Opinion Piece - Retirement Village Residents Locked Out of Government Equity Scheme

March 25, 2026 - While the Australian Government’s Home Equity Access Scheme (HEAS) is designed to help "asset-rich, income-poor" retirees supplement their income, it remains largely inaccessible to those in retirement villages. This creates a significant financial gap between traditional homeowners and village residents, writes RVRA President Roger Pallant.

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T: 1300 787 213 | E: admin@rvra.org.au | W: https://www.rvra.org.au
PO Box 3349 Asquith NSW 2077
Retirement Village Residents Locked Out of Government Equity Scheme
Australia’s population is ageing rapidly, and governments frequently remind retirees that if they are “asset
rich but income poor”, they can draw on the equity in their home to help fund retirement.
One of the key tools available is the Home Equity Access Scheme (HEAS), administered by Services
Australia.
The scheme allows older Australians to receive a government loan secured against their home, enabling
them to supplement their retirement income while continuing to live there. It is an option often promoted
to retirees who need extra financial support later in life.
But there is a problem.
For many Australians living in retirement villages, the scheme is effectively out of reach.
A Structural Inequity
In New South Wales alone, tens of thousands of older Australians live in retirement villages governed by
the Retirement Villages Act 1999 (NSW).
While residents have invested substantial amounts to secure their home in a village, most do not actually
hold the freehold title to the property. Instead, they typically live under loan-licence or leasehold
arrangements.
These arrangements work well in many respects and provide secure housing for older people. However,
they create an unintended consequence when it comes to accessing government equity schemes.
Because the HEAS requires the government to place a charge over real estate title, residents whose names
are not on the land title cannot usually use their retirement village unit as security.
The result is a clear inequity: two retirees with similar levels of housing wealth may be treated very
differently. One who owns a conventional home can access the scheme. The other who lives in a retirement
village often cannot.
The Reality for Village Residents
Many people move into retirement villages after selling the family home and using the proceeds to pay the
ingoing contribution required to secure their unit.
Later in life, when health costs increase or living expenses rise, these residents may find themselves asset-
rich but cash-poor.
Ironically, while their wealth is tied up in their retirement village home, they may be unable to access a
government scheme specifically designed to allow retirees to unlock housing equity.
For residents, this can feel like being financially trapped.
Time for a Policy Conversation
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