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26/11/2024

Introduction

The Commonwealth Property Management Framework (CPMF) is mandatory for officials and accountable authorities of non-corporate Commonwealth entities (NCEs).

Where applicable, corporate Commonwealth entities (CCEs) are subject to legislative and policy aspects of the CPMF, such as the Lands Acquisition Act 1989 and Public Works Committee Act 1969, and are responsible for ensuring compliance.

The CPMF also includes links to relevant guidance, including Resource Management Guides (RMGs), developed by Finance to assist NCEs manage their property needs. Additional information and guidance is available at Property and Construction including links to the Lands Acquisition Framework.

Purpose

The purpose of the Commonwealth Property Management Framework is to facilitate informed decision-making by NCEs and to establish a foundation for achieving value for money, demonstrated through:

  • effective planning
  • ensuring the efficient use of property wherever possible, including through a cooperative, whole of government approach to property management outcomes
  • accountable and transparent decision-making
  • appropriate engagement with risk
  • compliance with relevant legislation and Commonwealth policies, including with respect to the environment, heritage, and use of public resources.

Application of Policy

The Commonwealth Property Management Framework applies to property owned or leased by the Commonwealth in Australia, including external territories, and for property located overseas. 

Requirements that must be complied with in respect of the CPMF are denoted by the term ‘must’. The term ‘should’ indicates good practice.

The CPMF applies to the overseas estate aside from relevant policies and legislation that relate to domestic property management and cannot be traditionally applied overseas.

Legislative and policy environment

The Commonwealth Property Management Framework does not operate in isolation. Relevant entities and officials should be mindful of the broader legislative and policy environment within which the Property Framework is situated including other relevant Commonwealth legislation and policy obligations – including:

Public Governance, Performance and Accountability Act 2013 (PGPA Act)Under the PGPA Act, accountable authorities and officials have a duty to promote the proper use and management of public resources. In relation to the CPMF, proper use means efficient, effective, economical and ethical management of owned and leased Commonwealth property.

Commonwealth Procurement Rules

 

The CPMF complements Division 1 of the Commonwealth Procurement Rules (CPRs), such that officials of NCEs must comply with and demonstrate value for money to ensure the best outcome from property decisions.

The CPMF operates in respect of property-related transactions that are otherwise exempt from Division 2 of the CPRs (due to the use of Exemption 1 in Appendix A of the CPRs). In accordance with Section 4 of the CPRs, the Property Services Coordinated Procurement (PSCP) Arrangements are mandatory for all NCEs.

Commonwealth Risk Management Policy

 

The Commonwealth Risk Management Policy requires accountable authorities and officials to establish and maintain appropriate systems and internal controls for the oversight and management of risk. This is also applicable to property management.

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Related property management legislation includes:


Public Governance, Performance and Accountability Act 2013

Acquisitions under the LAA are procurements, and as such they need to comply with the Commonwealth Procurement Rules and the broader Resource Management Framework in the PGPA Act. In particular, the PGPA Act requires public officials to act honestly, in good faith and requires officials to manage or use public resources in a proper manner, which means that it is spent in a way that is efficient, effective, economical and ethical. In Commonwealth procurement, this requirement is defined as achieving value for money.

Section 8Public resources be used or managed in an efficient, effective, economical and ethical manner.
Section 15Accountable authorities of Commonwealth entities have an obligation to promote the proper use and management of the public resources for which the accountable authority is responsible.
Section 16An Accountable Authority's duty to establish appropriate internal control systems for their relevant entity. Accountable Authorities should draw on this Framework to establish Accountable Authority Instructions (AAIs) and operational requirements in relation to acquisitions and disposals of interest in land.

The Commonwealth Resource Management Framework governs how officials in the Commonwealth public sector use and manage public resources. The framework is an important feature of an accountable and transparent public sector and informs the Australian people of the daily work of Commonwealth entities and their employees. The cornerstone of the framework is the PGPA Act and also includes the Public Governance, Performance and Accountability Rule 2014 and the Public Governance, Performance and Accountability (Financial Reporting) Rule 2015.

The Commonwealth Procurement Rules (CPRs) govern how entities buy goods and services, and are designed to ensure the Government and taxpayers get value for money. Finance looks after the Commonwealth Procurement Framework, and assists both Government and business through advice, support and services. NCEs and prescribed CCEs must comply with the CPRs when undertaking procurements, including acquisitions of interests in land under the LAA.

For clarity, procurement of goods and services includes every type of right, interest or thing which is legally capable of being owned. This includes, but is not restricted to, physical goods and real property as well as intangibles such as contract options and goodwill.

  • RMG-500 Commonwealth Property Management Framework
  • RMG-501 Lands Acquisition Framework
  • Commonwealth Property Disposal Policy
  • Property Service Coordinated Procurement (PSCP) Arrangements
  • Commonwealth Leasing Strategy
  • Other Property Guidance
  • Accountable Authority Instructions (AAIs)

Other Property Policy Considerations

There are other policies of the Australian Government that impact and guide decision-making in the property context.

The Net Zero in Government Operations Strategy describes the approach for implementing the Australian Government’s commitment to achieve net zero government operations by 2030. This includes requirements for buildings, energy, procurement and other matters. 

The Net Zero in Government Operations Strategy supersedes the Energy Efficiency in Government Operations Policy.

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