Albanese Government to Sell 67 Defence Properties to Fund Northern Base Upgrades and AUKUS
Victoria Barracks in Sydney, Brisbane and Melbourne among sites earmarked for disposal in sweeping estate overhaul
The decision follows an independent audit by Jan Mason and Jim Miller that found large swathes of Defence''s 3-million-hectare estate were no longer necessary, with many facilities having "deteriorated beyond the point of economical repair." The auditors concluded that maintaining the status quo was "not an option."
The report estimates the consolidation could generate approximately $3 billion in sales revenue and save up to $100 million annually in maintenance costs. However, Defence could incur up to $1.2 billion in costs for relocations and contamination remediation, putting the net benefit at roughly $1.8 billion.
Among the 67 sites, 10 are already vacant and 14 are only occasionally used. The sole exception is a navy diving school at Clareville on Sydney''s Northern Beaches, which the government has opted to retain.
Defence Minister Richard Marles framed the overhaul as a response to findings from the 2023 Defence Strategic Review, which identified an urgent need to strengthen bases in Australia''s north and west. The government is already undertaking an $8 billion redevelopment of HMAS Stirling in Perth ahead of submarine rotational force operations under AUKUS.
Major metropolitan sites — 26 locations with an estimated market value between $2.2 billion and $2.4 billion — represent the bulk of the financial opportunity. Without the sales, Defence would need approximately $3 billion over the next decade just to remediate non-compliant infrastructure.
Analysis
Why This Matters
This is the largest reshaping of Australia''s military estate in decades, driven by the strategic pivot toward the Indo-Pacific outlined in the Defence Strategic Review. The sales will directly fund the infrastructure needed for AUKUS submarine operations and northern base hardening — reshaping where and how Australia projects military power.
Background
Australia''s $368 billion AUKUS submarine deal requires significant base infrastructure, particularly at HMAS Stirling in Perth, which will host US and UK submarine rotational forces from next year. Northern bases like RAAF Tindal have already been upgraded to support remotely piloted aircraft and increased US force posture cooperation.
Key Perspectives
Defence Minister Marles emphasised the strategic imperative: Australia faces "the most complex strategic circumstances since the end of the Second World War." Critics may question the sale of heritage-listed properties like Victoria Barracks, which have cultural significance beyond their military function.
What to Watch
Which sites ultimately sell and at what price will be closely watched. Heritage concerns, contamination remediation costs, and local community opposition could complicate or delay individual disposals. The net financial return — after the estimated $1.2 billion in associated costs — will be the true test of this strategy.