Sydney and Melbourne Barracks Saved From $1.3 Billion Sale

The Albanese government confirmed on Sunday, November 8, that four heritage-listed defence properties will remain in public hands. The decision cancels the planned sale of Victoria Barracks in Sydney and Melbourne, Fort Queenscliff, and RAAF Base Point Cook in Victoria. This move halts the disposal of assets that were expected to generate $1.3 billion for the federal budget.

The reversal comes after a wave of opposition from veterans, campaigners, and former prime ministers John Howard and Paul Keating. Prime minister Anthony Albanese cited the "special place in our nation's history" held by the Sydney barracks. Defence minister Richard Marles stated that the government must prioritize military capability in the current strategic environment. He added that relocating personnel and opening the sites to visitors would help preserve their history.

The four properties were part of a larger list of 67 sites identified for disposal by an independent audit completed in 2023. The audit found that legacy properties without clear military connections were diverting resources from pressing priorities. The government originally aimed to recover $3 billion from the sales and save another $3 billion in maintenance and security costs over a decade. The Sydney and Melbourne barracks were the primary drivers of the $1.3 billion projection due to their valuable urban locations.

Defence personnel will still vacate the properties. The government intends to partner with the Australian War Memorial to convert the sites into public spaces dedicated to military history. Shadow defence minister James Paterson welcomed the protection but questioned what military capability should remain in the cities. He noted that the Coalition would continue opposing the sale of other sites, including HMAS Penguin, Lancer Barracks, and Irwin Barracks.

NSW opposition leader Kellie Sloane argued that military heritage should take precedence over immediate financial returns. Peter Tinley, president of the Returned & Services League of Australia, called the announcement a "partial victory." He emphasized that the Sydney barracks remains a headquarters for forces command and a training hub for reservists. Tinley warned that moving personnel before Christmas without suitable alternative accommodation would damage morale.

The wider disposal program aims to release land for housing, with a long-term goal of 6,000 new dwellings. Defence expects personnel to leave six sites by the end of the year. The announcement precedes Monday's meeting of cabinet's expenditure review committee. It also follows a recent increase in the official interest rate to 4.85%, an 18-year high, as authorities seek to curb persistent inflation.