Albanese government withdraws four heritage defence sites from sale

Independent audit identified 63 other properties as underutilised and costly

The Albanese government withdrew four heritage-listed defence properties from the proposed sale on Sunday. The sites are Victoria Barracks in Sydney and Melbourne, Fort Queenscliff and RAAF Base Point Cook in Victoria. The government said they will remain publicly owned, with their historic elements preserved for community use after defence personnel vacate them.

The government will work with the Australian War Memorial once the sites are free to transform them into public spaces that tell the history of Australia’s military. Sydney’s Victoria Barracks was built between 1840 and 1848, was originally occupied by the British army and is the site of the city’s oldest wine cellar.

Prime Minister Anthony Albanese said Victoria Barracks Sydney held a “special place in our nation’s history”.

Defence Minister Richard Marles said the military needed to focus its spending on keeping people safe. “Given the strategic landscape we face, we cannot afford to be wasting money. We need to look at how we best use defence money for defence capability,” Marles said. He added: “By moving personnel off these sites, and working to open them up for the public we are ensuring that the history of Victoria Barracks is one that can be protected and returned to all Australians.”

The multi-year independent audit, completed in 2023, was tasked with identifying surplus and costly defence property holdings that often cost millions to maintain. The audit found that underutilised sites are “draining resources from higher priority needs” for defence. It said: “Today’s estate footprint comprises numerous legacy sites without a clear ongoing link to current or future capabilities. Urgent interventions are needed to correct the unsustainable trajectory that has resulted from decades of deferred decisions on contentious estate issues.”

The four properties were identified with 63 others around the country as underutilised by defence, not fit for purpose and costly to maintain, and all were earmarked for sale to recoup $3bn in the federal budget. Withdrawing the four leaves 63 properties still slated for sale. Sales of 26 major metropolitan sites were expected to raise up to $2.4bn and save about $3bn in upkeep and security costs over 10 years.

Before the four sites were withdrawn, sales of the Sydney and Melbourne Victoria Barracks were expected to raise $1.3bn because of their prime locations in the biggest capital cities.

The 26 metropolitan properties include sites in Randwick, Sydney; Sandringham and St Kilda in Melbourne; Petrie Terrace in Brisbane; and Fremantle in Western Australia.

The government hopes the sales will free land for new housing developments, with a long-term target of 6,000 new dwellings. Defence expects personnel will have vacated six sites by the end of the year.

The announcement came as cabinet’s expenditure review committee, which determines budget decisions, was due to meet on Monday after the official interest rate was lifted to an 18-year high of 4.85% this week in an effort to combat persistent inflation. Treasurer Jim Chalmers said higher fuel prices caused by the Middle East conflict were the “primary driver” of inflation rather than the government’s budget.

The proposal to sell the heritage-listed sites drew opposition from the public campaign group Save Victoria Barracks Sydney, veterans and high-profile politicians including former prime ministers John Howard and Paul Keating. NSW Opposition Leader Kellie Sloane described the site as an “irreplaceable part of our military heritage that deserves to be protected for future generations”. She said: “Our military heritage and defence capability must come before a short-term cash grab.”

Shadow Defence Minister James Paterson said questions remained about whether the military should have a presence and capability in Melbourne and Sydney. “While this is a win for Australia’s defence heritage, it is only the beginning. The Coalition will continue to fight to save other critical defence sites, including HMAS Penguin, Lancer Barracks, Irwin Barracks, and more,” he said.