2 weeks Ago By Matthew Knott
Plans for a major sale of properties from the federal government’s sprawling Defence real estate portfolio have been shelved until next year, and probably until after the federal election, amid fears of a backlash over the disposal of prime military sites. The Coalition and the Greens have leapt upon the delay to accuse the Albanese government of dithering when required to make tough decisions about Defence. Defence Minister Richard Marles received a sweeping audit of Defence property last December and planned to release a response in the middle of this year.
Victoria Barracks, in Sydney’s eastern suburbs, is one of the Defence sites that was scrutinised by the audit review. Marles now says the government will not act on the audit until “sometime next year”, meaning the government may have sat on the report for more than 18 months before releasing its response. As well as freeing up money for new military equipment and base upgrades, selling Defence properties and converting them into residential dwellings could help address the nation’s housing crisis by boosting supply in major cities.
The resale value of the Defence estate could be as high as $68 billion if sold to property developers for residential or commercial use, according to the Australian Strategic Policy Institute. The regency-style Victoria Barracks in Paddington, in Sydney’s eastern suburbs, and the Victoria Barracks on St Kilda Road, Melbourne, are among hundreds of properties that have been examined for possible sale. Defence is the largest Commonwealth landowner, with a 3 million-hectare portfolio consisting of more than 1000 owned and leased properties, including military bases, barracks, wharves, ports, airbases, training ranges and storage facilities.
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