Mr. McGowan questions the Treasurer about the increasing rental costs for government agencies from 2005-2010. The Treasurer acknowledges the increase and outlines a plan to decentralise and consolidate office space to save $20-25 million annually by 2015.

AnsweredQoN 2966Legislative Assembly
Asked
19 May 2010
Portfolio
Treasurer

QuestionView source ↗

(1) What was the total annual cost spent on rent for government agencies over the following financial years:
(a) 2005–2006;
(b) 2006–2007;
(c) 2007–2008; and
(d) 2008–2009?
(2) What was the total cost of rent for government agencies between 1 July 2009 and 1 May 2010?

AnswerView source ↗

Answered
9 September 2010
Response time
113 days
(1) The total annual cost spent on rent for Government office accommodation managed by the Department of Housing and Works (and since February 2009 by the Department of Treasury and Finance) was as follows:
(a) 2005-2006:
- Net Rent - $54.1 million; and
- Outgoings - $23.7 million.
(b) 2006-2007:
- Net Rent - $59.7 million; and
- Outgoings - $26.4 million.
(c) 2007-2008:
- Net Rent - $81.2 million; and
- Outgoings - $31.2 million.
(d) 2008-2009:
- Net Rent - $100 million; and
- Outgoings - $36.6 million.
(2) The total cost of rent for Government office accommodation managed by the Department of Treasury and Finance between 1 July 2009 and 1 May 2010 was:
- Net Rent - $100.6 million; and
- Outgoings - $34.1 million.
In recognition of these increasing rental costs, particularly for central business district (CBD) accommodation, the Government has implemented a Government Office Accommodation Master Plan. A focus on decentralising accommodation from the CBD to suburban activity centres, and consolidating remaining CBD space into a smaller number of buildings combined with a new fitout standard, is expected to deliver savings of $20-25 million a year in accommodation costs by 2015.
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