Retirement villages are no longer just homes for older Australians – they are vital social infrastructure assets underpinning Australia’s economic productivity and long-term fiscal sustainability.
This was the key message emerging from the National Retirement Living Summit’s Stronger Communities, Stronger Economy panel in Brisbane a fortnight ago, which brought together top economists and policy leaders to explore the nation’s demographic challenges and opportunities.
Panellists included Adelaide Timbrell (Senior Economist, ANZ), Jo Masters (Chief Economist, Barrenjoey), Martin Stokie (Productivity Commissioner) and the Property Council’s Matthew Kandelaars, who discussed the need for strategic, preventative investment in community infrastructure – with retirement villages front and centre.
Mr Stokie emphasised the need to streamline regulation across tiers of government and better align funding to promote care and housing solutions that work.
“We are part of the Prime Minister’s and the Treasurer’s roundtable on productivity, which will be released in a couple of months,” Mr Stokie said.
“One of the reports relates to delivering the care economy more efficiently. We will have things to say and to add into that process. And most of that is about: can we streamline some of the regulation?
“Can we enable better sharing of the monies that are available across tiers of government? And can we invest in prevention before things actually become bigger issues?
“So, a stitch in time saves nine – now they’re the things that government can do. But then ultimately, the community, private sector service delivery, and not-for-profits will need to step in. But we’re strongly of the view that we need to change some of the preconditions, or else, if we don’t, we’ll just have more of the same.”
ANZ economist Adelaide Timbrell said retirement living is a key productivity and housing supply lever, especially when aligned with tax reform.
“I think one really great productivity booster – or something that would be a housing supply booster – would be to get rid of stamp duty, and that’s because what it does is it makes it harder for young people to build wealth,” she said.
“It makes it harder for older people to give up those larger homes that are for families, because they’re getting bitten on the other side.
“So that would be my number one productivity booster: increase the efficiency of the mix of who’s living in what, by making it easier for people to move to the places that fit their life at those different stages, rather than hoard from the beginning to the end.”
Barrenjoey’s Jo Masters said multi-level government collaboration is the only pathway forward.
“I’m going to say state, federal, local government relationships at the end of the day,” she said. “So much of the reform that economists talk about requires a degree of collaboration and connectivity across those three types of government, and we haven’t done that very well – but we know we can do it, because we did it in the pandemic. Bring back team Australia.”
Retirement Living Council Executive Director, Daniel Gannon, said the proof is in the pudding – retirement communities are key nation-building social infrastructure.
“Australia’s rapidly ageing population is not just a demographic trend – it’s an economic reality,” he said. “Retirement villages support productivity by promoting independence, reducing pressure on aged care and hospitals, and enabling healthier ageing at home.
“This is what happens when a sector is committed to customer service, transparency, and quality infrastructure. Operators are creating vibrant communities that meet both care and lifestyle needs – and this benefits the entire economy.”
Mr Gannon also said simplifying outdated planning systems and improving regulatory coordination will unlock new supply and accelerate crucial investment in the sector.
“We need regulatory reform that reflects reality – streamlined, efficient, and nationally consistent. That’s how we support older Australians and build an economy fit for the future,” he said.
As Mr Kandelaars noted, “retirement villages are ready-made productivity boosters. They provide age-friendly housing that works for the individual, the system, and the country – and they deserve the policy recognition that reflects that.”