Key facts
- The four sites are Victoria Barracks in Sydney and Melbourne, Fort Queenscliff and RAAF Base Point Cook in Victoria.
- The government will work with the Australian War Memorial to turn the vacated sites into public spaces telling Australia's military history.
- Sales of the Sydney and Melbourne Victoria Barracks had been expected to raise A$1.3 billion given their prime capital-city locations.
- Up to A$2.4 billion was expected from selling 26 major metropolitan sites, saving about A$3 billion in upkeep and security over 10 years.
- The government has a long-term target of 6,000 new dwellings from land freed by the sales.
- Defence expects personnel to have vacated six sites by the end of the year.
Australia's Albanese government confirmed on Sunday, November 8, 2026 that four heritage-listed defence sites will remain publicly owned and their historic elements preserved for community use after defence personnel vacate them. The sites are Victoria Barracks in Sydney and Melbourne, Fort Queenscliff and RAAF Base Point Cook in Victoria.
The four were among 67 sites an independent audit completed in 2023 identified as underutilised by defence, not fit for purpose and costly to maintain, and which were earmarked for sale to recoup A$3 billion in the federal budget. The audit said the estate's legacy sites were "draining resources from higher priority needs" for defence.
The plan drew opposition from public campaign group Save Victoria Barracks Sydney, veterans and former prime ministers John Howard and Paul Keating. Prime minister Anthony Albanese said Victoria Barracks Sydney held a "special place in our nation's history". Defence minister Richard Marles said: "Given the strategic landscape we face, we cannot afford to be wasting money."
The government will work with the Australian War Memorial once the sites are free to transform them 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.
Shadow defence minister James Paterson said questions remain about whether the military should have a presence and capability in Melbourne and Sydney, and said the Coalition will keep fighting to save other sites including HMAS Penguin, Lancer Barracks and Irwin Barracks. NSW opposition leader Kellie Sloane called the site an "irreplaceable part of our military heritage".
Sales of the Sydney and Melbourne Victoria Barracks had been expected to raise A$1.3 billion given their prime locations. Up to A$2.4 billion was expected from selling 26 major metropolitan sites, saving about A$3 billion in upkeep and security costs over 10 years, with a long-term target of 6,000 new dwellings. Defence expects personnel to have vacated six sites by the end of the year.
The announcement comes ahead of cabinet's expenditure review committee meeting on Monday, after the official interest rate was lifted to an 18-year high of 4.85% in a bid to combat persistent inflation. Treasurer Jim Chalmers said higher fuel prices due to the Middle East conflict were the "primary driver" of inflation rather than the government's budget.