- Proposed Fit-out of New Leased Premises at 26 Narellan Street, Canberra, Australian Capital Territory
Australian Electoral Commission
5.1The Australian Electoral Commission (AEC) seeks approval from the Committee to proceed with the proposed fit-out of new leased premises at 26 Narellan Street, Canberra, Australian Capital Territory.
5.2The project will consolidate the AEC National Office tenancies at 4, 10 and 12 Mort Street into a purpose-built workspace within the Canberra CBD. At the public hearing, the AEC provided some context about their role and the importance of their Canberra office location in delivering their work:
Without wanting to oversimplify our role, it's helpful to think of the AEC as undertaking three categories of work. The first category is the operational delivery of elections, including federal elections, referendums, by-elections, elections on behalf of the Torres Strait Regional Authority and industrial election ballots, or union elections. These elections are enabled by the maintenance of an electoral roll that currently contains close to 18 million people. Secondly, there is our regulatory work, including the delivery of the funding and disclosure program, the authorisation scheme, the register of political parties and, of course, the enabling services that support these functions… The Canberra office is both the largest office and also the central coordinating point for all of the AEC's work. Delivery of these roles is a large, ongoing operation, and the current external environment generates new logistical and delivery challenges.
5.3The estimated cost of delivery of the fit-out is $35.85 million (excluding GST).
5.4The project was referred to the Committee on 12 December 2024.
Conduct of the inquiry
5.5Following referral, the inquiry was published on the Committee’s website.
5.6The Committee received one submission and two confidential submissions. A list of submissions is available at Appendix A.
5.7On 19 March 2025, the Committee received a private briefing, then conducted a public and in-camera hearing at Australian Parliament House, Canberra. A transcript of the public hearing is available on the Committee’s website.
Need for the works
5.8In August 2024, the AEC moved most of its Canberra-based teams into connected buildings on Mort Street to bring them close to each other and to the AEC Command Centre. The new CBD site will further consolidate these teams into a single, purpose-built office space, reducing the total net-lettable-area from 15,398sqm to 13,863sqm.
5.9The AEC considers that a centralised National Office is required in order to align with the Electoral Act 1918. Having key decision-makers, support teams, and the Command Centre in one location improves communication and collaboration.
5.10The AEC's staffing levels expand and contract significantly while supporting democratic events. The maximum number of work points across the Mort Street offices is 1,111. In the FY2021 Budget process, the AEC was allocated significant funding to undertake an IT modernisation program (Indigo Program). The AEC’s staffing profile as part of the Indigo program is anticipated to increase in the near term by approximately 100. An increase in work points to staff member ratio at the proposed CBD site will ensure the Indigo program and surge staff during electoral event periods are provided for.
5.11The fit-out will deliver an agile working model, meaning that the 1,046 work points to be included will accommodate a staffing headcount of up to 1,308 (8:10 ratio) and 1,494 (7:10 ratio) as required.
5.12In addition, the current office arrangement presents limitations that impact the functionality of the AEC, which include:
- Ageing and insufficient Net Zero solutions
- Inflexible floor plate designs that do not provide for expected future fit-out requirements including:
- two central cores and complex mechanical/services
- limited security uplift solutions
- HVAC and supplementary air limitations; and
- compromised car parking (services interference and access issues).
- At the public hearing, the Committee heard that the proposed works will provide flexibility around possible future changes to ways of working, as well as surge capacity:
…the way in which we operate changes so much over different parts of the cycle. We have a relatively small number of people who have access to formal flexible working arrangements, but the activities that we undertake will see people undertaking national office work outside of the national office, travelling to other parts of our footprint, at various points in time. For that reason, the way in which we have considered the fit-out and thought about the ways to use it, we judge that at all points in the cycle, because of the range of different things our people will be doing across the functions and at different stages of the cycle, they will be able to be accommodated in the new fit-out better, in many respects, then they're accommodated in the current fit-out.
Options considered
5.14The AEC’s submission provided the following information as to why theNarellan site was selected:
- The Narellan Street site has a 15-year lease with two 5-year extension options, providing flexibility. This long lease term gives the AEC stability while allowing for adjustments to operational needs. The lease structure helps manage workforce surges during elections and supports modern workplace needs like activity-based working and technological proficiency.
- The Narellan Street site is well-located in Canberra's Central Business District, close to shops, restaurants, cycle paths, public transport, and parking. This makes it easy for employees and visitors to access the office, no matter how they travel.
- At the public hearing, the Committee heard about the lease options at their current site, which provide the AEC with flexibility around the completion timing of the proposed works:
Our lease arrangements at our current site offer us quite a lot of flexibility in terms of the timing of our move. In our lease at the moment, the term ends on 24 March 2030, but it has an early surrender window, and that early surrender window needs to be exercised by 30 June 2027 for between September 2027 and March 2028. That's when we would be surrendering the building. That gives us the ability to understand how the fit-out project is progressing and make a decision at that point as to whether we wish to surrender the building early or to hold the lease of 10 and 12 Mort Street.
Scope of the works
5.16The works consist of a fit-out to levels 2 to 7 at 26 Narellan Street. The remaining levels (8 to 10) will be occupied by other tenant(s) with the building allowing for a security desk and speed stiles on Level 2 restricting unauthorised access. The proposed fit-out will be based on a usable floor plate of 13,863sqm made up mostly of open plan workstation settings, bookable offices, breakout spaces and meeting rooms.
5.17The office will have an open plan layout for all staff and will include:
- workstations: rectangular desks (1,600 mm long) with sit-stand adjustability
- meeting and quiet spaces: plenty of meeting rooms, quiet rooms, and casual breakout areas
- breakout areas: on-floor hubs and kitchens for relaxing and casual meetings
- meeting rooms: various sizes with collaboration zones, all with separate air-conditioning
- furniture: includes monitor arms, chairs, tables, stools, and other seating
- lockers: for storing laptops and personal items in an unassigned seating environment
- storage: for temporary work accessories and event resources
- wellness area: includes a carers room, first aid room, and reflection room
- flexible room sizes: consistent sizes to allow for repurposing and minimise future costs
- specialist areas: command centre, multipurpose rooms, media room, and IT build room
- secure zones: dedicated secure meeting and work areas to maximise efficiency
- executive offices: bookable offices for executive level 2 and visiting senior executive staff
- senior executive area: offices for senior executives with meeting table space
- executive area: for the Chairperson, Electoral Commissioner, Deputy Electoral Commissioner, and First Assistant Commissioners and their support staff
- communications rooms: two air-conditioned rooms on each floor for communication equipment
- parking and storage: secure basement parking and storage.
- At the public hearing, the AEC also provided information about the improved building security:
Like all entities in the Commonwealth and beyond delivering services where you have an interface with the public, the security environment has changed. That change has been felt by the AEC in its divisional offices, in polling places and in state and national office. The fit-out for national office takes into account improved security arrangements for the AEC and is one of the ways in which it is therefore beneficial to our staff.
Stakeholder consultation
5.19The AEC will involve staff in the design of the fit-out in the following ways:
- Internal Project Governance Framework: A working group with broad staff representation will keep everyone informed and address issues. The Executive Leadership Team (ELT) will oversee the project.
- Communication Strategy: The AEC will use a detailed communication plan, intranet site, project mailbox, working group, surveys, and regular updates to keep staff informed.
- Change Management: The AEC will work with its Enterprise Change Management Office (ECMO) and an external provider to ensure the fit-out and relocation are done transparently and with staff input.
- At the public hearing, the Committee heard further about the AEC’s engagement with staff, as well as assurance that the proposed works will cause minimal disruption to staff throughout the upcoming election period:
Engaging with staff on this project is one of the more rewarding aspects of it. It's an opportunity to show staff the way in which we are seeking to position them to do their best and be their best in the workplace. We've been fortunate, in some respects, to have been working through this project for a period of time. The engagement stretches back several years as we've worked through the twists and turns of this particular procurement. We've also undertaken fit-outs in several of our state offices, and the way in which we engaged and the benefits that we got in terms of understanding what was going to work well for staff in those projects will equip us for this one… we anticipate, for a short period in May, our staff will be very focused on the delivery of the federal election. We won't be proposing to communicate with them at that time.
5.21Other consultation and engagement activities will include:
- a project-specific intranet site with updates
- a dedicated email address for the fit-out project
- discovery workshops and information sessions
- displaying prototype work areas for staff to see and ask questions
- engaging with cultural and diversity networks
- briefings for internal committees
- engaging with external stakeholders like the CPSU.
- The AEC has developed concept plans based on staff feedback and will continue to seek input on specific items through working groups and surveys.
- To date, from February 2023 to October 2024, the AEC has re-engaged staff and specialist areas through various activities to refine the design and understand business needs. This includes observing behaviours and gathering staff perspectives.
- The AEC will continue consulting with internal and external stakeholders, including staff, executives, specialist areas, and external partners like JLL and Davenport Campbell.
Cost of the works
5.25The cost of the proposed fit-out works is estimated at $35,851,254 (excluding GST), which is $2,586 per square metre (excluding GST) based on the net-lettable-leased area of 13,863 square metres. The per square metre cost is considered to be in the medium range for a Commonwealth office fit-out in Canberra.
5.26Funding of the proposed fit-out cost will be sourced through the landlord lease incentive and a landlord ‘warm shell’ credit. Any residual incentive will be applied as rent abatement.
Public value
5.27The proposed office fit-out aims to improve the Australian Electoral Commission's efficiency and cost-effectiveness while keeping its workforce in Canberra. Key processes involved include:
- Adopting an activity-based workplace design: This flexible office setup allows the AEC to easily adjust the number of staff based on current needs, such as during democratic events, with minimal costs
- Enhancing sustainability: The new office will feature modern, energy-efficient designs to lower energy costs
- Attracting staff back to the office: The modern fit-out is expected to encourage more staff to work from the office, benefiting local small businesses
- Creating jobs: The construction and fit-out process will create jobs, including opportunities for local small businesses and Indigenous providers
- Utilising public transport: The project will ensure staff can use existing and planned public transport facilities.
Committee comment
5.28The Committee did not identify any issues or concerns with the proposal, and it is satisfied that the project has merit in terms of need, scope and cost.
5.29The Committee acknowledges that the design of the proposed fit-out will not negatively impact the AEC’s ability to surge during democratic events and also that the design is flexible enough to accommodate possible future evolutions in the way the AEC carries out their work.
5.30The Committee is satisfied that the construction period for the proposed works will not disrupt staff during the 2025 federal election period or other democratic events. The Committee acknowledges the importance of the AEC’s work in ensuring transparent and accountable democratic processes.
5.31The Committee notes that enhanced security measures have been incorporated into the design of the proposed works and welcomes this development, recognising the global challenges faced by Western democracies in recent years.
5.32The Committee encourages the AEC to carefully manage the proposed works moving forward to ensure the best use and value of Commonwealth funding.
5.33Having regard to its role and responsibilities contained in the Public Works Committee Act 1969, the Committee is of the view that this project signifies value for money for the Commonwealth and constitutes a project which is fit-for-purpose, having regard to the established need.
5.34The 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 works: Australian Electoral Commission — Proposed Fit-out of New Leased Premises at 26 Narellan Street, Canberra, Australian Capital Territory.
5.35Proponent entities must notify the Committee of any changes to the project scope, time, cost, function or design. The Committee also requires that a post implementation report be provided within three months of project completion. A report template can be found on the Committee’s website.
Mr Graham Perrett MPChair