Four heritage-listed defence properties to be preserved for community use after backlash from veterans and former PMs
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Richard Marles has denied claims Australia’s defence will be undermined by its decision to repurpose a historical military base near Sydney’s CBD for public use.
The Albanese government announced on Sunday four heritage-listed defence sites, including Sydney’s Victoria Barracks, will remain in public hands after the plan generated considerable public backlash against their sale.
Critics, including veterans and high-profile politicians such as former prime ministers John Howard and Paul Keating, fiercely opposed the decision, with some political opponents questioning if the country’s largest city would be more vulnerable to foreign military and terrorist attacks.
The defence minister said the buildings were mostly used by office workers and no one was “seriously” suggesting the convict-labour built Victoria Barracks was fundamental to Australia’s defence.
“People making the argument know that. I don’t think there’s anyone who’s really seriously suggesting this facility is fundamental to the defence of Australia.”
The defence-owned heritage sites, along with 63 others around the country, were identified in an independent audit as being underutilised by defence, not fit for purpose and costly to maintain, and were earmarked for sale to recoup $3bn in the federal budget.
Ahead of an important cabinet meeting on the budget on Monday, the Albanese government confirmed that four sites – Victoria Barracks in Sydney and Melbourne, and Fort Queenscliff and RAAF Base Point Cook in Victoria – will remain publicly owned and their historic elements preserved for community use after they are vacated by defence personnel.
The prime minister, Anthony Albanese, said parts of the soon-to-be publicly owned sites could still be used for commercial purposes, in line with heritage laws, to help cover their maintenance costs.
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The government will work with the Australian War Memorial once the sites are free to transform the sites into public spaces that tell the history of Australia’s military.
Sydney’s Victoria Barracks was built between 1840 and 1848 and was originally occupied by the British army. It is also the site of the city’s oldest wine cellar.
The shadow defence minister, James Paterson, said questions remain about whether the military should have more of a presence and capability in Melbourne and Sydney.
“While this is a win for Australia’s defence heritage, it is only the beginning. The Coalition will continue to fight to save other critical defence sites, including HMAS Penguin, Lancer Barracks, Irwin Barracks, and more,” he said.
The NSW opposition leader, Kellie Sloane, said the site was an “irreplaceable part of our military heritage that deserves to be protected for future generations”.
“Our military heritage and defence capability must come before a short-term cash grab,” she said.
The Returned & Services League of Australia president, Peter Tinley, said the announcement was a “partial victory”.
“Retaining Victoria Barracks Sydney has never just been about its history. It’s home to the headquarters of forces command, and reservists and cadets train there. That’s a story that should be kept alive.
Two other sites will be partially divested, the government announced. HMAS Penguin in Sydney’s northern beaches will be partially retained by defence with the Angophora Forest transferred to the Sydney Harbour Federation Trust.
In the Northern Territory, the Stokes Hill fuel installation will be handed back to the Larrakia people, the traditional owners of the lands. The southern portion of the site is a registered sacred site and is protected under law.
The multi-year audit, completed in 2023, was tasked with identifying surplus and costly property holdings, often costing millions to maintain.
The audit found 67 underutilised sites are “draining resources from higher priority needs” for defence.
The sales of the Sydney and Melbourne Victoria Barracks were expected to raise $1.3bn, given their prime locations in the biggest capital cities.
Up to $2.4bn was expected to be raised from the sale of 26 major metropolitan sites, saving about $3bn in upkeep and security costs over 10 years. These include sites in Randwick, Sydney; Sandringham and St Kilda in Melbourne; Petrie Terrace in Brisbane; and Fremantle in Western Australia.
The government hopes the sales will free up land for new housing developments with a long-term target of 6,000 new dwellings.
Defence expects personnel will have vacated six sites by the end of the year and all sites to be divested from within two years.
The announcement comes as cabinet’s expenditure review committee, which determines budget decisions, meets on Monday after the official interest rate was lifted to an 18-year high of 4.85% in a bid to combat persistent inflation this week.
The treasurer, Jim Chalmers, said this week higher fuel prices due to the Middle East conflict were the “primary driver” of inflation rather than the government’s budget.
