Senator the Hon Katy Gallagher

A new report shows the Albanese Government has continued to drive more efficient use of Commonwealth property and office space, reducing lease costs and energy expenses.

The uptake of modern working arrangements, a reduction in the number of tenancies and more efficient energy usage have all contributed to the positive result.

This report shows that the Commonwealth has exceeded its occupational density target of 14m² per person for the second consecutive year – achieving 13.1m² – with more than 50 per cent of tenancies now exceeding this target. This is an improvement on the 13.4m² result in the 2023 report.

Our efforts to ensure more efficient property use, and our support for hybrid work, have meant that overall expenditure growth has been contained to just 0.1 per cent. The report shows:

• Cost per staff has decreased by 2.9 per cent (from $8,700 in 2023 to $8,448 in 2024).
• Number of tenancies has decreased by 6.2 per cent (a decrease of 40 tenancies).
• Total footprint has decreased by 1.2 per cent (a decrease of 36,847m²), while usable office area increased by 0.7 per cent (an increase of 15,338m²).
• Energy expenses were reduced by $9.4 million and cleaning and waste removal expenses down $8 million.

These results are in line with the Albanese Government’s commitment to reduce spending on external labour and non-wage expenses such as property, travel and hospitality.

Additional energy rating targets will apply for certain leases from 1 July 2025, as part of the Net Zero in Government Operations Strategy. Further property efficiencies and energy expense reductions are expected as part of this strategy.

The Commonwealth Property Management Framework aims to improve property management efficiency. The 2024 Office Occupancy Report is available here.

Quotes attributable to Senator Katy Gallagher:

“We have been clear that we want to see a more efficient and more effective public service that is properly resourced to do the job Australians expect of it.

“This report shows the Albanese Labor Government support for energy efficiency and modern working arrangements is driving efficiencies within the public service, reducing energy and property expenses and delivering better value for money for Australian taxpayers.”