paid to you or a person entitled to it
- details of the person who will receive the payment.
What to do if you don’t receive an exit entitlement statement
Check your residence contract to see if you are entitled to an exit entitlement.
Contact the operator to request an exit entitlement statement.
Contact Consumer Protection if the operator does not provide the statement in a reasonable time after you requested it.
Operators who fail to provide an exit entitlement statement may face a penalty.