Councillors on Victoria’s Mornington Peninsula Shire have unanimously voted to reduce this year’s rates for 2,215 retirement village units by 20%, defying recommendations from Council bureaucrats.
The decision, which will cost the Shire approximately $460,000, applies across the region’s 15 retirement villages. Mayor Anthony Marsh said he visited Centennial Living's Beleura Retirement Village in Mornington with Deputy Mayor Paul Pingiaro ahead of last Tuesday’s meeting to hear residents’ concerns firsthand.
“The point that really stood out to me was the amount of infrastructure and community facilities (residents) pay for as part of (their) retirement village,” the Mayor said.
The rate cut is only for this year and comes after changes to how retirement village units valuations were determined by the Valuer-General Victoria (VGV). Previously, the Council applied bulk discounts to the Capital Improved Value of the units to reflect their restricted market value.
Retirement villages operating under a single ownership model including loan-lease or licence arrangements had been given a 20% rebate while a 15% discount was applied where residents purchased the dwelling but leased the land from the village operator.
Following VGV advice, those discounts were removed and full market valuations were applied from 1 January this year.
RLC applauds Council decision
Retirement Living Council Executive Director Daniel Gannon applauded the councillors' decision to maintain the discounts.
"Over the years, people like me have been quick to criticise councils over planning delays or decisions that hurt communities rather than build them," Daniel said.
"Mornington Peninsula Shire Council established a new and positive benchmark. But to understand this we must backtrack to earlier in the year when the Victorian Valuer General made a ruling that would have increased rates for retirement village residents by up to 20%. It wasn’t council’s decision, but would have had a devastating financial impact on residents, many of whom are on fixed pensions.
Daniel said the unanimous decision of the councillors "showed empathy and common sense".
Rates have been a hot topic for retirement villages in 2025, with Cairns Regional Council in Queensland imposing new rates on retirement village units, up to 800%.
"Councillors on the Mornington Peninsula took the opposite approach. And in doing so, sent a powerful message to the rest of the country – good local government understands its residents. It listens, it collaborates, it protects its community, and it doesn’t force residents to choose between paying rates or private cancer treatment," added Daniel.
