The Victorian adult corrections system includes more than 50 community correctional facilities, 14 prisons and a transition centre. Figure 1A shows the prisons and transition centre, along with their operational capacity, at December 2017.

Figure 1A
Victoria's prison system

Victoria's prison system faces significant challenges and risks:

Figure B1
Legislation impacting the sale and management of surplus land

We have consulted with DTF, DELWP, DET, DHHS and VicTrack, and we considered their views when reaching our audit conclusions. As required by section 16(3) of the Audit Act 1994, we gave a draft copy of this report, or relevant extracts, to those agencies and asked for their submissions and comments. We also provided a copy of this report to the Department of Premier and Cabinet.

Responsibility for the accuracy, fairness and balance of those comments rests solely with the agency head.

Responses were received as follows:

DTF

Each year, the government sets targets for the sale of surplus land. If agencies meet their targets, they can access up to 10 per cent of the proceeds. This system aims to provide an incentive for agencies to release land for sale in a timely manner.

The sale of surplus government land provides a range of possible benefits, including:

For government to plan strategically and make good decisions about how to make the best use of surplus government land, it needs accurate information. Each year, departments report to DTF on their landholdings. As part of this process, agencies are required to:

• assess the utilisation status of their land assets
• identify any surplus sites
• justify the retention of each site.

This process does not apply to DoH and VicTrack, as they own and manage their own assets.

The need for governments to own land changes in response to population growth and shifting demand for public services. As needs change, government land may become surplus to requirements. The sale of public land generates significant revenue for government and attracts strong community interest. Over the past 10 financial years, the Department of Treasury and Finance (DTF) has sold 695 properties, generating over $928.7 million of sales revenue for the state.

Governments own land for a variety of public purposes, including for housing, health, education, police services, and for community activities, sport and recreation. Governments also own land to protect its environmental or heritage value in the form of national and state parks or reserves.

The need for government to own land changes over time, in response to demand for public services, population change or new policy priorities. As a result, there will always be some land that becomes surplus to government needs.