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The Victorian Government Land Transactions Policy (PDF, 11.0 MB) supports a consistent approach to land transactions across all Victorian Government agencies by ensuring land transactions:
Who administers the policy?
The policy is administered by the Victorian Government Land Monitor (VGLM). To find out more about the VGLM visit what we do.
When does the policy apply?
The policy applies to all land transactions conducted by Victorian Government agencies.
Land transactions under the policy include:
What are the main requirements under the policy?
When entering into a land transaction, Victorian Government agencies are required to meet the following requirements from the policy:
Accountability, transparency and legislation
Victorian Government agencies must ensure all transactions are conducted to achieve accountability, transparency and follow relevant legislation.
Victorian Government agencies must conduct appropriate due diligence to ensure they understand the status and attributes of the land before entering into a transaction.
Unless a transaction is between two Victorian Government agencies, they must obtain approval from VGLM, before:
If a Victorian government agency is selling or purchasing land, VGLM approval is also required where the value of the land or transaction is below $1,000,000 but it forms part of a group of related transactions or adjoining land parcels that have a value of $1,000,000 (GST exclusive) or more.
Before undertaking a land transaction, Victorian Government agencies must obtain a certified current market (or rental) valuation of the land from the Valuer-General Victoria (VGV), unless the transaction is between General Government sector agencies based on the book value of the land.
Victorian Government agencies must not sell (grant a lease or interest in) any land at a price which is less than the current market (or rental) value of the land as determined by VGV, unless the transaction is between General Government sector agencies based on the book value of the land.
Victorian Government agencies must not purchase (acquire a lease or interest in) any land at a price which is greater than the current market (or rental) value of the land as determined by VGV, unless the transaction is between General Government sector agencies based on the book value of the land.
Victorian Government agencies must not undertake a land transaction that involves the exchange of land.
Public sales process
Victorian Government agencies must sell land using a public process.
The only exceptions are when the land is being offered to Victorian Government agencies, local council, or the Commonwealth in accordance with the requirements of the First Right of Refusal (FROR) process established in the Sale of land with a public land zone.
Victorian Government agencies must not offer land with a public land zone for sale, unless the land is being sold to another agency that can own public land zoned land, a local council, or the Commonwealth.
Lease with option to purchase
Victorian Government agencies must not grant a lease of land that includes an option to purchase, unless it is granting the option to another Victorian Government agency.
Page last updated: 11/07/23