Albanese government to sell $3bn of historic defence sites

The Albanese government will sell about $3bn in historic defence properties following a multi‑year audit, agreeing to dispose of more than 60 sites including Victoria Barracks, with proceeds to be reinvested into defence capability.

The Albanese government has agreed to sell about $3bn in historic defence properties after a multi‑year audit of the 3 million‑hectare defence estate. Defence minister Richard Marles accepted recommendations to dispose of more than 60 properties, and the government plans to move some public servants into modern office space. The sales are presented as a way to free land for housing and public spaces and to reduce running costs for underused sites. Some heritage areas, including World War II-era cabinet rooms in Melbourne, are to be opened to the public. Key details: - The audit covers a 3 million‑hectare defence estate and recommends selling more than 60 properties. - Named sites include Victoria Barracks in Sydney, Melbourne and Brisbane, Spectacle Island in Sydney Harbour, and a munitions site at Maribyrnong in Melbourne. - Gross sales are estimated at about $3bn, with net proceeds of roughly $1.8bn expected after relocation costs and other expenses. - The government expects about $100m a year in upkeep savings and has said 26 major metropolitan site sales could raise as much as $2.4bn, reducing about $3bn in upkeep and security costs over 10 years. - Some facilities will be partially retained (for example HMAS Penguin at Balmoral and parts of Laverton and Warradale); the Pittwater Annex will not be sold. - The finance department will manage the multi‑year disposal process, and the government says proceeds will be reinvested into defence capability, including ahead of changes related to the Aukus agreement. Summary: The government says the sales will reduce upkeep costs, free land for possible housing and public uses, and provide funds for defence capability. The disposal process is expected to be managed by the finance department and take several years, with heritage protections limiting some redevelopment opportunities. The plan is reported to have prompted expectations of criticism over the sale of historically significant sites.