Defense Department to Raise $2 Billion Selling Islands, Golf Courses, Barracks
The Australian Defence Department is set to implement a substantial divestment strategy, aiming to raise nearly $2 billion. This initiative involves the sale of approximately 35,000 hectares of defence properties, including some historically significant barracks, islands, golf courses, and training facilities. The Albanese government is spearheading this effort following a comprehensive audit of the nation’s defence estate portfolio.
Background of the Audit
The decision to sell off some defence assets comes after a lengthy review led by Jan Mason, former managing director of Defence Housing Australia, and Jim Miller, chair of Infrastructure Victoria. Their audit report, submitted in December 2023, highlighted financial inefficiencies within the defence estate. According to the auditors, many properties are underutilised and drain resources from more critical needs.
Details of the Sales
In total, the government plans to either fully or partially sell 67 defence sites across Australia. Notable locations include:
- Victoria Barracks in Sydney, Melbourne, and Brisbane
- The birthplace of the Royal Australian Air Force in Victoria
- The Army’s headquarters in Sydney
- Multiple training depots and rifle ranges
Initial estimates suggest that the total proceeds from these sales could amount to approximately $3 billion. However, costs associated with relocating staff and necessary remediation work before the sales could reach $1.2 billion. Consequently, net gains from divestments are anticipated to be around $1.8 billion.
Projected Savings and Reinvestment
The Australian government has projected annual savings of about $100 million by eliminating ongoing maintenance costs for these properties. Furthermore, all proceeds generated from the asset sales will be redirected towards enhancements in military equipment and upgrades for essential bases.
Community Reactions and Future Implications
While the divestment plan aims to address inefficiencies, it is expected to encounter resistance. Veterans and local communities may express strong concerns about selling iconic defence facilities. A government source has indicated the urgency of these decisions, citing previous waste of taxpayer funds as justification for the divestment.
The sales process is anticipated to unfold over several years, providing a significant boost to the Australian Defence Force’s resources and capabilities.
