Major Changes Planned for Asset Management Plans
The NSW Government is planning significant changes to the mandatory Asset Management Plan as part of the upcoming Retirement Villages Regulation 2025. The current regulation is set to expire on 1 September 2025, providing an opportunity to modernise and streamline the existing laws based on stakeholder feedback.
Fair Trading Encourages Stakeholder Input
Fair Trading is inviting stakeholders to have their say on the proposed changes. According to the department, the updates are designed to enhance transparency for residents while reducing unnecessary administrative burdens for operators.
In November last year, Fair Trading Commissioner Natasha Mann (pictured above) spoke at the NSW Property Council’s annual retirement forum, where she confirmed the changes to the Asset Management Plan.
“We’ve heard that the current requirements have led to substantial financial costs and administrative burdens for operators, which in some cases are passed on to residents. Additionally, resident advocates have expressed concerns that the information provided under existing rules is overly complex and difficult to understand, which is not the intended outcome,” she stated.
“As part of this regulatory review, we need to find ways to improve the system.”
Key Changes in the Proposed Regulation
The Retirement Villages Regulation 2025 introduces significant revisions to asset management plan requirements, including:
- Reducing the amount of information operators must record in the retirement villages asset register.
- Replacing the current 3-year capital maintenance report with a 1-year report, integrated into the annual budget process.
- Shifting from recording the “effective life” of capital items to documenting their “remaining effective life” for better accuracy.
Additionally, the proposed Regulation seeks to clarify existing laws, ensuring that critical information is presented in a clear and accessible format.
Consultation and How to Have Your Say
The details of these proposed changes are outlined in the Regulatory Impact Statement – Proposed Retirement Villages Regulation 2025 and the Retirement Villages Regulation 2025 public consultation draft.
Operators and residents are encouraged to provide feedback through the NSW Government’s dedicated website by 12 March 2025.
As part of the consultation process, representatives from the NSW Office of Fair Trading will join the RVRA at the DCM Institute’s first Lunch’N’Learn virtual event. This session is exclusively available to participants in the DCM Institute’s professional development program.
