Historic barracks and defence sites to be sold to fund military upgrades
A dramatic sale of 35,000 hectares of defence real estate – including some of the nation’s most historic barracks – is expected to raise almost $2 billion to be ploughed back into new military equipment and upgrades to essential bases.
Islands, golf courses, rifle ranges, office buildings and training depots across the country will be sold under the Albanese government’s long-awaited response to a sweeping audit of the nation’s defence estate portfolio.
The government has decided to stare down opposition to sell-offs from the military establishment, which has jealously guarded its access to prized sites
The release of the government’s response to the audit has been delayed by over two years as it braces for blowback from veterans and local communities to the sale of some of the country’s most iconic defence facilities.
This masthead revealed on Wednesday that the Victoria Barracks sites in Sydney, Melbourne and Brisbane will be sold, opening up 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 – raising an estimated $3 billion.
Relocating staff and remediation works ahead of sale could cost as much as $1.2 billion, meaning net proceeds of up to $1.8 billion are expected from the divestments.
The government also expects to save $100 million a year by eliminating maintenance costs.
All the money raised from the sales, which are expected to take years to complete, will be reinvested into defence.
The audit, conducted by former Defence Housing Australia managing director Jan Mason and Infrastructure Victoria chair Jim Miller, found the defence estate is riddled with waste and that tough decisions are required to ensure taxpayer money is being spent wisely.
“It is very clear and widely acknowledged that Defence does not need and cannot afford all of the current estate,” Mason and Miller wrote in their audit report, delivered to the government in December 2023.
“Underutilised portions of the Defence estate are draining resources from higher priority needs. Sustainment budgets as they relate to this part of the estate are stretched too thinly, resulting in critical failures and costly unscheduled repairs.”
The auditors acknowledged that their recommendations “are likely to evoke strong emotions associated with its history, scale and diversity”.
A government source, speaking on condition of anonymity to discuss sensitive matters, said taxpayers had been “pissing money up against a wall and it needs to stop”.
In NSW, the sites to be sold include:
- Victoria Barracks, Paddington
- Lancer Barracks, Parramatta
- HMAS Penguin (partial)
- Randwick Barracks (partial)
- RAAF Glenbrook
- Spectacle Island
In Victoria, the sites include:
- Latchford Barracks
- Newland Barracks
- RAAF Williams, Port Cook
- RAAF Williams, Laverton (partial)
- Defence site Maribyrnong
- Victoria Barracks
In Queensland, the sites include:
- St Lucia Training Depot
- Mount Isa Rifle Range
- Victoria Barracks
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