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:
- 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;
- 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
- 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:
- Disposals
policy agreed by Government Decision 7174 of 17 February 1986.
- 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.
- 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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