Deputy Prime Minister Richard Marles has refused to move into a Canberra office after learning upgrades had slugged an $800,000 bill on the taxpayer.
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Executive offices within the Defence Department's Russell precinct have been receiving a facelift since late 2020, and over $15 million has been allocated for the upgrades since then.
The site is home to many of Defence's highest-ranking executives, as well as temporary offices used by the minister when needed.
But Defence Minister Richard Marles baulked at an offer to move into one office, after discovering taxpayers had stumped up $800,000 for its renovation alone.
Mr Marles insisted he was not consulted on the cost of revamping the suite, which will instead be taken over by a Defence executive.
"In no world would the Deputy Prime Minister expect, or accept, a temporary office to the tune of that amount," a senior government source said.
Mr Marles will instead continue to use an office at a separate location, which required just $2000 to upgrade.
That site will also be available to the defence portfolio's three other ministers: Defence Personnel Minister Matt Keogh, Defence Industry Minister Pat Conroy, and assistant defence minister Matt Thistlethwaite.
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The revamp, which is still ongoing, includes floor and ceiling upgrades, along with boosts to the suite's security set-up.
The Office of the Secretary and Chief of the Defence Force received a similar refurbishment in December 2020.
The Russell site is typically used by defence ministers to hold meetings when their parliamentary offices are not available, and there was some discussion of removing the space entirely under the Coalition.
Upgrades to the R1 Executive Suites were approved by the Parliamentary Committee for Public Works in December 2020, under the former Coalition government.
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