The Albanese government has abandoned the sale of Victoria Barracks in Sydney, bowing to public pressure and dropping its most high-profile defence asset from a plan to recoup $3 billion in taxpayer money. The decision, announced on Sunday, means the 186-year-old colonial-era sandstone headquarters in Paddington will remain in government hands, but will no longer serve as an active Australian Defence Force facility and will instead be opened to the public.
Defence Minister Richard Marles had maintained until September that the barracks would be sold, describing it as “the oldest wine cellar in Sydney,” used by only a section of the military elite. The comments provoked a backlash from supporters of the site and galvanised the Save Victoria Barracks Alliance, with veterans’ groups, former prime ministers Paul Keating, John Howard and Tony Abbott, Premier Chris Minns and federal, state and local politicians all speaking out against the sale.
Prime Minister Anthony Albanese said in a statement: “Victoria Barracks Sydney has a special place in our nation’s history – and we will be keeping it in public hands. This program creates opportunities to open Defence’s historic sites and buildings to the public, and to commemorate our nation’s history.”
Marles said in a statement: “By moving personnel off these sites, and working to open them up for the public, we are ensuring that the history of Victoria Barracks is one that can be protected and returned to all Australians.” He added: “Given the strategic landscape we face, we cannot afford to be wasting money. We need to look at how we best use defence money for defence capability.”
The government estimated maintaining the site as a defence facility would cost $200 million over the next 10 years, and the decision will leave a hole worth hundreds of millions of dollars in the push to recoup $3 billion from ailing defence assets. Victoria Barracks, Point Cook in Melbourne and Fort Queenscliff near Geelong would remain publicly owned and be opened up for community access, with the Australian War Memorial to be engaged to advise on showcasing the history of the sites.
Finance Minister Katy Gallagher said the government was working to maximise the best outcome: “To ensure defence has the capabilities it needs, and that this land is put to good use, including public access.”
Analysis
Why This Matters
- The abandoned sale removes the most high-profile asset from the government’s plan to raise $3 billion from defence land, leaving a shortfall worth hundreds of millions of dollars.
- Victoria Barracks will shift from an active defence facility to a public heritage site, changing how the historic property is used.
- The reversal shows the political weight of the opposition coalition, which may affect how the government handles other defence asset sales.
Background
Victoria Barracks is a colonial-era sandstone military base in Paddington, an inner suburb of Sydney, built in the mid-19th century and long used as an Australian Defence Force facility. The government had been seeking to sell off defence properties to recover funds, and the barracks was the most prominent site in that program. Opposition to the sale united veterans’ groups, former prime ministers from both major parties, the NSW premier and local politicians in the Save Victoria Barracks Alliance.
Key Perspectives
Anthony Albanese (Prime Minister): says the barracks has a special place in the nation’s history and should be kept in public hands, with Defence’s historic sites opened to the public.
Richard Marles (Defence Minister): previously argued for the sale, calling the barracks “the oldest wine cellar in Sydney,” and now says moving personnel off the site and opening it to the public protects its history and ensures defence money goes to capability.
Save Victoria Barracks Alliance and its supporters: veterans’ groups, former prime ministers Paul Keating, John Howard and Tony Abbott, NSW Premier Chris Minns and other federal, state and local politicians spoke out against the sale, prompting the government to abandon it.
Katy Gallagher (Finance Minister): says the government is working to maximise the best outcome, ensuring defence has the capabilities it needs and the land is put to good use.
What to Watch
- How the government covers the hundreds of millions of dollars the abandoned sale will cost its $3 billion defence asset program.
- The shape of public access and heritage plans at Victoria Barracks, with the Australian War Memorial advising on showcasing its history.
- Whether other defence sites in the sell-off program attract similar opposition and reversals.
Checked
12 claims in this story checked against 1 source: 12 supported.
Show each claim
- SupportedAlbanese said Victoria Barracks Sydney had a special place in the nation’s history and would be kept in public hands.Brisbane Times - Latest News: ““Victoria Barracks Sydney has a special place in our nation’s history – and we will be keeping it in public hands,” Prime Minister Anthony Albanese said in a statement.”
- SupportedMarles said moving personnel and opening the sites to the public would help protect and return Victoria Barracks’ history to Australians.Brisbane Times - Latest News: ““By moving personnel off these sites, and working to open them up for the public, we are ensuring that the history of Victoria Barracks is one that can be protected and returned to all Australians,” Marles said in a statement on Sunday.”
- SupportedMarles said the government could not afford to waste money and needed to consider how best to use defence money for defence capability.Brisbane Times - Latest News: ““Given the strategic landscape we face, we cannot afford to be wasting money. We need to look at how we best use defence money for defence capability.””
- SupportedGallagher said the government wanted defence capabilities and land put to good use, including public access.Brisbane Times - Latest News: ““To ensure defence has the capabilities it needs, and that this land is put to good use, including public access,” she said.”
- SupportedThe Albanese government abandoned the sale of Victoria Barracks after public pressure.Brisbane Times - Latest News: “The Albanese government has bowed to public pressure and abandoned the sale of Victoria Barracks”
- SupportedThe government removed its most high-profile defence asset from an effort to claw back $3 billion in taxpayer money.Brisbane Times - Latest News: “removing its most high-profile defence asset from its attempt to claw back $3 billion in taxpayer money.”
- SupportedMarles described Victoria Barracks as “the oldest wine cellar in Sydney.”Brisbane Times - Latest News: “Defence Minister Richard Marles had until September maintained that Victoria Barracks would be sold, describing it as “the oldest wine cellar in Sydney,” used by only a section of the military elite.”
- SupportedThe government estimated that maintaining the site as a defence facility would cost $200 million over 10 years.Brisbane Times - Latest News: “The government estimated maintaining the site as a defence facility would cost $200 million over the next 10 years.”
- SupportedKeeping Victoria Barracks in public hands would leave a hole worth hundreds of millions of dollars in the effort to recoup $3 billion from defence assets.Brisbane Times - Latest News: “The decision to keep Victoria Barracks in public hands will punch a hole worth hundreds of millions of dollars in the government’s attempt to recoup $3 billion from ailing defence assets.”
- SupportedVictoria Barracks will remain in government hands and be opened to the public.Brisbane Times - Latest News: “The colonial-era sandstone headquarters will not be sold, but it will also no longer be used as an active Australian Defence Force facility. Instead, it will be opened to the public.”
- SupportedVictoria Barracks will no longer be used as an active Australian Defence Force facility.Brisbane Times - Latest News: “The colonial-era sandstone headquarters will not be sold, but it will also no longer be used as an active Australian Defence Force facility.”
- SupportedThe decision was announced on Sunday.Brisbane Times - Latest News: “The decision, announced on Sunday, means the 186-year-old Victoria Barracks in Paddington will remain in government hands.”