Appendix 4: Commonwealth property disposal policy

Appendix 4: Commonwealth property disposal policy

General policy

Commonwealth Property having no alternative efficient use is to be sold on the open market at full market value.

Exceptions to this general policy are outlined below.

A.     Priority sales

Priority sales are those made direct to a purchaser without the property having first been offered for sale on the open market. A priority sale may be arranged in the following circumstances:

  1. where there is a former owner entitlement as defined under the Lands Acquisition Act—the owner is to be given the right of first refusal at full market value;
  2. where sale to State or local Governments would facilitate other Commonwealth or co–operative policy initiatives, 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
  3. where Commonwealth funded organisations seek special consideration in the disposal of surplus property and have the support of the relevant portfolio Minister—sale to be negotiated on the basis of intended use.

**  The following categories of priority sales may be approved by the relevant delegate of the Minister for Finance and Administration:

  • Disposal to State or local Government for road and/or railway casements, road widening, or other minor access purposes;
  • Disposal under a legal obligation, eg where there is a former owner entitlement as defined in the Lands Acquisition Act.

All other priority sakes including those in the above categories which have a potential or social sensitivity, heritage or environmental significance, or which are likely to arouse State or local Government or community protest, require the personal approval of the Minister for Finance and Administration.

B.    Concessional sales

Concessional sales are those priority sales concluded at a purchase price below the market value. Such sales require the approval of the Minister for Finance and Administration.

In the case of Commonwealth statutory authorities, the agreement of the relevant portfolio Minister is also required to any concessional sale.

Notes:

  1. Disposals policy agreed by Government Decision 7174 of 17 February 1986.
  2. Priority sales exceptions marked with an asterisk were agreed by Minister Bolkus in June 1990—previously all priority sales required the Minister’s personal approval.
  3. Amendments to reflect changes in administrative arrangements in October 1997 agreed by the Minister for Finance and Administration, the Honourable John Fahey MP, in November 1997

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