Regulatory frameworks are changing the way organisations approach asset management. Read on to learn what’s happening in Australia and New Zealand.
Victoria’s Department of Treasury and Finance established the Asset Management Accountability Framework (AMAF) in 2016 to replace the previous “Sustaining Our Assets” policy statement. This change is anticipated to inspire similar initiatives in other Australian states. The purpose of Victoria’s AMAF is to ensure that assets are optimised, and that value for everyday Victorians from these assets is maximised.
Built around key success criteria, the framework outlines a standardised level of service and quality for public assets. It includes guidelines for asset acquisition, holding, usage and disposal processes, and helps to ensure that associated costs and risks are managed efficiently and effectively.
New South Wales
New South Wales has responded to Victoria’s AMAF by developing its own Asset Management Policy, which is being created with the purpose of driving “better asset management through strengthening accountability, performance and capability across the public sector”.
Replacing NSW’s existing Total Asset Management policy, the new policy will be driven by the consideration of asset lifecycle factors including cost, performance, risk and economic modelling.
A similar model is already operational in New Zealand, where publicly funded organisations operate under an Investor Confidence Rating (ICR); a Treasury-led, three-yearly assessment of government-funded services.
The purpose of the ICR is to rate the performance of each agency in key aspects of their investment management capability and performance.
Several of New Zealand’s District Health Boards, the country’s government-funded health and disability service providers, have come under fire following rejections of their annual plans (and accompanying deficits) by the country’s Health Minister. This has resulted in the resignation and terminations of board members around the country, and the appointment of commissioners to iron out the funding and governance issues.