Annual Report 2005-2006

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Your location: Performance > Outcome 4 > Output 4.1 > Reporting against effectiveness indicators

OUTPUT 4.1: Property management

Reporting against effectiveness indicators

On this page: Overview :: Provision of accommodation overseas :: Physical management of assets :: Financial management of assets :: Outlook


The department fully met the Government's overseas property requirements and maintained the value of its property assets.

The department's Overseas Property Office (OPO), which is responsible for managing all aspects of the Australian Government's overseas owned property estate, continued to apply rigorous commercial practice to all aspects of property management, in accordance with principles outlined in the Australian Government Property Ownership Framework.

The department met the indicative targets under output 4.1 relating to the maintenance of the overseas property portfolio. We paid a dividend to the Government, made a return on investment and maintained a management expense ratio consistent with property industry guidelines.

The department consulted closely with the Department of Finance and Administration and government agencies represented at our overseas posts, ensuring regular and effective interagency communication on relevant property management issues.

The international security environment continued to place significant additional pressures on the department's management of the overseas property estate, especially in ensuring that all new projects fully met enhanced security requirements.

Provision of accommodation overseas

The department fully met the wide range of office and staff accommodation requirements of agencies representing the Government's interests overseas.

In 2005–06, the department managed owned properties in 58 locations, commercially valued at $1.3 billion at 30 June 2006.

The leased overseas estate comprises property leased by the department and other agencies from private landlords. The leased estate is funded from departmental appropriations (see Section 3: Corporate management and accountability on page 267 for information about the department's leased estate).

Physical management of assets

The department maintained a program of continuous assessment of all overseas property, involving annual inspections by qualified facilities managers and consultation with post management and agencies.

We assessed properties using a model developed by the department, based on property industry standards, for measuring and monitoring physical condition. The model provided a basis for determining priorities for upgrading, disposal or acquisition of property, and for refurbishment under a five-year rolling program for the owned and leased estates approved annually by the department's Senior Executive (see also quality and quantity information for output 4.1).

We continued to develop and manage a major construction and refurbishment program in the owned overseas estate, enhancing the overall quality and long-term value of the estate.

Financial management of assets

The department operates a Special Account to manage the overseas owned estate. The account, which is separate from the department's budget appropriations, was established in May 2002 by the Minister for Finance and Administration. Revenue into the account is derived from commercially based rents paid by agencies that occupy Government owned property overseas.

For reporting on financial management of the overseas owned estate, see quality and quantity Information for output 4.1.


We will manage a significant construction program in the overseas property estate in 2006–07. This will include ongoing construction works on our new chancery in New Delhi and new chanceries in Rangoon and Vientiane, refurbishment of the chanceries in Wellington and Singapore, and major works at Australia House in London. We will maintain our program of post inspections and assessments to enhance the value of the estate and ensure compliance with appropriate standards.

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