The ACT government has passed legislation that secures its support for UNSW Canberra to establish a campus in Canberra City.
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The Planning and Development Amendment Bill 2020 establishes the ACT government's commitment to lease land to UNSW Canberra.
Under this bill the ACT government will spend $25 million on the project in addition to site remediation.
The new university is expected to be built on Constitution Avenue in Reid, where CIT Reid is currently located.
This follows a push by UNSW to establish a new campus in March, despite concerns about the university's finances due to COVID-19.
The new campus will have a focus on research in security and defence, will cater for up to 6000 students and will create 2000 jobs.
UNSW Canberra is continuing to develop its master-plan for the new campus.
The Group of Eight university received 300 pieces of feedback during consultation with Canberrans from March to May.
Minister for Planning and Land management Mick Gentleman said the project was exciting.
"[It] will play a major role in the renewal of the city centre, and elevate Canberra's reputation as the knowledge capital," he said.
"It also ensures that UNSW Canberra has appropriate flexibility to operate the new campus and that the community has confidence that the land will only be used for its intended purposes."
Mr Gentleman said the 20 year lease to the university was also protected by the bill as any transfer of the land would require the consent of the Planning and Land Authority.
"Any transfer would have to be to a vocational or tertiary education provider registered under Commonwealth legislation," he said.
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"The ACT government looks forward to continuing to work with UNSW Canberra as they continue to engage with the community about the new campus."
A spokesperson from UNSW Canberra said "UNSW Canberra welcomes the passage of the Planning and Development Amendment Bill 2020 in the Legislative Assembly today. It is great to see the bill has been prioritised and has bipartisan support."