Many older Australians move into a retirement village expecting to lose access to their government-funded aged care. The good news? That’s a common misconception, and understanding the distinction could make a real difference to your quality of life.
What Is a Retirement Village, Really?
A retirement village, sometimes called an independent living unit or ILU, is a private residential community designed for older Australians who can largely look after themselves. You own or lease your home. You manage your own daily life. The village may offer communal facilities and some optional services, but it is not a government-regulated aged care facility.
If you are confused by the terminology, our guide on understanding the different types of aged care explains the differences between retirement living, home care, and residential care.
This distinction matters enormously. Retirement villages are not classified as residential aged care. That means the Australian Government does not treat your ILU as a nursing home, and it does not strip you of your entitlements.
Does Moving To a Retirement Village Cancel My Support at Home Funding?
No, it does not. Your retirement village unit is your home, and the Support at Home program is designed to help older Australians remain living independently at home for longer. The program does not specify what type of dwelling your home needs to be.
Under the Aged Care Rules 2025, an individual’s principal home may be in a retirement village. This means if you are approved for Support at Home and then move into an ILU, your funding follows you. Your provider simply delivers services to your new address at the retirement village unit.
What Services Can Be Delivered Inside A Retirement Village?
Broadly speaking, anything your Support at Home budget covers can be delivered to you inside a retirement village, just as it would be in any private home.
Common services include:
- Personal care such as showering, grooming and dressing
- Nursing care and wound management
- Allied health including physiotherapy, occupational therapy and podiatry
- Domestic assistance such as cleaning, laundry and meal preparation
- Social support and transport to appointments
- Care management and coordination
Check out our Complete Support at Home Service List to see exactly what is and isn’t included.”
One important point: your Support at Home funding is for your personal care needs. It cannot be used to pay for village-wide services, levies or communal amenities already covered by your retirement village contract.
What About The Village’s Own Services?
Many retirement villages offer their own optional support services, from gardening help to meals. These are separate from your government-funded Support at Home budget and are usually billed by the village operator directly.
Think of them as two separate layers. The village provides the community and the lifestyle. Your Support at Home provider delivers your personalised care. The two can work alongside each other without conflict.
When it comes to choosing who delivers your government-funded care, you have three main options:
- Use the village’s own provider: Many large retirement village operators have an attached home care division that operates under their brand, making coordination seamless.
- Use a partnered provider: Some villages partner with specific external home care providers to offer dedicated on-site services to residents.
- Choose your own independent provider: You have the legal right to choose any registered Support at Home provider that services your area.
While village-affiliated providers can be convenient, the choice is always yours. If you are unhappy with your services or want a provider that specialises in your specific care needs, you are free to change providers at any time without penalty.
How To Check You’re Set Up Correctly
If you already receive Support at Home and you’ve recently moved into a retirement village (or are planning to) here’s what to do:
- Notify My Aged Care of your address change. Your Support at Home record needs to reflect your current address.
- Contact your provider. Let them know your new location so they can confirm service delivery to your retirement village.
- Review your care plan. Moving is a great time to check your services still match your needs.
- Ask about the village’s own services. Understand what’s included in your village contract so you don’t double up or leave gaps.
- Consider a Support Plan Review. If your needs have changed since moving, you can request a review through My Aged Care. Read this article for more information.
A Quick Real-Life Example
Consider Joan, who lives in an independent living unit in a retirement village in regional Victoria. She receives Support at Home Classification 3 funding. Her provider visits twice a week for personal care and once a fortnight for domestic assistance. The village itself provides communal dinners and garden maintenance through her monthly levy. Both arrangements run in parallel, giving Joan a full circle of support without any funding conflict.
What If I Haven’t Applied For Support at Home Yet?
If you live in a retirement village and haven’t yet applied, you may still be eligible. To be approved for the Support at Home program, you generally need to:
- Be aged 65 or over (or 50+ if you’re an Aboriginal or Torres Strait Islander person)
- Have difficulty managing some everyday tasks due to age-related factors
- Be living at home (including in a retirement village or independent living unit)
- Be an Australian citizen or permanent resident
The first step is calling My Aged Care on 1800 200 422 to arrange a free assessment or follow our step-by-step guide on how to apply for Support at Home.
How Aged Care Decisions Can Help
Navigating the overlap between retirement village living and government-funded care can feel confusing, especially when the rules aren’t always clearly explained. This is where Aged Care Decisions’ free, independent service can help.
Our advisers can:
- Confirm your eligibility for the Support at Home program
- Help you understand what your funding covers
- Match you with registered providers who deliver services in your area
- Send you an Options Report tailored to your needs, budget and location
Ready to get started? Contact Aged Care Decisions today. It’s 100% FREE, independent and there’s no obligation.
Get our FREE personalised Options Report today
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