November 8, 2026 — 8:48am
The federal government has backed down on its decision to sell off historic Defence properties, including the Victoria Barracks in Melbourne, which together would have raised $3 billion for the Defence Department.
The sale of the heritage properties, including the Victoria Barracks in Sydney, Melbourne and Brisbane, was met with sharp backlash from Returned and Services League branches and former prime minister Paul Keating, when the government announced in February that it planned to fully or partially sell 67 defence sites for an estimated $3 billion – or $1.8 billion after costs.
The Victoria Barracks site in Southbank, across the road from the Shrine of Remembrance, and Fort Queenscliff in Port Phillip will be spared from the sale.
The sites will remain publicly owned, with the government opening them up to public access.
“This program creates opportunities to open Defence’s historic sites and buildings to the public, and to commemorate our nation’s history,” Prime Minister Anthony Albanese said in a statement.
In a statement, Defence Minister Richard Marles said the government could not “afford to be wasting money”.
“It is more important now than ever that we have a Defence Force which is focused on keeping Australians safe, and that involves a fit-for-purpose defence estate.
“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.”
Prime Minister Anthony Albanese and Finance Minister Katy Gallagher will hold a press conference in Sydney on Sunday afternoon to announce the backtrack and next steps for the 63 other Defence sites that will be divested.
In September, The Age reported that Marles insisted he would not back down from selling defence properties.
Divesting the Victoria Barracks sites in Sydney, Melbourne and Brisbane could save taxpayers hundreds of millions of dollars over the next decade, highlighting the scope for major savings if dozens of other defence sites are also sold as expected, this masthead reported.
Victoria Barracks Melbourne, in Southbank, has a 56 per cent utilisation rate, meaning it is nearly half-empty most days.
Meanwhile, Defence Plaza Melbourne, in the CBD, has just a 46 per cent usage rate.
More to come.
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Source: The Age · James Costa
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