Several government-leased buildings could fail to meet the public service's net zero 2030 target, according to Canberra real estate agents.
The Australian Tax Office's new building in Barton will already be behind the government's energy target when staff move into the office in early 2026.
Canberra Commercial real estate agent Michael Ceacis said some leases were being renewed that won't meet future government environmental targets.
He believed the only building that met the new zero emission target was 1 City Hill, which was under construction.
"Everything that's being renewed at the moment, [that's not] a new building, it's not going to meet the target," he said.
"There's no incentive for the owners to actually spend money to bring the standard up because they've got a tenant in place, they've got a lease for five, 10 years.
"On one side, the Commonwealth sets all the standards and on the other side, they're not following it."
Higher energy targets
In 2023 the federal government committed to achieving net-zero greenhouse gas emissions from its operations by 2030. From July 1, 2025, new building leases signed by government departments for more than four years must have a 5.5-star or higher NABERS energy ratings.
A lower energy rating means the ATO could be hard pressed to meet the public service's net-zero emissions target by 2030.
The tax office signed the 15-year lease for the new building at 15 Sydney Avenue, which was constructed especially for the agency, in 2022 for more than $320 million.
The lease was signed prior to the government's net-zero strategy, and aligned with the target of the time of a 4.5 NABERS energy rating.
An ATO spokesperson confirmed the tax office is pursuing a net-zero building emissions target by 2030.
"In line with our commitment to the environment and approach across all offices, the ATO will work collaboratively with the landlord to identify and implement initiatives that improve our environmental performance and reduce greenhouse gas emissions," they said.
Push for sustainable offices
Several government-leased buildings are rated below the incoming standard according to research from The Canberra Times, including the Australian Tax Office's building in Barton, and the Department of Social Services' office in Greenway, which both have a rating of 4.5 NABERS stars.
The offices of the Department of Climate Change and Department of Foreign Affairs on Allara Street also only have a rating of five stars, as well as Services Australia's building on Canberra Avenue.
A Department of Finance spokesperson said the net-zero strategy does take into account commercial realities and the wider cost-of-living pressures in the community.
"Market availability and operational requirements can impact the ability for leases to meet sustainability requirements in the short term," they said.
"[The strategy works on] identifying and targeting actions where it would be appropriate to lead and drive change in the market."
CBRE leasing agent Ravi Soni said while offices in the ACT may not currently meet the government's standards, there's been moves to change that.
"You can already see [the strategies'] impact with most new office buildings nearing completion or under construction in the ACT aiming to be fully electric," he said.
"These policies are also encouraging asset owners with existing office buildings in the ACT to review their own pathways to electrification and net zero... you can see this demonstrated across many assets in Canberra, which have recently gone through their refurbishment strategies.
"However, the market must also consider that these measures are costly, and hence, require an uplift in rents or other incentives to stack up for asset owners and investors."
