Lifestyle Communities Limited (ASX: LIC) has announced that it was unsuccessful in its appeal before the Court of Appeal – Supreme Court of Victoria concerning Deferred Management Fees (DMF). The Melbourne-based company develops, owns, and manages affordable independent living residential land lease communities, with twenty-nine such communities under contract, in planning, in development, or under management. The Court of Appeal’s decision, received today, August 21, 2026, upheld the orders made by President Woodward in VCAT on July 25, 2025. These orders related to the calculation of DMFs based on the resale price of homes, finding against the company’s appeal.
This outcome means Lifestyle Communities will continue to operate under the VCAT ruling from July 2025. As previously disclosed, the company had already recognised a provision in its Financial Statements for the repayment of DMFs collected from previous homeowners who were impacted by these initial VCAT orders. This proactive step aimed to account for potential liabilities arising from the ongoing legal challenge.
Following the original VCAT ruling on July 7, 2025, Lifestyle Communities evolved its business model to amend the DMF calculation method. The company now bases its Deferred Management Fees on the purchase price of a home, pro-rated over a five-year period to a maximum of 20% of this price. This revised methodology is consistent with the July 2025 VCAT ruling and aligns with the recently proposed Consumer Legislation Amendment Bill 2026, indicating a broader industry shift.
Lifestyle Communities stated it would digest the full details of the Court’s decision. The company further advised that it would provide an additional update to the market as required, ensuring transparency regarding any further implications or actions stemming from the judgment.
