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The government is set to auction off approximately $3 billion worth of military-controlled properties, which include islands and golf courses, in an effort to bolster its expanding defense budget.
Among the 67 properties up for sale, a third are situated on prime land within major cities such as Melbourne, Brisbane, and Sydney.
Defense Minister Richard Marles, who initiated a review of the defense estate in 2023, stated that the goal is to ensure the defense portfolio is “fit for purpose” and aligns with “operational and capability requirements.”
Speaking to reporters in Canberra on Wednesday, Marles noted, “Defense, as one of the largest property owners in the country, possessed a vast estate, much of which was underutilized.”
The initiative is projected to generate around $1.8 billion for the defense budget, following $1.2 billion allocated for administrative and relocation expenses to implement the plan.
Marles stressed that all proceeds from the sales will be reinvested in defence capabilities, with the divestment now handed over to the Department of Finance.
Another $100 million in annual maintenance costs will be saved by offloading ageing facilities.
He acknowledged any pushback over the sale of properties from serving defence members was “understandable”, given “emotional attachments”.
“(But) the heritage value of these properties does not belong to the Australian Army, or for that matter, the Australian Defence Force [ADF],” he said.
“It belongs to the Australian people, and right now, the Australian people are prevented from seeing these properties.”
What’s being sold off?
A total of 64 sites are yet to be fully or partly sold, including the historic Victoria Barracks in Melbourne, Sydney and Brisbane, with some assets taking years to divest.
The Sydney Victoria Barracks site in Paddington will be one of the biggest revenue raisers, due to its central location.
Watch the image below change to see where the defence sites are located.
Melbourne’s Victoria Barracks on St Kilda Road is another revered asset, having served as Australia’s military headquarters, housing the war cabinet during World War Two.
HMAS Penguin, a navy diving base visible from Sydney’s scenic Balmoral Beach, will be partially sold after the government identified that critical navy clearance training facilities would be too expensive to move.
Swan Island, which includes a partial golf course, is among the defence assets being sold, as well as several rifle ranges and training ships Tamar and Derwent, docked around Tasmania.
Of the 68 sites identified, the only one the government chose to keep is a navy diving school in Clareville on Sydney’s northern beaches.
Meanwhile, sites that aren’t heritage listed could be used for housing, including a Maribyrnong defence site in Melbourne’s inner-west.
The revenue raised will go back to Australia’s defence budget, which currently sits at $56 billion, or roughly 2 per cent of GDP.
Labor plans to grow this to 2.35 per cent — or a projected $100 billion by 2034 — according to its national defence strategy.
Underutilised and vandalised assets
The government has spent $4 million on security and maintenance of Spectacle Island in Sydney Harbour, which has stood vacant without any stationed personnel since 2023.
It’s one of 10 vacant sites listed for sale, with another 14 occasionally used, including Canberra’s Fairbairn Golf Course.
While visiting dozens of sites, Assistant Defence Minister Peter Khalil was shocked to see rubbish strewn across Penrith Training Depot.
“I saw abandoned buildings, every window, broken glass, screwed everywhere, vandalism and graffiti,” he told reporters.
Clean-up efforts from persistent vandalism on the vacant site have cost Defence $1 million over six years, while the ongoing maintenance of underutilised sites is estimated to blow out to $2 billion over 25 years.
The authors of the independent review — Jan Mason and Jim Miller — said the 21 recommendations would “break the cycle of underinvestment in facilities”.
“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 audit said.
“It is clear that maintaining the status quo is not an option.”
Opposition critical of ‘heart and soul’ sell-off
Liberal MP Andrew Hastie, a former troop commander in the SAS, has accused the government of a “shortsighted and foolish decision”.
“Labor is selling off historic bases like Victoria Barracks in Sydney and Melbourne, central to the ADF’s identity and history,” he said in the lower house ahead of Question Time.
He said Irwin Barracks in Perth, home to the 13th Brigade, was selling off the “heart and soul” of the army in the west.
Opposition housing spokesperson Andrew Bragg told Sky News the need to sell off assets is due to Labor’s irresponsible spending.
“They’re spending like drunken sailors, there are deficits as far as the eye can see, so selling off government assets is the only thing they can do.”
— With additional reporting by the Australian Associated Press.
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