The New South Wales Government occupies more than 1.1 million square metres of office accommodation and incurs an annual gross rent in excess of $270 million for that space.

The NSW Government Office Accommodation Reform Program commenced in 1996 and is an integral part of the Government’s larger reform agenda. It offers an excellent opportunity to achieve savings without reducing staff numbers or the level and quality of services delivered to the people of New South Wales. A key component of the Reform Program was the establishment of the Government Asset Management Committee (GAMC) in 1998 to monitor the implementation of the reforms and to ensure the effective management of Government’s significant investment in assets and office accommodation.

The main objectives of the reforms in office accommodation management are to:

• Provide better and more sustainable workplaces;
• Support agencies in delivering their services;
• Reduce accommodation costs; and
• Contribute to sustainable regional development.

The Department of Commerce is responsible for the development and review of office accommodation policies and guidelines to meet Government objectives and promote a best practice approach to planning and management of office accommodation. It provides strategic advice to central agencies on office accommodation policy initiatives and monitors the implementation and effectiveness of these policies.

The Department of Commerce's Office of Government Procurement’s role includes the coordination of office accommodation leasing by all government agencies. It also coordinates the Government Leasing Service which conducts lease negotiations for agencies in major markets, and maintains the Government Office Accommodation Database. Additionally, it develops office accommodation strategies for key centres across NSW which examine Government’s office holdings and recommend measures to assist in improving service delivery and ensure that the use of government owned or leased space is maximised.

When the Reform Program began, space use in Government had climbed to 24m² per person. This was higher than any other government in Australia and higher than most private sector averages. By introducing an average target of 18m² per person to be achieved by agencies over ten years, Government has reduced its rental exposure significantly and the average space use in 2002 was 18.1m² per person. If space use had continued unchecked, Government’s annual rental in 2002 would have been $105 million more. It has been estimated that since 1996 Government would have paid an additional $446 million in rental if it had not introduced this program of reform in office accommodation management.