Property Management Plan

Non-corporate Commonwealth entities (NCEs) must have a Property Management Plan (PMP) that should be:

  • Provided to Finance or its nominee to inform development of the Commonwealth Leasing Strategy (Leasing Strategy).
  • Updated as necessary to reflect changing business requirements and Government policies. This may include:
    • machinery of government changes
    • updating of Corporate Plans that may have property implications, leases, organisational structure or functions
    • changes or amendments to a lease
    • new office fit-outs
    • significant organisational structure or function changes; or
    • New Policy Proposal.
  • It also includes property-related strategies and actions to respond to new or modified Government policies, such as the Net Zero in Government Strategy. 

A PMP must:

  • outline the role of property in meeting the objectives of the NCE
  • define performance indicators and assess performance across the property portfolio that the NCE manages
  • ensure the quality, quantity, functionality, cost and availability of property are appropriate
  • identify future property needs
  • assess options for the acquisition, sharing, renovation and disposal of property, and associated change management.

Under the Property Services Coordinated Procurement (PSCP) Arrangements, it is the responsibility of NCEs to ensure PMPs are developed and up to date. Entities retain ultimate responsibility for ensuring compliance with all relevant policies, including the Commonwealth Property Management Framework.

The PMP template should be tailored according to the size and complexity of the relevant property portfolio.

Commonwealth Leasing Strategy

The Leasing Strategy is maintained by Finance in consultation with NCEs. It is primarily focused on office accommodation and shopfronts and seeks to maximise value for money through consideration of Commonwealth leasing needs on a strategic whole of government basis.

A NCE should consult with its Property Service Provider and must ensure that its property leasing decisions are consistent with the Leasing Strategy, established under the PSCP Arrangements.

Entities should contact Property Framework if there are any changes to their business requirements that may result in a lease deviation.

Capital Management Plan

The Capital Management Plan (CMP) is a strategic planning document that summarises an entity’s actual and planned property and other capital expenditure (such as capital works) across the budget and forward years and explains how the expenditure will be funded. CMPs must be consistent with the capital expenditure estimates reported in the Central Budget Management System.

Under the Capital Budgeting Policy for Australian Government Entities, entities must have a CMP for capital expenditure on properties owned and leased within Australia. The Department of Defence is exempt from this requirement as it is subject to separate capital management reporting processes.

The Capital Budgeting Policy outlines the rules and requirements for the management and reporting of capital/asset funding and expenditure. It is available through the Knowledge Management section of the Central Budget Management System or from an entity’s Chief Financial Officer or relevant financial area. 

RMG-124 Capital budgeting by Commonwealth entities in the general government sector provides additional guidance and is available under Resource Management Guides.

Occupational Density Target

The Government’s occupational density target is 14m² of usable office area per occupied work-point. This target applies to both leased and owned Commonwealth office accommodation (including shopfronts).

NCEs must consider the occupational density target when undertaking planning and throughout the property management lifecycle.

Occupational density is reported as part of the annual Australian Government Office Occupancy Report. The Report is developed using information collected in the annual office data update in the Australian Government Property Register.

All new leases are expected to meet the 14m2 occupational density target

Workplace Design

A NCE is responsible for its own accommodation arrangements and must incorporate efficient and effective workplace design into its accommodation planning wherever feasible. 

Emissions Reduction

In alignment with the Australian Government’s commitment to net zero emissions from government operations by 2030, a NCE is responsible for understanding the impacts of, and reducing, its property-related emissions, as required by the Net Zero in Government Operations Strategy

Corporate Commonwealth entities are encouraged to meet the obligations of the Net Zero in Government Operations Strategy.

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