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Skip Navigation LinksDepartment of Housing and Public Works > Facilities > Facilities for government > Office Accommodation Management Framework > Guideline 3: Fitout > 9.0 Fitout assets

9.0 Fitout assets

9.1 Fitout acquisition

Typically, office fitout is acquired by agencies through:

  • the Department of Housing and Public Works (HPW) as part of a new building project
  • the Office Accommodation Program, administered by HPW
  • fitout projects funded by agencies or funded in conjunction with the Office Accommodation Program
  • a private sector building owner as part of a lease or pre-commitment lease agreement.

Office fitout provided through HPW is transferred to the occupying agency at the completion of fitout projects.

Office fitout acquired through a private sector building owner is treated according to the lease conditions. In such cases, expert advice is required from HPW to ensure that all legal and taxation issues are resolved prior to committing to any lease.

9.2 Fitout recognition and reporting

Office fitout is a capital asset. Agencies control rather than own office fitout, but are responsible for registering, valuing and depreciating fitouts in various buildings as assets according to Queensland Treasury's Minimum Reporting Requirements for Departmental Statements.

9.3 Fitout depreciation

The cost of depreciation is a non-cash cost that comprises a part of agencies' funded output costs. As depreciation is a non-cash expense, government does not automatically fund increases in depreciation expense relating to asset acquisitions. Increased output funding to offset increased depreciation expense is a matter for determination by the Cabinet Budget Review Committee in the relevant budget context.

For further information, please refer to the reference Funding and ownership of office fitout, included as a supporting document in Guideline 4: Occupancy.

9.4 Machinery-of-government changes

When machinery-of-government changes arise and tenant agency relocations occur, the outgoing tenant agency's fitout asset(s) can be transferred to the incoming tenant agency at book value, in accordance with accounting policy guidelines. In most cases, this approach is more cost-effective, in whole-of-Government terms, than relocating each agency's movable fitout to a new location. It is also clearly impractical to relocate partitions and other fixed fitout items.

For further information, please refer to the reference Funding and ownership of office fitout, included as a supporting document in Guideline 4: Occupancy.

9.5 Fitout removal

In the case of machinery-of-government relocations or other whole-of-Government projects involving multiple relocations, agencies are generally required to leave existing furniture and fitout in the building that they are relocating from, and will be provided with replacement items of equal quality in their new building. This requirement ensures that:

  • furniture that is matched to a particular building remains with that building
  • double handling of furniture is avoided
  • furniture for the new building is matched to that building or matched to existing fitout colours and finishes in that building.

9.6 Fitout insurance

Insurance of fitout is the responsibility of the agency that occupies the fitout and is subject to Queensland Treasury's requirements and guidelines.

Last updated 16 August 2012    Creative Commons Attribution 4.0 International (CC BY 4.0)

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