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November 9, 2026
Veterans have vowed to continue their fight to retain Sydney's Victoria Barracks as a working army base after Anthony Albanese scrapped the sale of four historic defence sites while opening them to commercial use.
The Prime Minister stepped in after a months-long public campaign by opponents of the sale, declaring the 1840s sandstone complex in Paddington would be "free for all Sydneysiders to enjoy".
It will remain in public hands along with three sites of "deep significance" in Victoria: Victoria Barracks Melbourne; the RAAF's birthplace base at Point Cook; and Fort Queenscliff on the Bellarine Peninsula.
More than 60 other sites will remain on the chopping block for full or partial divestment.
Opposition defence spokesman James Paterson said the backdown was "a humiliation" for Defence Minister Richard Marles but "only a partial victory".
"It's my very strong view that they should remain defence bases used by Defence in the future," Senator Paterson said.
RSL Australia national president Peter Tinley, a former SAS officer and WA Labor minister, said: "Keeping these sites in public hands protects our military heritage. It doesn't protect our Defence capability."
All but a handful of personnel will leave Victoria Barracks Sydney by year's end for Randwick Barracks and Defence Plaza Sydney, a CBD office tower Mr Marles said was 60 per cent empty.
Mr Tinley noted the barracks housed the headquarters of the army's Forces Command and was used to train reservists and cadets. "Moving them out before Christmas with nowhere suitable to go is still a hit on morale," he said.
Mr Albanese, who revealed he had never visited the Paddington barracks despite living in Sydney most of his life, said its vast parade area had "extraordinary" potential, including "commercial benefit as well, which would help pay for the maintenance of the site".
A government statement said the four sites would still go through a "divestment process", and would be held by the Department of Finance, which would examine "opportunities for commercial use".
Parts of HMAS Penguin navy base, in Mosman, Sydney, will be retained for navy clearance diver training, while the rest will be transferred to the Sydney Harbour Federation Trust; the Stokes Hill Fuel Installation in the Northern Territory will be transferred back to the site's traditional owners.
Asked whether Defence had handled the issue well given the government's U-turn, Mr Albanese said "Yes".
Mr Marles had defended the sale of the historic sites, arguing Defence could not be a "heritage organisation", and describing Victoria Barracks Sydney as the city's "oldest wine cellar".
He continued to defend the process on Sunday: "It is more important now than ever that we have a Defence Force ... focused on keeping Australians safe, and that involves a fit for purpose defence estate. Given the strategic landscape we face, we cannot afford to be wasting money.
"By moving personnel off these sites, and working to open them up for the public, we are ensuring the history of Victoria Barracks is one that can be protected and returned to all Australians."
Standing beside the Prime Minister on Sunday, the Defence Minister said the financial projections from the defence estate audit were unchanged. The audit earmarked 67 sites for full or partial divestment, with the sales expected to raise $1.8bn after costs.
He said there would be a financial reconciliation once all sites were divested, which could take "many years". He did not directly answer whether the government would pursue long-term leases instead of sales.
Senator Paterson said it was "very difficult to see how the government's budget numbers now add up", with the Sydney and Melbourne barracks among the most valuable properties in the Defence portfolio.
The backdown follows a campaign that united veterans groups, former commanders, the Coalition, Greens, teal independents and One Nation.