First Update On Defence Estate Audit

The Albanese Government is acting on the independent Defence Estate Audit, and progressing the most significant reform to Australia's Defence estate in our nation's history.

Keeping Australians safe is the Government's priority, and as part of that we must ensure the Australian Defence Force (ADF) has access to facilities that are fit for purpose.

In response to the independent Audit, the Government agreed to divest or partially divest 67 sites that were underutilised by Defence, not fit-for-purpose, and costly for Defence to maintain.

The Audit found many of these sites had no direct contribution to current or future capability outcomes for the ADF and that "urgent interventions are needed to correct the unsustainable trajectory that has resulted from decades of deferred decisions on contentious estate issues."

Today, the Albanese Government is providing the first significant update to the Defence Estate Audit since February, and announcing the next steps for a number of sites.

Defence has now transferred 11 sites to the Department of Finance for divestment, and the remaining sites are progressing towards transfer.

As previously announced, Defence will vacate each of these sites and hand them over to the Department of Finance as soon as practicable. By the end of 2026 Defence will have relocated the workforce from a total of six sites to suitable, alternative locations.

The Government has been working to identify optimal outcomes for sites, including those that should be maintained in public hands for broader community use as well as working with governments, stakeholders and communities to identify future use opportunities. This includes sites with limited ownership options or opportunities for community return.

While work is ongoing across many of the sites, the Government has made the following decisions in relation to the first phase of the divestment program.

Custodians identified for sites

HMAS Penguin in Mosman in Sydney was identified for partial divestment. While Defence retains ownership of parts of the site which support critical ADF capability, the Government will transfer the remaining site of the Angophora Forest to the Sydney Harbour Federation Trust, which will be responsible for its stewardship.

Additionally, the Stokes Hill Fuel Installation in the Northern Territory will be transferred back to the Larrakia people, the traditional owners of the lands. The southern portion of the site is a registered sacred site and is protected by the Northern Territory Aboriginal Sacred Sites Act 2012.

Maintaining public ownership at four sites

The Government was clear from the outset that preserving the history and heritage of sites would be closely considered as part of any future use and has listened to the views that have been raised.

Victoria Barracks Sydney, Victoria Barracks Melbourne, Fort Queenscliff (Victoria), and RAAF Williams - Point Cook (Victoria) hold deep significance for our nation, ADF members, both current and former, and local communities.

The heritage at all four will be protected by remaining in public hands.

The heritage of each of these sites is protected by law and public ownership will further guarantee this heritage is appropriately protected and preserved for current and future generations.

The Australian War Memorial will be engaged to help interpret and tell the history of these sites - a history that will be able to be shared with the Australian public.

Defence will continue to vacate these sites as planned and the Government will undertake a divestment process that protects their heritage through public ownership, under conditions that will ensure they are opened for community access and allowing opportunities for commercial use.

Due diligence on these sites, including specific assessments of environmental, heritage and contamination investigations, will continue.

The Government has also identified a preferred divestment pathway across a number of other sites undergoing due diligence (subject to final negotiations).

The Government will provided further updates as work progresses. The below table outlines key updates on intentions, discussions and plans for a number of sites.

Properties with significant historical importance or heritage value

Properties for divestment with cultural significance or a particular purpose

Sites for divestment on the open market

Sites for divestment in partnership with state or territory governments