In a sweeping move to bolster the military’s budget, the Australian federal government has announced the sale of more than 60 historical Defence-owned sites, including Canberra’s Fairbairn Golf Course. This initiative, set to raise up to $1.8 billion, marks a significant shift in the management of Defence properties.
The divestiture, revealed in a long-awaited audit released by the government on Wednesday, includes the former Royal Australian Air Force military air base at Fairbairn, which is one of 67 Defence sites slated for partial or full sale. This decision follows an extensive review of Defence’s vast estate portfolio, which identified several properties as vacant or “occasionally used”.
Impact on Local Communities and Historical Sites
The Fairbairn Golf Club, which boasted nearly 900 members last year, is among the sites affected by this decision. The ACT government has expressed interest in acquiring Defence-owned land in South Pialligo, where disposal processes are already underway. A spokesperson for the Fairbairn Golf Course was contacted for comment but has yet to respond.
Other significant sites earmarked for sale include the historical Victoria Barracks in Sydney, Melbourne, and Brisbane. Combined, these properties are estimated to be valued at $1.3 billion. The sale of these sites is expected to not only generate substantial revenue but also save Defence an estimated $100 million annually in sustainment costs.
Financial and Strategic Implications
The responsibility for managing the divestiture of these Defence-owned sites will transition to the Department of Finance. The proceeds from these sales will be reinvested into Defence, although the process is anticipated to take several years to complete.
The audit highlighted that many of the older Defence sites have become “unsustainable,” with some suffering irreparable damage. For instance, the Defence site in Maribyrnong, Victoria, has cost taxpayers $2.8 million for maintenance despite being partially destroyed by a fire in 2022.
“The audit found that a large number of older Defence sites had become ‘unsustainable,’ with some damaged beyond repair.”
Reforms and Future Prospects
Defence Minister Richard Marles, who commissioned the audit in August 2023, described the initiative as “the most significant reform to the Defence estate in Australia’s history.” The Defence property portfolio spans 2.8 million hectares across Australia, and this reform is seen as a crucial step towards optimizing resource allocation and operational efficiency.
As part of the transition, hundreds of Defence staff affected by the sales will be relocated to nearby office spaces, including the recently refurbished Defence Plaza office complex in Sydney’s CBD. This complex reportedly remains empty 40 percent of the time, providing ample space for the displaced personnel.
“The Albanese government is undertaking the most significant reform to the Defence estate in Australia’s history.” — Defence Minister Richard Marles
Looking Ahead
The sale of Defence sites is poised to reshape the landscape of Defence property management in Australia. While the financial benefits are clear, the impact on local communities and historical sites is yet to be fully understood. As the process unfolds, stakeholders will be closely monitoring the outcomes and implications of this significant reform.
With the divestiture set to take several years, the Defence Department and the Department of Finance will need to work collaboratively to ensure a smooth transition and maximize the benefits of this ambitious initiative.
