ATO move to Barton throws Civic businesses into uncertainty, as union blasts agency's 'callous indifference'

The Australian Taxation Office's move from Canberra's CBD will have business owners holding their breaths while the search begins for new tenants at the agency's buildings on Genge Street and Narellan Street.

Canberra's business chamber says the ATO's plan to leave Civic - removing 2000 workers from the city centre - will further disrupt a precinct already grappling with uneven trade caused by the increase in people working from home.

But the ACT government is trying to reassure worried business owners, saying office space in Civic remains in high demand and that the number of residents in the precinct is growing.

Steve Wynn, owner and manager of Genge Street cafe The Bearded Bean, said the loss of customers resulting from the ATO's move to Barton could devastate his business if a new tenant for the building wasn't found in time.

Among the main uncertainties was the interim between the ATO's planned relocation in 2025 and the expiry of its two Civic office leases in 2027.

"I'm a little bit worried about that two-year transition, am I going to have an empty building for two years? That will kill me," Mr Wynn said.

"Some sort of quick turnaround for another new tenant to move in, that might be different. But I doubt that's going to happen. It's never quick."

Mr Wynn said the business had already faced a tough few years during COVID and through a reduction in customers as people opted to continue working from home after lockdowns ended.

"We've really struggled. I thought we were starting to come out of it now, because they're just starting to come back to the building and now they've announced that they're going to be moving out of the city.

"It's really going to affect all the little businesses around here, but particularly ours as we're right underneath them."

Jake Bentley, manager at Bunda Street cafe Gus' Place, said the ATO was one of its main sources of customers. Unless the Genge Street and Narellan Street offices were leased to another employer, the knock-on effects of the agency's move could hurt the cafe, he said.

"A lot of people do rely on business from the public service around here," Mr Bentley said.

Canberra Business Chamber chief executive Graham Catt said hybrid working - a combination of working from home and the office - had changed trade patterns in the CBD. Business was quiet on some days, and occupancy figures showed offices were sometimes only 30 per cent full, he said.

"The exit of a number of office workers again from the city centre really is going to be a concern for those members that are already in some cases struggling with the level of trade and the level of business there is in that city precinct," Mr Catt said.

He said Civic businesses needed to be kept informed about the future of the ATO's offices, to allow them to plan. Businesses also wanted the ACT government to outline its vision for the CBD after the pandemic as more workplaces opted for remote working, Mr Catt said.

An ACT government spokesperson said the ATO's decision to relocate to Barton may impact daytime activity in the city centre, however office space in Civic was in high demand.

"The property owners will seek another tenant to take up this accommodation between now and the ATO's relocation in 2025," the spokesperson said.

"Looking ahead, Civic continues to grow with more people moving into the city each year."

Commonwealth government agencies continued to create activity in the city centre, and new developments including the UNSW Canberra city campus would bring thousands more people into the city centre over coming years, the spokesperson said.

Construction of the Tax Office's new building in Barton could begin in April next year after the agency signed a $323.4 million lease to occupy the site for 15 years.

The Australian Taxation Office briefed its Canberra staff about the relocation plans on Wednesday, after telling them it had decided to depart its Civic offices in 2025.

A union representing ATO staff said the announcement had stunned and disappointed Canberra-based members who were concerned about parking availability, additional commute times and lack of access to shops in Barton.

Australian Services Union official Jeff Lapidos said the new offices at 15 Sydney Avenue would be difficult to access by car.

"The parking fees are expensive with inadequate parking spaces numbers in Barton, and much is a long walk away from the new location," he said.

"Public transport to the Barton location is poor, especially compared to the current location which is well served by light rail and buses.

"Access to shopping from the Barton location is poor compared with the variety and choice of shops, cafes and eateries in the current city location.

"There are small shopping centres a short drive away, but these are a good 15 minute walk. So much for popping out for a coffee or lunch break or to pick something up from a chemist or supermarket. It will be a trial for those with mobility issues."

Mr Lapidos said the ATO's decision continued a pattern of "callous indifference" to staff needs after the agency denied vulnerable staff additional time working from home to avoid COVID.

"Of course the new building will be a hot desking office for all except the statutory officers and the Senior Executive Service," he said.

"The former will retain their prized office suites and the SES will each get their own office and access to on-site parking."

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The building project is a joint venture between Canberra property developer Doma and Kenyon Investments.

Doma, which owns the Sydney Avenue site and is acting as the development manager, will engage local Canberra builder Bloc to deliver the project using local subcontractors and suppliers. The building has been designed by BVN Architects.

Doma expected to lodge a works approval with the National Capital Authority, which oversees Commonwealth land, on Wednesday and hopes to start construction in April 2023.

The ATO's decision to leave Civic ends a two-year search for new offices as the agency looked to bring its employees - currently spread across two separate sites in Civic - into a single building.

The 11,560 square metre Barton site, on the corner of Sydney Avenue and National Circuit, will locate the ATO near Parliament House and other major federal employers including the Department of Foreign Affairs and Trade.

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