4 February 2026

Government to divest 64 Defence sites after release of Defence Estate Audit

| By Andrew McLaughlin
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HMAS Penguin

HMAS Penguin on Sydney’s Middle Head will be divested, and would be an attractive target for developers or for the NSW Government to extend the Middle Head National Park. Photo: Google Earth.

The Federal Government has released the public version of the Defence Estate Audit and its response to the audit, and says it will wholly or partly divest itself of 67 Defence sites across the country, including Canberra’s Fairbairn Golf Course.

Described as the most significant reform to the Defence estate ever to ensure it is fit for purpose, the government says it will “provide the Australian Defence Force (ADF) with the facilities and capabilities it needs to keep Australians safe”.

The audit was commissioned following the 2023 Defence Strategic Review, and the independent process was conducted by Jan Mason and Jim Miller and delivered to government in late 2023. It says its focus included strengthening the resilience of the Defence estate, mechanisms to accelerate delivery of major infrastructure, and options for consolidation of underutilised facilities.

In brief, the audit found that, “Defence is constrained by the weight of its past when it comes to management of the estate. It said the “estate footprint comprises numerous legacy sites without a clear ongoing link to current or future capabilities”, and that “urgent interventions are needed to correct the unsustainable trajectory that has resulted from decades of deferred decisions on contentious estate issues”.

Fairbairn was one of 14 Defence-owned sites found to be vacant or “occasionally used”.

It said its 20 recommendations aimed to transition the estate towards a more modern, future‑focused and fit-for-purpose capability that best enabled the ADF in its tasks.

A total of 68 sites were identified for divestment by the audit. Following assessment, the government has agreed to wholly divest 64 sites – three of which have been divested since the audit’s commissioning; partly divest three sites; and retain one site in full.

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While the list of sites is extensive, some of the more notable ones include the Australian Army’s Victoria Barracks in Brisbane, Sydney, and Melbourne, RAAF Base Glenbrook in the NSW lower Blue Mountains, and Edinburgh Parks in South Australia.

Other significant sites slated for divestment include the Fairbairn Golf Course in Canberra, HMAS Penguin at Middle Head and parts of Randwick Barracks in Sydney, Derwent Barracks in Hobart, Defence Site Maribyrnong in Melbourne, Fort Queenscliff in Queenscliff Victoria, RAAF Point Cook near Melbourne, and the Leeuwin Barracks in Fremantle.

The government says the selected locations will be transferred to the Department of Finance which will manage their divestiture. It says 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.

Victoria Barracks Sydney

Some properties, such as Victoria Barracks in Sydney, will likely be preserved due to their heritage status. Photo: ADF.

Some properties such as Victoria Barracks locations in Melbourne and Sydney will likely be preserved for their heritage value. The government has acknowledged their historical significance and meaning to current and former Defence personnel, and says it is committed to preserving and enhancing public access to some of them.

Others that might be ideally located for sale and development such as the RAAF’s Air Command at Glenbrook or are close to other bases and have established defence industries such as Edinburgh Parks may not be easy to relocate, and may instead be leased back to the Commonwealth.

All proceeds from the divestments will be retained by Defence and reinvested into National Defence Strategy priorities, including continuing to upgrade and strengthen other bases.

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Minister for Defence Richard Marles said the Defence estate must meet operational and capability needs.

“For many years this has not been the case, with many Defence sites vacant, decaying, underutilised and costing millions of dollars to maintain,” he said.

“That is why the 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.”

Minister for Finance Katy Gallagher said her department had the expertise to manage the large-scale Defence estate divestment program.

“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,” she said.

Assistant Minister for Defence Peter Khalil said the government had promised to ensure taxpayer money spent within Defence was aligned with the public’s expectations.

“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,” he said.

“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.”

Original Article published by Andrew McLaughlin on PS News.

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