Albanese government backs down on controversial plan to sell defence sites including Victoria Barracks
The Prime Minister has U-turned on a plan to sell several historic defence properties following public backlash.
The Albanese government has sensationally backed down on a controversial plan to sell some historic defence properties, including Sydney’s Victoria Barracks, following a vocal community campaign that included former Prime Minister Paul Keating.
Labor has instead confirmed the site — along with Victoria Barracks Melbourne, Fort Queenscliff, and RAAF Williams Point Cook in Victoria — will be kept in public hands but not as defence facilities.
The four prized locations had been among 67 national defence sites earmarked for sale by the Albanese government in February under a plan to net $1.8 billion but will now be leased instead of sold off to a private buyer.
Sign up to The Nightly's newsletters.
Get the first look at the digital newspaper, curated daily stories and breaking headlines delivered to your inbox.
By continuing you agree to our Terms and Privacy Policy.“Victoria Barracks Sydney has a special place in our nation’s history – and we will be keeping it in public hands,” Prime Minister Anthony Albanese said in a statement on Sunday.
“This program creates opportunities to open Defence’s historic sites and buildings to the public, and to commemorate our nation’s history,” he added.
Defence Minister Richard Marles insisted the government was still looking to prioritise funding for the military’s most pressing needs.
“Given the strategic landscape we face, we cannot afford to be wasting money. We need to look at how we best use defence money for defence capability,” Mr Marles said.
“It is more important now than ever that we have a Defence Force which is focussed on keeping Australians safe, and that involves a fit for purpose defence estate”.

The Nightly has been told Defence has, for over a decade, recommended that sites such as Victoria barracks and Fort Queenscliff should be sold off, but previous governments have resisted the idea in anticipation of strong community resistance.
Shadow Defence Minister James Paterson has welcomed the partial backdown, saying the Prime Minister has “publicly overruled his Defence Minister Richard Marles after months of public pressure” over “Labor’s reckless defence estate fire sale”.
“While these sites will now stay in public hands, it is not clear they will remain active defence facilities, leaving questions for Labor about the critical need for a military presence and capability in Melbourne and Sydney,” Senator Paterson said.
“While this is a win for Australia’s defence heritage, it is only the beginning. The Coalition will continue to fight to save other critical defence sites, including HMAS Penguin, Lancer Barracks, Irwin Barracks, and more.”
