The NSW Government is committed to using the Government’s property portfolio to its fullest advantage. To achieve this, the Government has adopted a new property framework to ensure that NSW Government properties can be redirected to where they can be put to best use. The Government Property Framework (GPF) will ensure that:

A. Unused and underutilised NSW Government properties are redirected to where they can be put to better use

 Land is an essential component to deliver infrastructure and services to communities. However, not all land held by the NSW Government is held by the agency that needs it.

The GPF requires agencies to actively review their portfolios and advise Property and Development NSW (PDNSW) of properties that are unused or underutilised. This allows other agencies to test whether those properties could be used to deliver on other Government objectives.

The Government Property Advisory Committee (GPAC), a Deputy Secretary-level body, is the principal advisory body to the NSW Government on property matters. It is responsible for considering:

• all property proposals involving land that is suitable for the delivery of housing including whether they are to be transferred to Homes NSW or Landcom, or sold on the open market;

• all other property proposals that are captured by the GPF; and

• recommendations to the NSW Government and the Minister for Lands and Property on opportunities to better use land across all portfolios, including for the delivery of social and affordable housing.

B. NSW Government properties are to be assessed to determine whether they are suitable for use in delivering housing

The GPF requires surplus and underutilised properties to be assessed via the Government Property Audit to determine whether they are suitable for housing, and where they are not required for other infrastructure or service delivery objectives, to be used to deliver housing by Homes NSW, Landcom or the private sector.  

In this way, surplus Government land that is capable of delivering housing is used for that purpose, thereby contributing to the supply of housing in NSW.

C. NSW Government properties that are assessed as suitable for housing under the GPF are to be offered to Homes NSW and then Landcom, or sold on the open market, thereby increasing the supply of land for housing

The GPF ensures that the NSW Government’s key housing delivery agencies, Homes NSW and Landcom, have the first opportunity to acquire properties that are suitable for delivery of housing.

Homes NSW will have first call to acquire these properties. In the event Homes NSW chooses not to purchase the property, Landcom will have second call to acquire it.

If both Homes NSW and Landcom decline to purchase the property, it will be sold on the open market for housing. PDNSW or the landowning agency may undertake the sale of the property subject to the terms of the GPF.

D. Properties are transferred between NSW Government agencies for their current market value as determined by Value NSW

The GPF ensures landowning agencies are fairly compensated when they transfer surplus properties to another NSW Government agency by requiring the receiving agency to pay them the property’s current market value in cash (unless otherwise agreed by Cabinet, the Expenditure Review Committee of Cabinet or the Treasurer).

A property’s current market value will be determined by the State’s independent valuation expert, Value NSW.

Agencies will have the opportunity to provide Value NSW with information to support its determination, and may seek a review of Value NSW’s determination if they feel there are factual errors affecting it.

E. Property acquisition proposals are assessed to ensure the Government does not purchase new properties if the land requirements can be met from its existing portfolio

Land can be an expensive part of delivering new infrastructure and services to communities, so it makes sense to test whether land within the Government’s existing portfolio can be used for that purpose before agencies buy more land.

The GPF requires agencies to circulate details of proposed property acquisitions to test whether there is an existing property suitable for that purpose within the Government’s existing landholdings, and for the GPAC to make recommendations on property purchases and the use to which they are put.

F. Certain surplus NSW Government properties are offered to Local Councils, community groups and Local Aboriginal Land Councils under the Community Use Policy (CUP)

Local councils, community groups and Local Aboriginal Land Councils play a vital role in our communities.

The CUP supports this role by allowing certain types of surplus government property to be offered to these organisations.

The NSW Government has adopted new value thresholds to reflect changes in property values that now apply to the CUP. The threshold is now $2 million for properties in the Lower Hunter and Greater Newcastle City, Central Coast City, Illawarra-Shoalhaven City, Western Parkland City, Central River City and Eastern Harbour City, and $1 million for properties located elsewhere in NSW.

Landowning agencies will still determine whether eligible properties are offered at full market value, or at a discounted market value with a 15-year community use restriction on the property’s title.

All General Government Sector Agencies, and Public Non-Financial Corporations and their Ministers must comply with the GPF’s processes and requirements as set out in the Attachment. State Owned Corporations are not mandated to follow the GPF but are encouraged to do so.

Chris Minns MP

Premier