Costs & Contracts
Moving, Living in
We understand that moving into a retirement or residential aged care community is an important decision, and that you’ll want to understand all the costs to ensure you're making the right decision for you. To help make things a little easier, we’ve broken down the costs into three categories: Moving In, Living In and Leaving. Click below to find out more about each of these costs.
Just like moving into any residence, moving into a retirement community involves upfront costs.
Also known as an ‘ingoing contribution’ or ‘entry payment’, an occupancy payment is a once-off refundable payment made by a resident to Aveo in return for obtaining the right to live in a home in an Aveo community under the terms of a retirement village contract.
To find the occupancy payment for a particular community, please call 1800 957 940 to speak to one of our friendly staff.
In addition to the occupancy payment, a resident may be required to pay legal costs, lease registration costs (including surveyor costs) and other charges payable to any external village trustee. Full details of these costs are contained in the retirement village disclosure statement which is available on request.
No stamp duty
In Aveo communities, residents obtain a right to live in their home under the terms of either a long-term registered lease or a licence agreement (depending on the Aveo community they choose), therefore residents do not pay stamp duty.
The right to change your mind
While so many Australians love calling our friendly communities home, we want you to take the time to make sure this is the right decision for you.
21 day cooling-off period
Provided you do not move into your new home in the meantime, you can cancel your retirement village contract within 21 days of signing it without paying any penalties.*
Aveo’s 21 day cooling-off period runs concurrently with any other cooling-off rights you may have that apply to your entry into the Aveo community under the retirement villages legislation that applies in your State.
*Terms and Conditions apply.
Settling-in Period – Your Money Back Guarantee
If you change your mind after moving into your home in an Aveo community, then provided you terminate your retirement village contract within the time required, Aveo will refund your occupancy payment paid to Aveo with no exit fee payable.*
Residents who choose the Aveo Certainty and Aveo Way retirement village contract options can change their mind within the first six months of moving into their new home in an Aveo community.
Residents who choose the Aveo Essentials retirement village contract option can change their mind in the first 90 days of moving into their new home in an Aveo community.
For the Aveo Certainty and Aveo Way retirement village contract options, Aveo’s settling-in period runs concurrently with any other statutory settling-in periods you may have that apply to your entry into the Aveo community under the retirement villages legislation that applies in your State.
*Terms and Conditions apply. Other costs may be payable.
Refundable Accommodation Deposit (RAD)
A lump sum payment for accommodation in an aged care home. This is the price of a room (single occupancy), in lump sum form, that residents have agreed with their aged care home to pay.
Residents can pay their accommodation price in full by RAD or they can pay via combination of a smaller RAD and Daily Accommodation Payment (DAP) or they can pay in full by DAP.
If the residents and their aged care home agree, the resident can ask their provider to deduct certain amounts from the lump sum they have paid – for example for care fees.
Refundable Accommodation Contribution (RAC)
If you are eligible for a contribution by the Australian Government for payment towards your accommodation in an aged care home, this lump-sum is called a ‘Refundable Accommodation Contribution (RAC)’.
Just like living in any residence, living in a retirement community involves ongoing costs
Residents pay service fees on a weekly, fortnightly or monthly basis as a contribution to the day to day running costs of the Aveo community. The setting of service fees, including the annual budgeting process, occurs in accordance with the retirement villages legislation that applies in the State in which the community is located.
Service fees vary by Aveo community and can vary by the type of home you choose within a community. Please ask a sales consultant for the service fees that apply to your chosen home in the Aveo community. Details of the services fees payable are also included in the retirement village disclosure material issued to prospective residents.
To find the service fees for a particular community, please call 1800 957 940 to speak to one of our friendly staff.
Services fees cover things such as the costs of:
Basic daily fee (85% aged care pension)
This covers living costs such as meals, power, cleaning and laundry.
Means-tested care fee
This is worked out by the Department of Human Services, based on your financial situation and is a contribution towards the cost of your care.
Some people will have their accommodation costs paid in full or in part by the Australian Government, while others will need to pay the accommodation price agreed with the aged care home. The Department of Human Services will tell you which applies to you based on an assessment of your income and assets.
Daily Accommodation Payment (DAP)
The daily payment for accommodation in an aged care home. The aged care home will work out the DAP based on a legislated formula that converts the RAD price to a DAP price.
The resident makes this payment on a regular basis, up to a month in advance. The DAP is not refunded when the resident leaves the aged care home or decides to pay a RAD.
The resident can choose to pay a combination of a RAD and a DAP for their accommodation costs. The resident can request the DAP to be deducted from any RAD they have paid.
Daily Accommodation Contribution (DAC)
The daily contribution for accommodation in an aged care home that residents would need to pay, if they also receive Australian Government assistance with their accommodation costs.
Residents make this contribution on a regular basis, up to a month in advance. The DAC is not refunded when the resident leaves the aged care home or decides to pay a RAC.
Residents can choose to pay a combination of a RAC and a DAC for their accommodation costs.
When it comes to leaving the community, we want to make this process as easy as possible for you.
The exit fee (also known as a deferred management fee ‘DMF’ or departure fee) allows a resident to move into an Aveo community and benefit from the communal facilities, management and services. The exit fee is deferred and deducted when a resident’s occupancy payment is refunded to them. In essence, residents can enjoy now, and pay later.
The exit fee, which is one of Aveo’s only forms of income, is used to keep our business strong and ensures we can continue to provide the lifestyle our residents enjoy now, and into the future. Depending on the retirement village contract you choose (Aveo Essentials, Aveo Way and Aveo Certainty) the exit fee is calculated over the first 2, 3 or 5 years of living in your home in an Aveo community and is capped at 25% or 35% of the occupancy payment you have paid. The exit fee may contribute to:
Aveo Certainty Membership Fee
A membership fee of $2,000 per annum applies to our Aveo Certainty retirement village contract option. This fee allows you to access certain transfer options and is paid when your exit entitlement is paid to you. See our Contracts page for further details of the available transfer options.
No hassles when leaving
No sales commission and marketing costs
You will not be charged any sales commission or marketing costs by Aveo or Aveo Real Estate related to finding a new resident for your home after you leave the Aveo community.
If a new resident is not found for your home, Aveo will refund your occupancy payment less fees after six or 12 months, depending on your retirement village contract option and the location of your Aveo community. This gives you real peace of mind of having certainty of when your funds will be paid to you.
No refurbishment costs
Neither you nor your family want to be burdened by any renovations to the home. That’s why when it’s time to find a new resident for your home, Aveo will take care of, and pay for any works that we think are needed to prepare your home for a new resident (this is provided you do not intentionally damage or make changes to your new home).
Aveo’s retirement village contracts are designed to allow residents to know exactly how much their exit entitlement will be when the time comes to leave the Aveo community. This gives you peace of mind as you won’t be exposed to the fluctuations in any property market.