Policy

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:

• are accountable and transparent
• follow legislation and Victorian Government policy

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:

• the sale or purchase of land (or interest in land)
• granting or entering a lease
• paying compensation under the Land Acquisition and Compensation Act 1986 or Part 5 of the Planning and Environment Act 1987

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.

Due diligence

Victorian Government agencies must conduct appropriate due diligence to ensure they understand the status and attributes of the land before entering into a transaction.

VGLM approval

Unless a transaction is between two Victorian Government agencies, they must obtain approval from VGLM, before:

• agreeing to sell or purchase land (or an interest in land) where the value of the land or transaction is $1,000,000 (GST exclusive) or more,
• agreeing to grant a lease over land where the book value of the land is $5,000,000 (GST exclusive) or more in greater Melbourne or $3,000,000 (GST exclusive) or more in regional Victoria for a term exceeding five years,
• making an offer of compensation under the Land Acquisition and Compensation Act 1986 (LAC Act) or Part 5 of the Planning and Environment Act 1987 (PE Act) where the total amount compensation is $1,000,000 (GST exclusive) or more, and
• making an offer of additional compensation under the LAC Act, or Part 5 of the PE Act, to settle a disputed claim.

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.

Valuation requirement

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.

Sale price

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.

Purchase price

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.

Land exchange

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.

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.