The NSW Government has finalised and published the Retirement Villages Regulation 2025 (NSW), bringing in a number of key changes for operators.
At a NSW Property Council forum last November, NSW Fair Trading Commissioner and Deputy Secretary Natasha Mann signalled that the state’s Asset Management Plan (AMP) framework would be simplified. But while the final regulations streamline some requirements, others that were proposed to be removed in draft form have been reinstated.
Annual reporting replaces three-year cycle
The most significant change is that operators must now prepare a yearly capital maintenance report – replacing the three-yearly reporting cycle under the previous regulations.
While the information required has not materially changed, the Government walked back on earlier proposals to reduce the scope of these reports. Draft provisions had removed the need to cover accumulated maintenance costs and whether an item would be replaced or maintained, but the final version reinstates both requirements, in line with the current regulations.
The new rules also confirm that capital maintenance reports only need to cover major items of capital, rather than all items, aligning with the existing framework.
Revised AMPs back in play
The Draft Regulation had suggested removing the obligation to provide a revised AMP where capital maintenance costs increased by 25% or more than originally estimated. That requirement has been reinstated in the final version.
The key difference is that the increase in costs is now calculated net of CPI, which provides operators with greater clarity and removes some of the volatility caused by inflation according to Thomson Geer Partner Nikolas Miljkovic.
“The changes being implemented under the New Regulations are an overall positive step toward better balancing the rights and interests of operators and residents in NSW,” he said.
Transparency for new residents
Operators are already required to keep a detailed list of all available premises within a village. The new regulations go further, specifying that the following details must now be made available for each unit:
- the listed price,
- the size of the premises in square metres, and
- the number of bedrooms.
One area of flexibility for operators has been the removal of certain agenda requirements. Draft provisions had required details of proposed village expansions or potential sales to be included in annual management meeting agendas. The final regulations remove these items, meaning operators will no longer be obliged to notify residents before entering redevelopment or sale discussions.
For Thomson Greer Lawyers' report in full, click here.
