An initiative to optimise the management, performance and use of the State’s assets
A consistent and improved approach to asset planning and delivery is required across Government. This approach will need to be underpinned by the consideration of asset life cycle costs, performance, risk and economic modelling to support the strategic priorities of the NSW Government. Working in collaboration with Government agencies, Infrastructure NSW is leading asset management reform across the state to optimise the management, performance and use of the State’s assets, which was highlighted as a strategic objective in the State Infrastructure Strategy 2018-2038.
Asset Management Policy
The Asset Management Policy for the NSW Public Sector (TPP 19-07) has been published as a Treasury Policy and Guidance Paper.
The objective of the new Asset Management Policy is to achieve a consistent and improved approach to asset planning and delivery across Government, based on current industry asset management standards and approaches. This is critical given the significant increase to the State’s asset portfolio, which in addition to the age profile of existing infrastructure, population growth, climate change and increased prevalence of extreme weather events, will place considerable pressure on the operations and maintenance of assets.
Asset Management Breakfast
Infrastructure NSW and the Asset Management Council held a breakfast event on 31 January 2019 for people across the NSW Government to better understand the development of the Asset Management Policy. A short video from the day is below.
The Asset Management Policy for the NSW Public Sector (AM Policy) was released and published in October 2019. There is a 12-month implementation phase between the release date and effective date of the policy. The effective date of the policy is 02 November 2020; however, agencies may wish to apply for ‘Transitional Arrangements’, which provides additional time (up to June 2024) to meet the core requirements of the AM Policy.
Transitional Arrangements
For Existing Agencies – Requests from agencies’ Accountable Authority can be directed to NSW Treasury, care of the Director Capital Strategy – NSW Treasury; and, copying in Infrastructure NSW (Executive Director Asset Management) and the Office of the Government Chief Information and Digital Officer (Government Chief Information and Digital Officer) - (capitalbudget@treasury.nsw.gov.au, assetmanagementcop@infrastructure.nsw.gov.au, and digital.nsw@customerservice.nsw.gov.au)
Agencies seeking transitional arrangements are to prepare an implementation plan (‘road map’) demonstrating the timeframe and annual milestones for how the agency will achieve compliance with the policy. These implementation plans are not required to be submitted with letters requesting Transitional Arrangements; however, agencies should outline in their requests, the work undertaken to date to develop their implementation plans.
Note, implementation plans need to be submitted as part of the Attestation process, which aligns with the budget timeframes, which will be announced in due course.
New Agencies - i.e. those agencies that were stood up following the publication of the policy (31 October 2019), have a transition period of 24 months from the date of their inclusion in the Government Sector Finance Act 2018 to meet the requirements of the AM Policy. New Agencies are not required in 2020/21 budget cycle to lodge a formal request for Transitional Arrangements.
Strategic Asset Management Plans (SAMPs) and Asset Management Plans (AMPs)
Agencies granted Transitional Arrangements are not absolved from adhering to the requirements of the Budget Process. As part of Outcomes Budgeting, the Expenditure Review Committee (ERC) will consider the impact of the Agencies’ individual SAMP and AMPs on their overall performance. This means Agencies will need to provide evidence of the connection between their SAMPs and AMPs to their outcomes and programs, as set out in their cluster Outcomes Business Plans. For further advice on Outcomes Budgeting, please refer to the NSW Treasury website for more information.
Asset Management Assurance Framework
In accordance with the recommendations of the State Infrastructure Strategy 2018-2038, Infrastructure NSW is developing an Asset Management Assurance Framework that will objectively assess the maturity of an agency’s asset management framework and its performance.
Building asset management capability and support for agencies
Building and sustaining a level of asset management capability is necessary to allow agencies to deliver the following improvements to state outcomes:
Support for agencies
The following programs are available to support agencies build their asset management capability:
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NSW Asset Management Community of Practice |
Asset Management Maturity Assessment |
Development of Guidelines and Support Material |
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A quarterly asset management forum for NSW agencies to improve their capability, knowledge and practice |
Access to the tool used by industry and developed by the Asset Management Council of Australia to quantify, baseline and benchmark agency maturity across NSW Government |
Guidance material, case studies and access to industry experts available to NSW agencies in partnership with the Asset Management Council of Australia |
This section contains a list of useful links to organisations and/or websites that can provide more information on asset management.
READ MOREInfrastructure NSW has partnered with the Asset Management Council of Australia to establish a NSW Asset Management Community of Practice (AMCoP). The objective the AMCoP is to develop a shared understanding of good asset management and raise the maturity level across government, while supporting the implementation of the new asset management assurance framework.
The AMCoP has members across NSW Government and their commitment for this initiative is critical to lifting asset management capability across the State. Events are held quarterly and include guest speakers from industry and government showcasing leading practice.
If you are interested in joining the Asset Management Community of Practice or would like further information, please contact assetmanagementcop@infrastructure.nsw.gov.au
