Shire council decision on retirement village residents sends clear signal

Victoria’s Mornington Peninsula Shire Council has set an important benchmark, voting to lock in a differential rate for retirement village residents and preserve a 20% discount on council rates.

The Retirement Living Council (RLC) said the decision protected older Australians from an unnecessary cost hit while recognising the unique way retirement communities operate.

The council previously offered a 20% discount to individuals living in retirement villages, but the reduction was removed in early 2025 when the Victorian Government’s valuing services were centralised across all local government areas with the Valuer-General Victoria.

RLC Executive Director Daniel Gannon said the council deserved praise for “backing common sense” and “delivering a huge cost of living win for older Victorians”.

“Mornington Peninsula Shire Council has shown the leadership older Australians deserve, protecting residents from an unfair rates hit,” Daniel said.

“Retirement village residents shouldn’t be treated like standard householders when they already pay for much of what they use. Residents already fund much of their own infrastructure and services. Rate-setting has to reflect that reality.”

He said the council’s decision sends a clear message that local government can listen, apply common sense and respond fairly. Other councils across Australia should pay attention, he added.

“For people on fixed incomes, a rates rise isn’t ‘small’ – it can mean less money for food, medication and healthcare.

“We’ve seen rates rise by as much as 800% in parts of Queensland,” Daniel said.

“Residents told us they cut back on food, sold cars, and even cancelled cancer treatment to cope. These changes often hit single women disproportionately hard, given that 63% of retirement village residents are women.”

Nancy Taylor, Chair of the Mornington Peninsula Retirement Village Alliance who lives in a retirement village in Capel Sound, thanked the Council for its support.

“This is a huge relief to those living in retirement villages on the Mornington Peninsula. We were facing an unprecedented increase in our rates of more than 20%,” Nancy said.

“Thank you to the Shire Council for your representation and to the members of MPRVA for the work they put into our submissions and lobbying of ward councillors.”

A cost adjustment will now be made for general ratepayers – one dollar a quarter – to support the outcome.