Construction on the Department of Social Services' new accommodation in Tuggeranong was expected to start this year and staff would move in by the end of 2016.
“After so much uncertainty over the future of this Department in Tuggeranong under the former Labor Government, it is encouraging to see such progress on the project,” said ACT Senator Zed Seselja, who has been fighting to keep the department in the struggling town centre.
“Keeping DSS in Tuggeranong is very important to keep the local business community thriving and I am proud to have successfully fought to keep these 2000 employees in the Tuggeranong area."
The new building will have a five-star energy rating and, subject to Public Works Committee and tender processes, would be built by a private firm with funding from the Commonwealth.
Tuggeranong emerged as one of the ACT's few winners from the federal budget with the Department of Social Services receiving $26.8 million towards a new office.
The funding, believed to be just the first instalment, will go towards the relocation and fit-out of new department space, as upgrades to the existing Tuggeranong Office Park site were deemed too costly.
The new location has been confirmed in Tuggeranong with staff to move once the existing lease ends in December 2016.
A total of $18.5 million in capital funding will be delivered over the next two years for the move.