NSW asset management plans
Operators were recently briefed by NSW departmental officials on the new NSW Retirement Villages Amendment (Asset Management Plans) Regulation 2021, which requires operators to prepare and maintain an asset management plan for a village's major items of capital.
A transitional period does apply to allow operators to adhere to the new laws and prepare the plan, meaning the penalty provisions for non-compliance will not commence until 1 September 2020. The regulation for asset management plans commenced on 5 February 2021 together with the guidelines.
Key features of the reforms include to:
- prepare and keep up to date a 10-year asset management plan for the village's major items of capital (including items shared with other villages or aged care businesses),
- record certain information in the asset management plan,
- prepare and three-year report for capital maintenance of major items and capital, and
- make the asset management plan available for all current and prospective residents.
There were a range of concerns regarding implementation and the complexities associated with including all assets valued at more than $1,000.
These issues are being forwarded to the department for a written response and further discussion. Access the full departmental presentation on these new asset management plans' reforms