Legislative change is on the way, and it’s raising the bar for retirement village operators across Victoria.
With the Retirement Villages Amendment Bill 2024 now passed, operators face heightened responsibilities to manage and maintain capital assets, with full implementation set for May 2026.
In this new environment, data is your foundation. Without it, even the most well-intentioned maintenance plans can fall short.
Why accuracy matters now more than ever
Under the new rules, operators must develop a 10-year maintenance plan and establish a capital maintenance fund, both directly tied to the condition and lifecycle of capital items like HVAC systems, roofs, and common facilities.
These plans must be supported by accurate and current asset data, ensuring they benefit both residents and operators. Poor asset data integrity increases the risk of operators being held accountable for deficits in the village operating fund.
Accurate data is the foundation of compliance
The quality of these plans depends on the quality of your data. Without a clear understanding of asset age, condition, and lifecycle stage, your plans could be underfunded, unrealistic – or non-compliant.
For example, a poorly maintained register overlooks a deteriorating hot water system. The unit fails unexpectedly, triggering a costly emergency replacement. That cost, which could have been forecast and budgeted, now falls entirely on the operator.
What does ‘fit-for-purpose’ asset data mean?
To meet the new requirements, operators will need asset data that is current, complete and well-structured.
Current data means your asset register reflects real-time asset condition – not just age or assumptions. This is critical for ensuring your 10-year capital maintenance plan reflects actual lifecycle needs.
Structured data means your asset information needs to be hierarchically organised so you can identify assets against the spaces they operate in. This structure allows you to prioritise interventions and budget with confidence. A leaking roof on a central building carries different implications than a minor issue in a storage area. Structured data makes that distinction clear.
Finally, consistent condition ratings are essential. Having a consistent framework for attributing condition to assets is key. Without a standardised methodology, different team members might rate the same asset differently, or the methodology might vary over time or across locations. This undermines lifecycle planning and can erode trust with both residents and regulators.
To mitigate risks, formalising property condition reporting will be a required step. A condition report before residents move in serves as a baseline for reinstatement obligations upon their departure, with no liability for fair wear and tear or upgrades. This reinforces the need for a consistent condition framework, ideally supported by technology to eliminate subjectivity and improve cost forecasting.
Beyond spreadsheets: The need for a dynamic system
You need more than just a spreadsheet to manage your asset data. You need a dynamic system that tracks asset condition, distinguishes between capital maintenance and replacement, and generates reports that are clear, auditable, and ready to share with residents.
This is where AssetFuture’s purpose-built platform comes in.
Start now – before time runs out
With less than a year until the reforms come into effect, now is the time to review your asset data, assess your condition methodology and prepare your systems. This isn’t just about compliance – it’s about reducing risk, protecting margins and building resident trust through transparent, consistent reporting.
As you prepare for the upcoming changes in Victoria, AssetFuture is here to help. Get in touch today.