Sunday, 8 November 2026
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WorldPublished: 8 November 2026 at 03:11

Australia to keep four defence sites, including Sydney's Victoria Barracks, in public hands

Following public backlash, the Australian government has dropped plans to sell four heritage-listed defence sites, including Victoria Barracks in Sydney and Melbourne. The wider sell-off of defence property, aimed at raising $3bn for the federal budget, remains in place.

Foto: The Guardian World

The Australian government of Prime Minister Anthony Albanese announced on Sunday that four heritage-listed defence sites will stay in public ownership. They are Victoria Barracks in Sydney and in Melbourne, Fort Queenscliff, and RAAF Base Point Cook, both in the state of Victoria. The decision follows public opposition to selling them, and means the historic parts of the sites will be preserved for community use once defence personnel move out.

Why the sale was planned

An independent audit completed in 2023 found that 67 defence properties were underused, unfit for purpose and costly to maintain. They had been earmarked for sale to recoup $3bn in the federal budget. Selling both Victoria Barracks sites had been expected to raise $1.3bn. Up to $2.4bn was expected from 26 major metropolitan sites, saving about $3bn in upkeep and security costs over 10 years. The government hopes the freed-up land will allow a long-term target of 6,000 new dwellings.

Opposition and the government's explanation

The plan was opposed by the public campaign group Save Victoria Barracks Sydney, veterans and prominent politicians, including former prime ministers John Howard and Paul Keating. Albanese said Victoria Barracks Sydney held a "special place in our nation's history". Defence minister Richard Marles said the military needed to focus its spending on defence capability, and that the government would work with the Australian War Memorial to turn the sites into public spaces telling the story of Australia's military.

Sydney's Victoria Barracks was built between 1840 and 1848 and was originally occupied by the British army. Defence expects personnel to have vacated six sites by the end of the year.

Opposition response

Shadow defence minister James Paterson called the decision a win for defence heritage but said the Coalition would keep fighting to save other sites, including HMAS Penguin, Lancer Barracks and Irwin Barracks. New South Wales opposition leader Kellie Sloane said the military heritage deserved protection for future generations.

The announcement comes ahead of a Monday meeting of cabinet's expenditure review committee on the budget, and after the official interest rate was raised this week to an 18-year high of 4.85% to combat persistent inflation.

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