Victoria Barracks in Sydney and Melbourne to remain in public hands after partial backtrack on defence property selloff

Four heritage-listed defence properties to be preserved for community use after backlash from veterans and former PMs

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Four heritage-listed defence sites, including Sydney’s Victoria Barracks, will remain in public hands after the Albanese government yielded to public backlash against their sale.

The sites, along with 63 others around the country, were identified in an independent audit as being underutilised by defence, not fit for purpose and costly to maintain, and were earmarked for sale to recoup $3bn in the federal budget.

But the plan to sell off the heritage-listed sites drew fierce opposition from public campaign group Save Victoria Barracks Sydney, veterans and high-profile politicians including former prime ministers John Howard and Paul Keating.

Ahead of an important cabinet meeting on the budget on Monday, the Albanese government confirmed on Sunday that four sites – Victoria Barracks in Sydney and Melbourne, and Fort Queenscliff and RAAF Base Point Cook in Victoria – will remain publicly owned and their historic elements preserved for community use after they are vacated by defence personnel.

The prime minister, Anthony Albanese, said Victoria Barracks Sydney held a “special place in our nation’s history” while the defence minister, Richard Marles, said the military needed to focus its spending on keeping people safe.

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“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,” Marles said.

“By moving personnel off these sites, and working to open them up for the public we are ensuring that the history of Victoria Barracks is one that can be protected and returned to all Australians.”

The government will work with the Australian War Memorial once the sites are free to transform the sites into public spaces that tell the history of Australia’s military.

Sydney’s Victoria Barracks was built between 1840 and 1848 and was originally occupied by the British army. It is also the site of the city’s oldest wine cellar.

The shadow defence minister, James Paterson, said questions remain about whether the military should have a presence and capability in Melbourne and Sydney.

“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,” he said.

The NSW opposition leader, Kellie Sloane, said the site was an “irreplaceable part of our military heritage that deserves to be protected for future generations”.

“Our military heritage and defence capability must come before a short-term cash grab,” she said.

The multi-year audit, completed in 2023, was tasked with identifying surplus and costly property holdings, often costing millions to maintain.