Government to Sell Historic Defence Properties, Raising Up to $1.8 Billion
The Australian government is moving forward with a large-scale sale of defence properties across the country, aiming to generate up to $1.8 billion to address critical capability gaps and redirect investment towards northern bases and the AUKUS program. The plan, announced today, , involves the divestment of 67 sites identified as lightly used or vacant.
Among the high-profile properties earmarked for sale are Victoria Barracks in Sydney, Brisbane, and Melbourne, as well as Spectacle Island in New South Wales and HMAS Penguin, also in New South Wales. The decision follows a sweeping independent audit of the Defence estate, which found that large portions of the department’s 3-million-hectare estate were no longer necessary and many facilities had “already deteriorated beyond the point of economical repair.” Maintaining the current status quo was deemed “not an option” by the auditors, Jan Mason and Jim Miller.
The audit suggests the consolidation of the Defence estate could generate approximately $3 billion in sales revenue, in addition to saving up to $100 million annually in maintenance costs. However, the government anticipates incurring costs of up to $1.2 billion during the sell-off process, including expenses related to relocating staff and remediating contamination at the sites.
The move is expected to free up land for housing and other development opportunities, particularly in inner-city areas. The Victoria Barracks sites, for example, have previously been used as a training ground by the Sydney Waratahs rugby team. The sale of these properties is intended to allow the public greater access to sites with significant heritage value, as Defence Minister Richard Marles stated, “The heritage value of these properties does not belong to the Australian Army or, for that matter, the Australian Defence Force. It belongs to the Australian people.”
While the government anticipates significant financial benefits from the sales, the plan is already facing resistance from community groups concerned about the preservation of heritage values and the potential for inappropriate residential developments on the sites. Veterans groups have also expressed wariness, fearing the sell-off could undermine the military’s presence in major cities and hinder recruitment efforts.
The properties being sold include not only barracks but also islands, golf courses, rifle ranges, office buildings, and training depots across Melbourne, Brisbane, and Sydney’s north shore and eastern suburbs. The government’s response to the audit was delayed for over two years as it prepared for potential backlash from stakeholders.
The sale is a response to the 2023 Defence Strategic Review, which assessed the suitability of the ADF’s real estate portfolio to meet current and future military needs. The funds raised will be reinvested into new military equipment and upgrades to essential bases.
