Federal department signs new $200 million Canberra office lease

The department signed the $189 million, 15-year lease for six floors at 18 Marcus Clarke Street, Civic, with public servants to move in from May.

The move continues the exodus from the department's former site at 21 Genge Street, as the Tax Office also prepares to depart in 2025 for Barton.

At the new site in City West, 1066 Veterans Affairs staff will move into a recently refurbished 13,650 square metres of office space.

The department secured approval for a $29.6 million fit out in June and told the parliamentary standing committee on public works in May 2023 that the new premises would be better suited to the department, due to the collaborative design.

This includes "deep focus areas", breakout areas and open-plan workstations.

Chief people officer Katrina Jocumsen said the previous office was no longer appropriate for Veterans' Affairs staff.

"It does not meet DVA's business requirements and has not kept pace with changing work styles and improvements in the integration of technology," Ms Jocumsen said. "The fit-out design is inflexible and makes inefficient use of space."

With the rise in flexible working, particularly following the COVID pandemic, and a greater focus on interaction, Veterans' Affairs sought a more flexible office set up and settled on 18 Marcus Clarke Street, given its recent refurbishment.

The space provides work stations for 80 per cent of staff, with 50 per cent of staff typically working from the Civic office in person currently. Senior executives will have their own offices, along with an executive suite for secretary Alison Frame and deputy secretaries.

The committee noted that 30 per cent of the future workstations could be underutilised, if staff attendance remained the same, and recommended Veterans' Affairs monitor the number of staff working from home for future office designs.

In its proposal to move into Marcus Clarke Street, Veterans' Affairs also noted the future light rail stop at Edinburgh Avenue as a drawcard, encouraging staff to come into the office.

While the proposal describes the new stop as "imminent", staff will have some time to get settled in first, with the extension to Commonwealth Park not expected to open until 2028.