Four heritage-listed defence sites, including Sydney’s Victoria Barracks, will remain in public hands after the Albanese government reversed course in the face of significant public opposition to their proposed sale.
The properties, along with 63 others nationwide, were flagged in an independent audit as underutilised, unfit for purpose, and costly to maintain. The government had earmarked them for sale to recoup $3 billion in the federal budget.
The plan to divest the heritage-listed sites drew fierce criticism from the Save Victoria Barracks Sydney campaign group, veterans, and high-profile political figures including former prime ministers John Howard and Paul Keating.
Ahead of a crucial cabinet budget meeting on Monday, the government confirmed on Sunday that four sites—Victoria Barracks in Sydney and Melbourne, Fort Queenscliff, and RAAF Base Point Cook in Victoria—will remain publicly owned. Their historic elements will be preserved for community use once defence personnel vacate the premises.
Prime Minister Anthony Albanese said Victoria Barracks Sydney holds a “special place in our nation’s history,” while Defence Minister Richard Marles emphasised the need to prioritise defence spending on capability.
“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.
“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 government will collaborate with the Australian War Memorial to transform the vacated sites into public spaces that narrate Australia’s military history.
Sydney’s Victoria Barracks was constructed between 1840 and 1848 and originally housed the British Army. The site also contains the city’s oldest wine cellar.
Shadow Defence Minister James Paterson warned that questions remain regarding the necessity of a military 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.
NSW Opposition Leader Kellie Sloane described the site as an “irreplaceable part of our military heritage that deserves to be protected for future generations.”
“Our military heritage and defence capability must come before a short-term cash grab,” she said.
The multi-year audit, completed in 2023, was tasked with identifying surplus and costly property holdings, often requiring millions in maintenance.
The review found that underutilised sites are “draining resources from higher priority needs” for defence.
“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 audit stated.
The sale of the Sydney and Melbourne Victoria Barracks alone had been expected to raise $1.3 billion, given their prime locations in the nation’s largest cities.
Up to $2.4 billion was projected from the sale of 26 major metropolitan sites, saving approximately $3 billion in upkeep and security costs over a decade. These properties include sites in Randwick, Sydney; Sandringham and St Kilda, Melbourne; Petrie Terrace, Brisbane; and Fremantle, Western Australia.
The government anticipates the sales will free land for new housing developments, with a long-term target of 6,000 new dwellings.
Defence expects personnel to have vacated six sites by the end of the year.
The announcement comes as the cabinet’s expenditure review committee, which determines budget decisions, convenes on Monday following the Reserve Bank’s decision to lift the official interest rate to an 18-year high of 4.85% to combat persistent inflation.
Treasurer Jim Chalmers said this week that higher fuel prices driven by the Middle East conflict were the “primary driver” of inflation rather than the government’s budget.
