Retirement Villages Regulation 2025
36Revised asset management plans
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36 Revised asset management plans
36 Revised asset management plans
(1) This section applies if, during the currency of an asset management plan, the operator of the retirement village becomes aware the total cost of capital maintenance for all major items of capital, including shared major items of capital, is likely to increase by 25% or more above the cost estimated at the beginning of the plan.
(2) The operator of the retirement village must, as soon as reasonably practicable after becoming aware of the likely increase in capital maintenance costs—
(a) revise the estimates of the capital maintenance costs in the plan, and
(b) notify each resident of the retirement village that a copy of the revised asset management plan may be inspected at all reasonable times at the village or at a place of business in New South Wales nominated by the operator in the notice, and
(c) attach to the revised plan a notice that contains the following—
(i) a list of the major items of capital and shared major items of capital for which the estimate of capital maintenance costs has increased,
(ii) the original and revised estimates of the capital maintenance costs for each item,
(iii) the reasons for the change in the estimates.
(3) For the Act, section 20(1)(k), a revised asset management plan is prescribed.
(4) For this section, an increase in the cost of capital maintenance must be calculated net of increases in the Consumer Price Index published in each relevant year of the asset management plan.
Example—
If the Consumer Price Index has risen by 2.5% each year for the first 5 years of the asset management plan, the cost of maintenance could rise by 36.5% (24% + 12.5%) before the plan must be revised under this section.
(5) This section applies to the revised asset management plan in the same way as it applies to the asset management plan as originally prepared except that the total cost of capital maintenance for all major items of capital is taken to be estimated as at the date on which the plan was revised.