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More than 68 military sites have been identified for complete or partial divestment, as the federal government announces the most significant reform to the Defence estate in the country’s history.
The changes were announced by the federal government alongside the release of a public version of the Defence Estate Audit and the government’s response to it – agreeing or agreeing in principle to all 20 of the audit’s recommendations.
Under the changes, the government has announced that a total of 68 sites have been identified for divestment. These include the following:
- Wholly divesting 64 sites, three of which have been divested since the audit’s commissioning: Magnetic Island (Queensland), Haberfield Training Depot (NSW) and Garbutt (Queensland).
- Partially divest three sites: HMAS Penguin (NSW), RAAF Williams – Laverton (Victoria) and Warradale Barracks (South Australia).
- Retain in full one site: Pittwater Annex (NSW).
All proceeds from divestments under this process will be retained within the Defence portfolio and be reinvested in National Defence Strategy priorities, including continuing to upgrade and strengthen northern bases.
“In order for the Australian Defence Force to protect our nation and keep Australians safe, it must have a Defence estate that meets its operational and capability needs,” Deputy Prime Minister and Minister for Defence Richard Marles said.
“For many years this has not been the case, with many Defence sites vacant, decaying, underutilised and costing millions of dollars to maintain. That is why the Albanese government is undertaking the most significant reform to the Defence estate in Australia’s history.
“We know this is significant and challenging reform, but we are clear-eyed and committed to seeing it through, because it is the right thing to do in the national interest.”
Commissioned following the 2023 Defence Strategic Review, Jan Mason and Jim Miller led an independent process to assess whether the estate is fit for purpose and provides the Australian Defence Force with the facilities and capabilities it needs to keep Australians safe.
Key areas of focus for the audit included strengthening the resilience of the Defence estate, mechanisms to accelerate delivery of major infrastructure, and options for consolidation of underutilised facilities.
“The Department of Finance has the expertise to manage the large-scale Defence estate divestment program,” Minister for Finance Katy Gallagher said.
“This approach will ensure sites identified by the audit are sold at market value, with careful consideration of remediation, heritage and community impacts. Importantly, proceeds will be reinvested in key Defence priorities.”
The Defence Estate Audit found that “Defence is constrained by the weight of its past when it comes to management of the estate”.
“Today’s estate footprint comprises numerous legacy sites without a clear ongoing link to current or future capabilities.
“Urgent interventions are needed to correct the unsustainable trajectory that has resulted from decades of deferred decisions on contentious estate issues.”
The audit’s 20 recommendations aim to transition the estate towards a more modern, future‑focused and fit-for-purpose capability that best enables the ADF in its tasks.
The audit’s first recommendation, which the government has agreed to, calls for Defence to “reduce its property holdings through focused divestment of sites at market value in areas not aligned with current or future capability priorities”.
The government received the audit at the end of 2023 and has since taken the necessary and appropriate time to assess potential impacts on personnel, capability and broader community groups.
Some of the sites are historically significant and have important meaning to current and former Defence personnel. The Albanese government is committed to preserving and enhancing public access to historically significant sites and collections so that all Australians can celebrate our proud military history.
As part of the divestment process, the Department of Finance will manage the new divestments arising from the Defence Estate Audit.
Finance is leading this process due to its experience in managing large-scale divestment programs, expertise in divestment and remediation, and oversight of the Commonwealth Property Disposal Policy and other land policy and legislation.
“We promised to ensure taxpayer money spent within Defence is aligned with the public’s expectations, and that’s exactly what we’re doing,” according to Peter Khalil, Assistant Minister for Defence.
“These reforms present a once-in-a-generation opportunity to reposition Australia’s Defence estate to ensure it meets the strategic challenges we are facing and enhance our ability to maintain the stability of our region.
“The Defence estate plays such an important role for our Defence personnel and within the broader community. We will continue to support and engage closely with the community as these reforms are implemented.”
The federal government thanked Mason and Miller for their diligent, focused audit, drawing on their experience in estate management, infrastructure development and financial governance.
The federal government is committed to ensuring the Australian Defence Force has the facilities and capabilities it needs to keep Australians safe. This means making the hard decisions to transition to a modern Defence estate that reflects the needs of the nation and its Defence personnel.
