iscover ATO’s nearly $100m splurge on Melbourne office referred to inquiry
TaxThe Senate has opened an inquiry into the ATO’s $95 million fit-out of its Melbourne CBD office, after it signed a new 10-year lease at the Docklands location.
The Senate has approved the Parliamentary Standing Committee on Public Works to conduct an inquiry into the ATO’s proposed $95 million fit-out across 22,000 square metres of office accommodation at its leased Docklands, Victoria office, on 9 September.
The office is located at 747 Collins Street, Docklands, Victoria, and the Tax Office has recently renegotiated its lease with the landlord for a further 10-years commencing in May 2027.
Speaking with Accountants Daily, an ATO spokesperson said: “Following a competitive market process, the ATO determined that remaining at the current Docklands location under a new 10-year lease represented the best value-for-money outcome for the Commonwealth.”
This new lease agreement reduces the Tax Office’s current 38,375 square metres at the site by 16,000 square metres, resulting in an occupational density of around 7-8 square metres, to fall within the government’s occupational density target of 14 square metres per occupied work point.
“The new lease reduces the amount of office space occupied by the ATO, reflecting changing workplace needs and more efficient use of accommodation,” the spokesperson said.
“A fit-out of the retained space is required to ensure the accommodation remains safe, functional and fit for purpose, while also supporting updated access and security arrangements.”
The Tax Office’s spokesperson told the brand that the estimated $94.74 million (excluding GST) price tag of the fit-out will include the design, construction, fit-out, IT provisioning, project management, specialist consultancy services and contingency allowances.
For the inquiry, the Parliamentary Standing Committee on Public Works is required to report on the Tax Office’s “stated purpose of the proposed work and its suitability for that purpose, the need for the work, the cost-effectiveness of the proposal, the amount of revenue it will produce if the work is revenue producing, the current and prospective value of the work”.
Submissions are open until Thursday, 22 October 2026.
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