Government to Auction Historic Defense Properties
The Albanese government is set to auction off 67 defense properties, aiming to unlock significant funds for the Australian Defence Force. This initiative could yield up to $1.8 billion as part of a strategy to improve critical capabilities and invest in northern bases and infrastructure supporting the AUKUS program.
Historic Defense Properties Targeted for Sale
A comprehensive independent audit has identified several high-profile properties for potential divestment. These include:
- Victoria Barracks, Sydney
- Brisbane Barracks
- Melbourne Barracks
- HMAS Penguin, NSW
- Spectacle Island, NSW
The report, compiled by auditors Jan Mason and Jim Miller, revealed that large portions of the Australian Defence estate, which spans 3 million hectares, are no longer necessary. Many facilities have deteriorated beyond economical repair.
Financial Implications of the Audit
The report suggests that consolidating the estate could generate around $3 billion from sales, alongside annual maintenance savings of up to $100 million. However, the process may also incur costs of approximately $1.2 billion related to site disposals, staff relocations, and contamination remediation.
The report highlights the expected revenue from major metropolitan site sales, which are estimated to have market values between $2.2 billion and $2.4 billion across 26 locations. Retaining these properties could necessitate up to $3 billion in investments over the next decade to address infrastructure compliance issues.
Sites for Disposition
Among the 68 sites evaluated, the government plans to either fully or partially dispose of 67. Notably, ten of these sites are currently vacant, while 14 see only occasional use. The only property retained will be a navy diving school located in Clareville, Sydney, where relocation logistics are impractical.
Future Prospects
While the sale of these historic defense properties is expected to take several years to finalize, it may help alleviate the housing supply shortage nationwide. Additionally, funds raised will contribute to the defense budget, which currently stands at $51.4 billion.
