Australian government abandons plan to sell historic Victoria Barracks sites

The federal government announced on Sunday that the proposed sale of four heritage‑listed defence properties, including Sydney’s Victoria Barracks, will not proceed. The sites – Victoria Barracks in Sydney and Melbourne, Fort Queenscliff and RAAF Base Point Cook – will be transferred from the Department of Defence to the Department of Finance and later made available for public use, officials said.

The decision follows a wave of opposition from a range of groups. Veterans, the campaign group Save Victoria Barracks Sydney, and former prime ministers John Howard and Paul Keating publicly criticised the original plan, describing it as a threat to national military heritage. Opposition leader Kellie Sloane called the barracks “an irreplaceable part of our military heritage”.

Prime Minister Anthony Albanese stated that the barracks hold “a special place in our nation’s history” and that keeping them in public hands will allow the sites to be transformed into spaces that commemorate Australia’s military past. Defence Minister Richard Marles added that the move aligns with a broader strategy to ensure defence spending is directed toward capability rather than maintaining under‑utilised properties.

The four properties were identified in an independent audit earlier this year as under‑utilised and costly to maintain, and were initially earmarked to raise up to $3 billion for the federal budget. The government now plans to work with the Australian War Memorial to develop public exhibitions and community facilities once defence personnel vacate the sites.

Shadow defence minister James Paterson said the decision is a “win for Australia’s defence heritage” but noted that further battles may be fought over other sites such as HMAS Penguin and Lancer Barracks. The announcement is expected to be discussed at an upcoming cabinet meeting on the budget.