Governance

Principal objectives  

Under the Landcom Corporation Act 2001, Landcom has seven principal objectives:

1. To be a successful business and, to this end: 
   
   1. To operate at least as efficiently as any comparable businesses; and 
   2. To maximise the net worth of the State’s investment in it; 
2. To exhibit a sense of social responsibility by having regard to the interests of the community in which it operates; 
3. To protect the environment by conducting its operations in compliance with the principles of ecologically sustainable development contained in Section 6(2) of the Protection of the Environment Administration Act 1991; 
4. To exhibit a sense of responsibility towards regional development and decentralisation in the way in which it operates; 
5. To undertake, or assist the Government in undertaking, strategic or complex urban development projects; 
6. To assist the Government in achieving its urban management objectives; and 
7. To be a responsible developer of residential, commercial and industrial land. 

The first four apply to all State Owned Corporations and the final three are specific to Landcom.

Principal functions

Under the Landcom Corporation Act 2001, Landcom has the following principal functions:

1. To undertake and participate in residential, commercial, industrial and mixed development projects; 
2. To provide advice and services related to urban development, on a commercial basis, to government agencies and others; and the following additional functions; 
3. To provide facilities or services that are ancillary or incidental to its principal functions; and 
4. To conduct any business or provide any service (whether or not related to its principal functions) that it considers will further its objectives. 

Statement of Priorities 

Under the Landcom Corporation Act 2001, Landcom’s Portfolio Minister periodically issues a Statement of Priorities for the Board. The current priorities, issued in 2022 and agreed between the Portfolio and Shareholders Ministers and Landcom Board are for Landcom to:  

1. Continue Landcom’s work to increase the supply of diverse and affordable housing, as well as continue to meet its existing target of 10 per cent of affordable housing in metropolitan NSW; 
2. Expand the focus of Landcom’s business to regional NSW and build a portfolio of projects in regional NSW by mid-2024; 
3. Raise the target of affordable housing, including rental and freehold sale, to at least 20 per cent across Landcom’s portfolio of regional projects by 2025, with a goal of 30 per cent in regional NSW beyond that date, subject to market conditions; 
4. Provide reasonable assistance, wherever commercially practicable, to the NSW Land and Housing Corporation with respect to the delivery of regional housing projects; and 
5. Partner with NSW Government development corporations and agencies, on a commercial basis, to deliver additional housing supply and improve housing affordability. 

Government expectations

In 2022, Landcom’s Shareholder Ministers provided guidance on the Government’s expectations for Landcom. In addition to expecting Landcom to enhance the affordability and diversity of housing supply with an increasing focus on regional housing, as outlined in the Statement of Priorities, the Statement of Expectations asks Landcom to: 

1. Maintain high standards of public accountability and corporate governance 
2. Proactively communicate and engage with the Government to keep them informed of relevant matters of interest related to their accountabilities; and 
3. Maintain the highest standards of governance, probity and integrity in line with government policies and community expectations. 
4. Ensure the Government’s investment of its capital is used efficiently 
5. Optimise business performance and deliver efficiencies to ensure it maximises sustainable returns to government without compromising service quality, community outcomes and safety; and 
6. Proactively identify surplus or underutilised assets and land whose value could be realised.  
7. Operate the business sustainably.
8. Plan and manage operations in a way that is consistent with the Government’s Net Zero Plan, including Stage 1 of that plan to fast-track emissions reduction over the next decade; 
9. Help support NSW communities to benefit from the economic and employment opportunities created by decarbonisation; and 
10. Monitor and report annually its activities against agreed sustainability reporting and climate risk disclosure frameworks. 
11. Ensure robust procurement and employment practices that support the economic and social outcomes of the state 
12. Support diversity in its suppliers by considering procuring from small and medium enterprises, Aboriginal businesses, regional businesses, disability employment organisations, and social enterprises;  
13. Assist small and medium enterprises to become more competitive by providing suitable feedback following unsuccessful tender bids; 
14. Ensure payments to all suppliers, but particularly small and medium enterprises, are made on time, and where possible, faster than the payment terms required; and 
15. Support female workforce participation.