NSW government considers selling Harwood Building to cover museum budget blowout

The New South Wales government is considering the sale of the 125-year-old Harwood Building to address an $80 million budget overrun facing the Powerhouse Museum Ultimo rebuild. The building, a former tram shed, currently houses museum offices and workshops.

The $300 million Ultimo rebuild is facing significant financial and operational hurdles. Costs have been driven up by $20 million to $30 million due to the discovery of asbestos and lead paint contamination that was not identified in previous testing. Additionally, the project is running up to two years behind schedule, with doors not expected to open until early 2029.

These financial pressures coincide with leadership changes. Chief Executive Lisa Havilah was recently stood aside following whistleblower allegations regarding procurement and potential conflicts of interest. The museum’s new leadership team, Abbie Galvin and Louise Herron, is also managing the upcoming November 7 opening of the $1 billion Parramatta headquarters.