Capital Maintenance Plans for Victorian Retirement Villages
Ten year capital maintenance plans for Victorian retirement villages under section 38BN of the Retirement Villages Act 1986, from field audit to annual refresh.
From Field Audit to a Plan Residents Can Read
The Act asks for present condition, timing, cost and expected life for each item, and the Regulations make the information the operator relied on part of the plan itself. Condition and evidence come from the field. Timing, cost and funding come from the analysis. That is why we deliver this with Kairos Strategies, in three steps.
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Written for Residents
The plan is incorporated into the minutes of the annual meeting and stays on the record. Ours is built so that every figure in it traces to the audit, the operator's own budget or a stated setting.
Every Statutory Element Shown
Each of the six content elements in section 38BN(2) is addressed and cross referenced in the plan, with coverage stated, so a reader can see where the Act is met.
Written for Residents
The plan is short and in plain language. The item level detail lives in the schedule, where the operator's own team can use it.
Maintenance and Replacement Kept Apart
Capital maintenance may be funded from maintenance charges or the capital maintenance fund. Capital replacement is the operator's cost. The plan shows them separately, so the funding position is clear before the meeting, not after it.
Independent of the Works
We plan the work and never tender for it. Neither SAS-AM nor Kairos Strategies has a stake in how much work the plan identifies.
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Trent Taylor, Managing Director, Kairos Strategies
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FAQs
Learn more about what our clients ask us.
Kairos Strategies audits the village in the field, SAS-AM turns that audit into the statutory plan and an item level asset schedule, and we refresh both before each annual meeting. Our first plans, for three regional Victorian villages, covered more than 31,000 items of capital. Read our guide to section 38BN for the detail.
No. Residential aged care is not a retirement village and sits outside the plan, even on a campus that holds both. Where the two share infrastructure such as stormwater or roads, the shared items are apportioned and the basis is stated in the plan.
No. Neither the Victorian Act nor the Regulations prescribe a qualification for whoever prepares the plan. The Regulations do make the information relied on part of the plan, so the method and the evidence behind it have to stand up when residents read them.
Capital maintenance may be funded from maintenance charges or the capital maintenance fund, while capital replacement is the operator's cost. The Act also bars the charges and the fund from paying for new buildings, depreciation or the renovation of vacant premises. A good plan shows the two streams separately so residents and the operator can see who funds what.
No fine attaches to section 38BN itself. The exposure is financial and public. The operator must bear the cost of capital replacement, must make good any deficit, and must table the plan at the annual meeting of residents, where it is incorporated into the minutes. This is general information, not legal advice.
The requirement has applied since 1 May 2026. It applies to the operator of every registered retirement village, whatever year residents signed their contracts, unless the exemption in section 38BO applies. That exemption needs an owners corporation that holds both a maintenance plan and a maintenance fund under the Owners Corporations Act 2006.
A capital maintenance plan is the ten year plan that section 38BN of the Retirement Villages Act 1986 (Vic) requires a retirement village operator to prepare. It sets out the items of capital the operator is responsible for that are expected to need capital maintenance or capital replacement in the next ten years, their present condition, when each will need repair or replacement, the estimated cost, and the expected life afterwards. The information the operator relied on to prepare the plan forms part of the plan itself.
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