The Albanese government has identified 67 defence properties for potential sale, targeting up to $1.8 billion in revenue as the Australian Defence Force redirects investment towards northern bases and AUKUS submarine infrastructure.
According to the ABC, high-profile properties, including Victoria Barracks in Sydney’s Paddington, Melbourne and Brisbane, are among sites earmarked for disposal, alongside Spectacle Island in NSW and HMAS Penguin.
The sweeping estate consolidation follows an independent audit that found large portions of Defence’s 3-million-hectare property portfolio were no longer necessary, with many facilities having “deteriorated beyond the point of economical repair”.
Defence Minister Richard Marles said the sell-off would deliver better value for taxpayers while improving Australia’s strategic capability.
“Defence as one of the largest owners of property in the country, had a very significant estate, much of which was not being used,” Defence Minister Marles.
The audit, conducted by Jan Mason and Jim Miller, suggests the estate consolidation could generate approximately $3 billion in sales revenue while saving up to $100 million annually in maintenance costs.
However, Defence could incur up to $1.2 billion in disposal costs through site sales, staff relocations and contamination remediation.
Of the 67 identified sites, 10 were vacant while another 14 were only occasionally used. The government agreed to fully or partially dispose of all but one property – a navy diving school in Clareville on Sydney’s Northern Beaches.
The majority of funds would come from 26 large metropolitan sites valued between $2.2 billion and $2.4 billion, according to the Defence Estate Audit Report.
If Defence retained these metropolitan properties, approximately $3 billion in investment would be required over the decade to remediate non-compliant infrastructure and address deferred maintenance.
The disposal strategy directly responds to the 2023 Defence Strategic Review, which identified urgent needs to strengthen Australia’s northern bases as the nation faces “the most complex strategic circumstances since the end of the Second World War”.
Major investments are already underway, including an $8 billion redevelopment of HMAS Stirling in Rockingham ahead of submarine rotation forces, and upgrades to bases from Cocos Island through Learmonth, Exmouth, Curtin and Tindal.
The audit describes the northern network as “critical to enhancing the preparedness and capacity of the ADF and cooperation with international partners – particularly the United States and Singapore”.
Recent work at RAAF Tindal has included airfield upgrades, improved accommodation and purpose-built hangars for MQ-4C Triton remotely piloted aircraft.
The estate review also highlights the importance of identifying an east coast nuclear-powered submarine facility and upgrading HMAS Stirling infrastructure to support US and UK submarine rotational forces from next year under the $368 billion AUKUS pact.
Assistant Defence Minister Peter Khalil said the government was focused on ensuring Defence spending reflected modern needs and benefited taxpayers.
“We promised to ensure taxpayer dollars, along with defence spending, is actually aligned with the public’s expectation of efficiency,” Assistant Defence Minister Khalil said.
