An earlier draft of the script was more of a black comedy.
Charles McCallum improvised the story about his character Lance serving in the armed forces during a war.
The movie score is by German synthesizer pioneer Klaus Schulze, with tracks from the albums DIG IT, BODY LOVE, DUNE and "X.".
The upstairs rooms in the retirement home were done on a soundstage.
The movie in 1982 was the winner of the Best Film award at Sitges International Fantastic Film Festival in Spain. Richard Kuipers at the 'Australian Screen' website commented that ''-'Next of Kin' was all but ignored in Australia yet won Best Director, ahead of Sam Raimi for The Evil Dead (1981), at the Sitges International Festival of Fantastic and Terror Films - one of the most prestigious awards in fantasy cinema.''