WA’s Retirement Villages Amendment Act 2024 is reshaping the expectations around asset planning and transparency. Supporting regulations are expected to start later this year, and then operators will have just three months to implement compliant systems.
At the heart of these reforms is a requirement for current, complete and structured asset data, the foundation for long-term planning, financial transparency and compliance.
What’s at stake under the new WA rules
Under the new legislation, operators will be required to prepare a Capital Works Plan (covering both capital maintenance and capital replacement) for at least five years, to be reviewed annually and shared with residents before each AGM. These plans must be evidence-based, showing what work is required, when it will happen, and how it will be funded.
Operators must also maintain a dedicated Capital Maintenance Fund and demonstrate that the fund is being used appropriately. Both overcollection and underfunding will be subject to review by the State Administrative Tribunal.
Consider the risks. If a capital item fails and no funds are available, the operator will bear the cost. Worse, if data were available but unused, credibility – and trust – could be lost.
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 even non-compliant.
Take, for example, a roof due for replacement. If your data only reflects age – and not actual condition – you might delay works and expose residents to risk, or worse, trigger emergency repairs that drain your maintenance fund and damage your credibility. Under the Act, penalties can be as high as $100,000 for corporations for failing to meet these obligations.
What does 'fit-for-purpose' mean in WA?
To optimise the outcome for residents and operators alike, Capital Works Plans and maintenance funds require accurate asset data that is current, complete and structured.
Current data means having an accurate view of assets' real condition, not just their assumed age. This data is crucial for forecasting lifecycle costs, assessing funding needs, and justifying resident contributions.
Structured data takes it a step further, allowing assets to be organised hierarchically and associated with the spaces they serve. This structure supports better prioritisation of capital works, optimises fund allocation, and improves forecasting and planning.
Consistent data ensures that all capital items are captured. Consistency in applying methodology ensures all capital items are captured, avoiding subjective interpretations and reducing the potential for errors.
Moreover, accurate data with clearly assigned current conditions helps eliminate the subjectivity that could lead residents to question the justification for funding maintenance and capital works in their village. This clarity ensures that both residents and operators can trust the process and its outcomes.
Why you need a dynamic asset management system
A simple spreadsheet won't suffice. You need a dynamic system that tracks asset condition, distinguishes between capital maintenance and replacement, and produces reports that are clear, auditable, and resident-ready.
This is where AssetFuture’s purpose-built platform comes in.
Now is the time to act
The reforms bring higher expectations, but also a clear opportunity.
Operators who invest now in accurate, structured data – supported by scalable tools – will not only meet their compliance obligations but unlock cost savings, avoid disputes, and build resident trust.
As you get ready for the upcoming changes in Western Australia, AssetFuture is here to help. Get in touch today.