The New Zealand Aged Care Association reports an increasing number of Australian retirement firms have asked the industry body to arrange tours of Kiwi retirement villages.

Chief executive Martin Taylor believes their mixed care model, which incorporates residential and hospital facilities on the same property, holds appeal.

New Zealand retirement firms Ryman Healthcare, Summerset and Metlifecare make provision for medical support in their villages. In addition, they sell premium services to retirees creating another profitable revenue stream.

"The New Zealand model developed where people said I've got a unit in a village and I am really happy, so why can't I have rest home care delivered here? Why should I shift 50 metres for those services?" Taylor said.

By contrast, Australian villages operate in a more regulated environment though Cam Ansell, national head of aged care at Grant Thornton, believes regulations will start easing in the next five to 10 years.

He said that the Australian government will realise that "the next generation of consumers won't be told what they can and can't do with their money".

Ansell said that New Zealand’s mixed-model approach attracts international interest because it is one of the best in the world.