- Agencies shall use the appropriate government standard lease template as the basis for all new leases. Other lease templates shall only be used in exceptional circumstances, where it is not operationally and/or commercially practical to use the appropriate government standard lease template. Refer to the table ‘Government standard legal templates’ in the ‘Lease management guidance’ section for further information on the types of templates available.
- Where agencies consider it is not operationally and/or commercially practical to use a government standard lease template, agencies shall provide the Government Property Group (GPG) with reasons why it would not be operationally and/or commercially practical to do so and obtain GPG's prior written approval.
Prior to acquiring new leases, agencies shall ensure the appropriate approvals are obtained as follows:
- All lease proposals with a whole-of-life-cost (WOLC) of up to $15 million, if funded from baselines and balance sheets require Chief Executive approval
- All lease proposals with a WOLC between $15 million and $25 million, if funded from baselines and balance sheets require Minister approval
- All lease proposals with a WOLC over $25 million (even if funded from baselines and balance sheets) require Cabinet approval.
Note that the financial thresholds above are GST exclusive. For further information on the financial thresholds refer to Cabinet Circular (10) 2.
Acquisitions, disposals and renewals
- When acquiring new leases, agencies shall behave and negotiate with due regard to the impacts on other agencies operating in the same market.
- Agencies shall obtain approval from GPG prior to acquiring a new lease, disposing of an existing lease or exercising a lease renewal, if approval has not already been obtained as part of the biennial approval required for agency property plans. The 'Request for approval process for the acquisition, disposal and renewal of leases’ and the approval form are available for agencies to use as a guide.
- Where agencies are seeking approval through submitting an approval request form to GPG, agencies shall forward the request to GPG in advance of any critical decision date and/or prior to making a commitment.
- Any approval obtained through the biennial property plan process or the individual approval request process will be overridden if it is in conflict with any future all-of-government initiative proposed by GPG.
- When acquiring leases, agencies shall obtain an independent market rental valuation from a registered valuer, who is experienced in the commercial market and ideally has experience in the local market, before agreeing to the rental being proposed.