The NSW Parliament has passed legislation to support “better use and management” of the state government’s property portfolio.
Changes have been made to the Property NSW Act 2006 to reflect and clarify the functions provided by Property and Development NSW (PDNSW) – the government’s central property agency. The Act will be called the “Property and Development NSW Act 2006”.
The changes to the Act include clarifying and simplifying PDNSW’s existing capability to acquire and lease property, to reduce red tape in coordinating acquisition processes.
Additionally, the Act enables the compulsory acquisition of land, removing the need for PDNSW to rely on other agencies to acquire land assets before transferring them to PDNSW.
It also reduces the administrative burden by eliminating the need for agencies to obtain two separate land valuations for financial reporting obligations and the NSW Government Property Register (GPR).
The Act now also clarifies PDNSW’s capability to provide information and advisory services related to land, facilitating the improved identification of land assets for future reuse.
The changes further allow the acquisition and holding of land for environmental and sustainable development, including the remediation of contaminated land.
The Act enables the creation of public subsidiaries, allowing PDNSW to manage property assets for agencies more effectively, avoiding negative financial impacts such as duties and land tax, and managing short-term assets requiring adaptive reuse.
Lastly, PDNSW is now permitted to grant leases and interests in land to non-Government parties when the land is not in use for government purposes, supporting short-term vacancies, meanwhile use, and providing management or services for government-owned mixed-use precincts and buildings.
Minister for Lands and Property Steve Kamper said the PDNSW role has expanded and change since it was first established in 2006.
“We’ve passed this legislation to improve PDNSW’s operations, cut red tape and ensure its current remit is accurately reflected to enable more efficient and seamless service delivery.”
Property and Development NSW Chief Executive Officer Leon Walker said the legislation reflects the focus of the PDNSW.
“This will improve the services we provide, boost our efficiency, clarify our existing functions, and enable PDNSW to better manage our vast portfolio of government-owned property assets.”
The changes were first proposed as the Property NSW Amendment Bill 2024 introduced to the NSW Legislative Assembly in March and passed through both houses of Parliament within the last fortnight.