Defence Real Property Disposal Legislative and Policy Framework
Defence disposes of surplus real property that is no longer required for capability purposes in accordance with the Commonwealth Property Disposals Policy. The general Policy requires that Commonwealth property, having no alternative efficient use, is to be sold on the open market at full market value. However there are exceptions, such as ‘Priority’ or ‘Concessional’ sales (direct sales not on the open market):
- where it is considered that a sale to state, territory or local governments would optimise housing and/or community outcomes;
- where there is a former owner entitlement as defined under the LAA – the owner is to be given the right of first refusal at full market value;
- where sale to state, territory or local governments would facilitate other Commonwealth or co-operative policy initiatives, that could not otherwise be achieved by way of an open market sale, or would protect other Commonwealth property interests:- sale to be negotiated on the basis of the highest price possible given the intended end-use; and
- where Commonwealth funded organisations seek special consideration in the disposal of surplus property to facilitate Commonwealth Policy objectives and have the support of the relevant portfolio Minister and the Minister for Finance and Deregulation, the sale is to be negotiated on the basis of intended use.
Where a surplus property is considered by the Department of Sustainability, Environment, Water, Population and Communities as suitable for facilitating:
- an increase in the supply of housing without adversely affecting surrounding property prices;
- improved community amenity;
- the creation of new jobs;
The property is disposed of under a strategy that has been jointly approved by the Minister for Sustainability, Environment, Water, Population and Communities, the Minister for Finance and Deregulation, and the Minister for Defence.
The Minister for Finance and Deregulation approves real property disposals under the LAA. There is no delegate in Defence that can authorise the disposal of real property under the LAA.
Real property disposals must comply with the environmental and heritage guidelines set by the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act). Defence aims to comply with state, territory and local government legislation and requirements to the extent that these do not conflict with Commonwealth legislative obligations.
Defence develops a four year Defence Property Disposal Program. The Program is submitted to the Defence Estate Committee for endorsement prior to its inclusion in the Defence Budget.
Defence engages external contractors including lawyers, environmental experts (heritage, flora, fauna), surveyors, property valuers, contamination remediation experts, marketing agents and other contractors, to prepare each property for disposal. External contractors are engaged in accordance with the Commonwealth Procurement Guidelines.
An Inter-departmental Committee (IDC) on Defence Estate Matters, comprising representatives from the Departments of Defence, Finance and Deregulation (chair), Treasury, Prime Minister and Cabinet, and Sustainability, Environment, Water, Population and Communities, monitors Defence progress on the (Budget Year) Defence Property Disposals Program.
The Department of Finance and Deregulation undertakes Commonwealth Land Audits on behalf of the Australian Government. Each agency, including Defence, is required to justify its property holdings and identify surplus real property. Where surplus property is considered suitable for housing and community outcomes, details are published in the Department of Finance and Deregulation’s Register of Surplus Commonwealth Land Potentially Suitable for Housing and Community Outcomes.
Roles and Responsibilities
The Assistant Secretary Property Management (ASPM) is responsible for the management of Defence’s real estate transactions including: property acquisition, disposal, and leasing and is responsible for managing and delivering the Defence Property Disposals Program. As the Senior Executive Service position in Defence with specific responsibilities for the disposal of real property, ASPS has the authority to execute documents relating to the disposal of interests in land on behalf of the Commonwealth, including title transfer documents for lodgement with the State Land Title Offices (does not include approval under the LAA). The disposal of all Defence real property is to be conducted by, or supervised by, ASPM.
The Director Property Disposals undertakes day-to-day activities associated with Defence real property disposal projects, including the procurement of external contractors. Any queries about property disposal matters should be directed to the Director Property Disposals in the first instance. |
