The state government has claimed it will save taxpayers $11 million a year through office consolidation, but refurbishment costs for the relocated departments' new homes are expected to reach more than $85.9 million.
Finance Minister Simon O'Brien today said the cost savings from relocating government departments from the CBD to suburban areas are estimated to total $165 million over the next 15 years.
Part of the plan is the relocation of the executive of the government, which will move the Department of Premier and Cabinet, the Public Sector Commission and 13 ministers into Dumas House.
"Thorough Treasury and Finance analysis has showed it is much cheaper to use the Dumas House precinct than to lease new space in the Perth CBD," Mr O'Brien said.
Mr O'Brien said refurbishment of Dumas House to bring it up to modern standards would cost approximately $56 million.
Also, the Office of the Premier, the State Cabinet meeting room and the Cabinet Secretariat will be relocated to heritage-listed Hale House, Mr O'Brien said.
Premier Colin Barnett said the cost of refurbishment at Hale House would be $17 million.
"There are a number of factors which have led to this decision, including the owners of Governor Stirling Tower informing the government the building would not be available from July 2012," Mr Barnett said.
"Hale House will replace two floors of space currently being leased at Governor Stirling Tower which based on projected lease costs is a saving of $1.2 million a year."
Around 25 agencies will be relocating prior to the expiry of the lease at Governor Stirling Tower, including the Department of Treasury and Financy's treasury division and the Economic Regulation Authority.
Approximately 600 of the 1,150 government employees currently located at Governor Stirling Tower will be moved to Dumas House, with the balance moving into one40william or Albert Facey House.
Refurbishment costs at Albert Facey House to improve access would cost $12.9 million.
Mr O'Brien said the first round of consolidation would be completed by June 2012.
