Frequently asked questions
By legislative mandate, Retirement Village Operators in New South Wales need to have an Asset Management Plan in place by 1 July, 2022. Village Operators are looking for information to help them comply with the new regulatory requirements. Here are some resources to assist:
1) "What does the NSW legislation require?"
The details are available at the NSW government's Fair Trading web site. Here are the required components:
Asset Register of the Village's major items of capital (any asset over $1,000), as well as information about the effective life of the assets.
Maintenance Schedule, both actual and estimated, of major items of capital, including information about replacement.
Three-year Report on capital maintenance that helps guide expenditures on major items in the Annual Budget.
Note that ASSETjourney meets or exceeds all of the legislative requirements, bringing you an efficient, effective, and compliant solution.
2) "What are the benefits of an Asset Management Plan?"
Even though the new regulations can seem burdensome at times, the goal is better transparency for residents and improved operations for the Village. Assets that are well-maintained generally last longer. Also, having a clearer view into maintenance and future costs of Village assets gives residents, as well as management, guidance on what kind of fees and expenditures to expect in the future.
3) "How do I go about preparing an Asset Management Plan (AMP)?" Our partner, MDFM, has a "5 Step Guide To Preparing An Asset Management Plan". Here are the steps:
Step 1: Determine what system you will use for your asset management plan.
Step 2: Capture the asset data.
Step 3: Import the asset data into your chosen system.
Step 4: Prepare a maintenance schedule for each capital item.
Step 5: Adequately resource the ongoing management of the system.
4) "Will other states be adopting the same or similar legislation?" It is generally expected that other states will follow NSW's lead on this matter and also require Asset Management Plans for retirement village operators. The details, of course, will depend on what legislation is passed in each of the states, but it is likely the requirements will be close to the NSW regulations. See this article on proposed legislation affecting Queensland Retirement Villages.
5) "How do I determine the Effective Life of an asset?" The Australian Tax Office (ATO) has tables that give guidance on the effective life of assets.
6) "Was the 1 July 2022 deadline changed?" An April article in the The Weekly Source raised the question whether village operators are still required to have an Asset Management Plan in place by 1 July 2002. The article stated that the deadline still stands, but in recognition of the challenges of meeting that date, the NSW Fair Trading will not actively look to penalise operators who "show adequate evidence of attempting to prepare the data well before the deadline".
Does this let operators in New South Wales off the hook to meet the deadline? No. While an operator may not complete the Plan by 1 July, the village needs to be actively working on it "well before".
7) Do we need to provide residents with a paper copy of the Asset Mangement Plan and related reports? The Secretary's guidelines state that operators must "make a hard copy or an electronic copy available within 7 days after receiving a request." This indicates that an electronic copy is sufficient to meet the legislation's requirements.