Defence to sell $2B of land, barracks for military upgrades
- A sweeping sale of defence landholdings across Australia is expected to generate up to $3 billion, with the funds earmarked for reinvestment in new military equipment and base...
- The sale will encompass approximately 35,000 hectares of land, including islands, golf courses, rifle ranges, office buildings, and training depots.
- Defence Minister Richard Marles has decided to proceed with the sales despite opposition from within the military establishment, which has historically been protective of its access to these...
Defence Land Sales to Raise Billions for Military Upgrades
A sweeping sale of defence landholdings across Australia is expected to generate up to $3 billion, with the funds earmarked for reinvestment in new military equipment and base upgrades. The Albanese government announced the plan on Wednesday, February 4, 2026, following a long-awaited audit of the nation’s defence estate portfolio.
The sale will encompass approximately 35,000 hectares of land, including islands, golf courses, rifle ranges, office buildings, and training depots. According to the government, the divestment aims to address waste within the defence estate and ensure taxpayer money is allocated efficiently.
Defence Minister Richard Marles has decided to proceed with the sales despite opposition from within the military establishment, which has historically been protective of its access to these sites. The release of the government’s response to the audit was delayed for over two years as officials braced for potential backlash from veterans and local communities concerned about the sale of iconic defence facilities.
Among the properties slated for sale are the Victoria Barracks sites in Sydney, Melbourne, and Brisbane. This move opens the possibility of housing developments in inner-city areas. Sixty-seven defence sites will be fully or partially sold, including the birthplace of the Royal Australian Air Force in Victoria and the army’s headquarters in Sydney.
Net proceeds from the sales are estimated to reach $1.8 billion, factoring in relocation costs and remediation work, which could amount to as much as $1.2 billion. The government also anticipates annual savings of $100 million by eliminating maintenance costs associated with disused and run-down properties, including 14 vacant sites.
The audit, conducted by Jan Mason and Jim Miller, highlighted significant inefficiencies within the defence estate. Their report, delivered to the government in December 2023, stated that underutilised portions of the estate were “draining resources from higher priority needs” and that sustainment budgets were “stretched too thinly.”
The government source, speaking anonymously, stated that the current situation represents a misuse of taxpayer funds that needs to be addressed.
Sites to be Sold by State
New South Wales: The properties earmarked for sale in NSW include Victoria Barracks in Paddington, Lancer Barracks in Parramatta, a partial sale of HMAS Penguin, a partial sale of Randwick Barracks, RAAF Glenbrook, and Spectacle Island.
Victoria: Sites in Victoria include Latchford Barracks, Newland Barracks, RAAF Williams in Point Cook, a partial sale of RAAF Williams in Laverton, and the Defence site in Maribyrnong.
Queensland: Properties slated for sale in Queensland include the St Lucia Training Depot, Mount Isa Rifle Range, and Victoria Barracks.
All funds raised from the sales will be reinvested directly into defence initiatives. The process is expected to take several years to complete.