Chapter 3 Proposed fit-out of new leased premises for the Australian
Taxation Office at the site known as 55 Elizabeth Street, Brisbane, Queensland
The Australian Taxation Office (ATO) currently leases office space across
two building buildings in the Brisbane CBD. The proposed project aims to
consolidate these two sites into a single building.
The proposal will also provide the ATO with greater business operational
efficiencies and significant improvement in the standard of accommodation for
its staff. The building will also meet mandatory Commonwealth policies
including a minimum 4.5 star NABERS rating as well as allowing the ATO to
proactively manage space allocation to meet guidelines prescribed in the
recently endorsed Commonwealth Property Management Framework.
The lease over one of the two existing buildings will expire in June
2013, with the other site set to expire early in 2014. It is proposed that the
new office accommodation will be in place to meet the expiring lease in 2013.
The estimated cost of the project is $33.1 million.
The proposal was referred to the Committee on 2 June 2011.
Conduct of the inquiry
The Committee received one submission and one confidential supplementary
submission detailing the project costs. A list of submissions can be found at
The Committee undertook a site inspection, public hearing and an
in-camera hearing on the project costs on 8 August 2011 in Brisbane.
The transcript of the public hearing as well as the submissions to the
inquiry are available on the Committee’s website.
Plans for the proposed works are detailed in Submission 1: Australian Taxation
Need for works
The ATO is currently located in three leased premises in the Brisbane
CBD. The proposal is to lease and fit out a building that offers co-location of
staff from Terrica Place and Emirates House into a single site. Co-location
will give the ATO the opportunity to implement more collaborative work
practices, uniformity of workspace and administrative efficiencies.
The leases on Terrica Place and Emirates House are due to expire on 28 February
2014 and 30 June 2013, respectively.
The existing leases are below the expected NABERS rating of 4.5 stars,
and do not meet the Commonwealth Property Management Guidelines density target
of 16m2 per occupied workpoint.
The Committee finds that there is a need for the proposed works.
Scope of works
The proposal is to fit-out 18,500 square metres of office space over
approximately 14 floors. The fit-out would include:
- integration of
services into the base building works, including electrical, mechanical,
communications, security, fire and hydraulic services;
- supplementary air-conditioning in those
rooms with higher than normal cooling and ventilation requirements;
- lighting control
system to reduce energy consumption;
- data cabling
throughout the tenant areas;
- door hardware and
electronic access control at the main entrances, other entrances, exits,
vehicle access points and internal areas with higher than normal security
- supplementation of
the base building fire services where required;
designed office accommodation including construction of reception areas, a
security alarm system, an electronic control system, general office fit out and
open plan work areas;
- standardised office
sizes of 32m2 and 16 m2;
- generic workstations;
- breakout spaces,
quiet rooms and casual meeting space;
- computer rooms built
- storage facilities;
- conference and
- first aid rooms,
amenities areas, kitchens; and
- showers and lockers.
The building design and fit out will enable the ATO considerable
flexibility to meet its ever-changing accommodation requirements. This will be
- work points that can
easily and quickly be reconfigured without disturbing productivity;
- maximising the use of
open plan areas;
- ensuring the enclosed
areas are capable of being altered easily to allow for future change, e.g. the
utilisation of modular meeting room design so that two small meeting rooms will
also satisfy the requirements of one large meeting room with minimal additional
- building services
that are located to allow for repositioning of walls, work point layouts and
accommodation changes in technology; and
- a robust security
system that protects ATO information, people, other assets and operations.
Cost of works
The total estimated out-turn cost for this project is $33.1 million
(excluding GST). The Committee received a confidential supplementary submission
detailing the project costs and held an in-camera hearing with the ATO on those
The Committee is satisfied that the costings for the project provided to
it are adequate.
Overall, the Committee is satisfied that this project has merit in terms
of need, scope and cost.
Having examined the purpose, need, use, revenue and public value of the
work, the Committee considers that it is expedient that the proposed works
The Committee recommends that the House of Representatives
resolve, pursuant to Section 18 (7) of the Public Works Committee Act 1969,
that it is expedient to carry out the following proposed work: Proposed
fit-out of new leased premises for the Australian Taxation Office at the site
known as 55 Elizabeth Street, Brisbane, Queensland.