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The Victorian Government Land Transactions Policy and Guidelines support 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 and guidelines?

The policy and guidelines are administered by the Victorian Government Land Monitor (VGLM). To find out more about the VGLM visit what we do.

When do the policy and guidelines apply?

The policy and guidelines apply to all land transactions conducted by Victorian Government agencies.

Land transactions under the policy and guidelines include:

What are the main requirements under the policy and guidelines?

When entering into a land transaction, Victorian Government agencies are required to meet the following requirements from the policy and guidelines:

Accountability and transparency

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.

Sale price

Victorian Government agencies must not sell, or grant a lease or interest in, land at a price that is less than the current market (or rental) value of the land. The current market value is determined by Valuer-General Victoria (VGV).

Purchase price

A Victorian Government agency must not purchase, enter into a lease, or acquire an interest in any land at a price which is greater than the current market (or rental) value of the land. The current market value is determined by VGV.

VGLM approval

A Victorian Government agency must obtain approval from VGLM, before:

VGLM approval is also required where the value of the land or transaction is below $750,000 but it forms part of a group of related transactions or adjoining land parcels that have a value greater than $750,000 (GST exclusive).

Public process

A Victorian Government agency must conduct a public process when selling land.

The only exceptions are when the land is being offered to Victorian Government agencies, local government, or the Commonwealth.

Internal government transactions can follow the First Right of Refusal (FROR) process established in the Victorian Government Landholding Policy and Guidelines (PDF, 537.6 KB).

Zoning

Before offering land for sale, a Victorian Government agency must have the most appropriate zoning in place.

This is so that when the land is sold the highest and best use of the site is taken into consideration.

Lease with option to purchase

A Victorian Government agency must not grant a lease of land that includes an option to purchase, unless the lease is granted to another Victorian Government agency.

Page last updated: 23/11/20