The Department of Defence plans to raise about $3 billion from the sales, which follow an audit that found many sites were underused, sitting idle or could be consolidated. After remediation costs, the government expects $1.8 billion in net revenue. Defence Minister Richard Marles said resources needed to shift from the south and east to the north and west, where bases such as HMAS Stirling and RAAF Tindal have seen huge investment in recent years.
Tasmania stands to lose the bulk of its defence assets: 15 of the 67 sites are in the state, the most of any jurisdiction except Victoria. Both of Tasmania's live fire ranges, Stony Head Training Area and Buckland Military Training Area, are on the list, meaning ADF personnel will have to travel to the mainland for weapons training too complex to run on civilian shooting ranges.
Peter Williams, a veteran and secretary of the Launceston RSL, said he was concerned about the impact. "If they do what they're saying they're going to do, it will be the end of the reserve and cadets in Tasmania," he said.
The most prominent site facing sale is the 166-year-old Victoria Barracks in Sydney's Paddington, which houses around 350 Defence personnel and public servants and serves as the headquarters of Forces Command. Mr Marles has said heritage rules would protect the site's history even after sale, arguing it could be opened to the public. Former prime minister John Howard, who attended a protest against the sale in late October, accused the government of "indifference to our proud national and military history".
Liberal senator Jessica Collins, who led a parliamentary inquiry that recommended an immediate halt to the sales, said the plan carried strategic risk. “Morale is a force element. It is part of our capability. And if you sell places like Victoria Barracks Sydney, morale is going to take a huge hit across the army,” she said. Coalition figures said Australia's population largely lives in the south-east, so the ADF's footprint must reflect that.
Chief of the Defence Force Admiral Mark Hammond sought to ease concerns in Senate estimates, saying the ADF had adapted before when sites such as HMAS Platypus were divested. "There is an element of change that we are used to," he said. "Whilst this is a consideration, it does not define us."
The government says work is underway to address the live fire range issue in Tasmania, with Mr Marles promising "the same or better opportunities for both reserves and cadets", though he has yet to provide details.
The Coalition has attacked the proposals mainly on heritage grounds. Some in the Coalition concede that some south-eastern sites should be sold to free up resources for the north, while senator Collins said the strategic argument against the changes was just as valid. She said selling metropolitan bases was “simply not a feasible idea” in the current security environment.
Michael Pallier of Sotheby's International Realty said sites like Victoria Barracks would attract enormous interest from developers who could build apartments, restaurants and hotels on the land while preserving heritage precincts. But other sites, such as Spectacle Island in Sydney Harbour, accessible only by boat and covered in heritage-listed buildings, would be challenging to sell.