Cairns Council is proposing to hike rates for residents for "equity and fairness" purposes to "ensure that every dwelling makes a fair and reasonable contribution towards the infrastructure and services that Council deliver". For one village, this means an 800 per cent rates increase.
Calculations show a pensioner living on approximately $1,100 per fortnight will be hit with an increase of up to $75 per month.
The proposal has caused fear and anxiety in the community, with the RLC currently surveying residents who have described the rates hike as "immoral" and "unjust".
As it stands, retirement villages in Cairns are a single parcel of land from which rates are calculated. Cairns Council is proposing to break up that parcel of land and charge each individual resident rates for their unit within a retirement village.
RLC Executive Director Daniel Gannon said Council should be ashamed of its "cruel cash grab".
"Cairns Council is now flagging its intention to spread out this cash grab over two years instead of one as originally proposed, and they think residents should be grateful for this so-called generosity," he said.
"Whether it hits you all at once or in two blows, a massive rates increase is still a knockout.
"As far as public policy goes, this is unacceptable and unconscionable. Council isn't easing the impact of these shocking rate increases - they're making it worse and stretching it out.
"Older Australians are already struggling to meet rising prices, even for the non-negotiables in life. We fear these rate increases will force residents to go without groceries, medication, or cooling."
The proposal comes as a new survey from COTA Australia reveals that older Australians - some of the nation's most vulnerable - are increasingly anxious about soaring grocery prices, energy bills, healthcare and medication costs leading up to the Federal Election.
The RLC is also calling on Cairns Council to publicly outline what new services will be on offer to residents who face the rates hike.
Because impacted retirement villages are predominantly situated on private land, Cairns Council only provides diluted services to residents compared to those living in other accommodation in the region.
Residents already contribute to upgrades of village roads, street lighting, lawn and garden maintenance in common areas, sewerage services, the removal of vermin and snakes, and pay a percentage of Cairns Council water rates.
"The sad truth is that Cairns Council is demanding more money from older Australians, but services won't change one bit. This is a cruel cash grab at the worst possible time," Mr Gannon said.